Crisis is a matter any organization has to consider and prepare for. However, NGOs are not well aware of the possibility of crisis and how to manage crises as well as profit organizations. Since NGOs are considered as good-will oriented organizations, its risks are rarely revealed to the public compared to profit organizations with strict monitoring. However, once an NGO has crises relating to embezzlement and corruption, the damage is extremely serious with a high level of transparency such as the Community Chest of Korea's case. The CCK's corruption scandal damaged the public's faith in charity organizations such as the Salvation Army with a 0.4% decrease in donations.
An NGO's prominent difference from a profit organization is the "independent sector". It means that the NGO has to govern organization itself without the government control. Also, voluntary endeavor has to be executed without profit distribution. Due to its characteristics of the NGO, boards and executives' roles are significant to keep its transparency and effectiveness.
Diagnosing CCK's mismanagement in the crisis such as absences of aggressive communication, passive attitudes of the internal leadership and executives, belated apologies enables CCK to plan crisis management for prevention and preparation. It gives implication to the NGOs that they should manage the crisis situations essentially open, honest, and quick. Preparation with crisis management plan has to be preceded after the crisis event.
This study approaches crisis management at every event stage with a theoretical explanation and the implication of the cases to give an understanding of crisis management. Also, through characteristics and diagnosed vulnerabilities of the NGO, exemplified issues and risks are suggested for NGO crisis management. Based on the studies of profit organizations and an NGO crisis management case, the Community Chest of Korea's management structure is scrutinized and common vulnerabilities of issue and risks of NGOs are discussed. Its crisis management is analyzed in the aspect of possibility of prevention, and the way it handled damage control. Its crisis management gives insights to other NGOs since CCK is the leading charity organization in Korea. This study shows how damage prevention from crises in any NGOs could be faced gives the right circumstances.