Your Personal Navigation System Through Not-for-Profit Accounting Issues

Understanding COSO: developing strong internal controls

It is important to note that there is NO way to fully prevent fraud. Collusion between employees will always be a risk in your organization but a strong internal control system will help minimize the damage and limit fraudulent opportunities. Understanding why employees commit fraud is vital in creating a successful prevention strategy. The fraud …

Keep Reading

Donor retention, how good is yours?

Turning first-time donors into long-term donors is always the goal but not often the reality. Gaining new donors is expensive and time consuming and often an organization will lose on the amount of time and money put into gaining that donor if they give only once. If you feel your organization has a difficult time …

Keep Reading

Benefits of spending time on the SOFE

When addressing your SOFE (Statement of Functional Expenses) for the upcoming audit, it is important to remember that the SOFE must be broken out into its three functional categories. Those are program services, management and general (M&G) and fundraising. Now, your nonprofit may have a standing template for which you fill out the SOFE and …

Keep Reading

Conflict of interest policy – why you should have one

A written conflict of interest policy should be put into place to ensure that voting board members are not influenced to act in any way other than in the best interests of the organization. Nonprofits can be closely monitored by the public to see if any transactions the organization enters into directly benefit a member …

Keep Reading

Six Sigma, work smarter, not harder

Pop quiz! What is the most important resource to a nonprofit organization? Answer: People! You thought I was going to say the contributions, didn’t you? While that might be what supports the mission of the organization, where would the organization be without the development department raising those contributions, the finance team making sure your tight …

Keep Reading

Should you consolidate your nonprofit organization?

Nonprofit organizations sometimes have relationships with other entities that are affiliated in some way. How do you know when you should consolidate two or more nonprofit organizations? Under accounting standards, there are two elements that are required to be present to consolidate: Control. Organization A must clearly have control over Organization B. To have control, …

Keep Reading

FinCen Form 114: Does your organization need to file?

Is your nonprofit involved in activities in foreign countries? This includes operating an orphanage, conferences, mission work or any other type of program activity. If so, your organization may find it necessary to open a bank account in that country. Once you decide to do that, Form 114 may be required for you to file …

Keep Reading

Don’t give employees opportunity to commit fraud

The term “segregation of duties” is used in the prevention of fraud within an organization. It involves separating duties among employees so that no single staff person is put in an advantageous position to exploit their control for self-gain. A large factor in how someone commits fraud and gets away with it is that they …

Keep Reading

Young Nonprofit Professionals Network

The Young Nonprofit Professionals Network (YNPN) is a group solely devoted to helping and training young professionals who want to devote their energy and commitment to the social sector. YNPN looks for those who are purpose-loving changers, mission-driving professionals, big idea pushers and cause crusaders who make nonprofits happen. The network connects nonprofits with young/passionate …

Keep Reading

The Uniform Guidance and required policies

When the Uniform Guidance was issued, it brought with it several changes for entities that receive federal awards. The purpose of the Uniform Guidance was to reduce the risk of fraud, waste and abuse as well as to streamline the requirements for several different types of entities that receive federal funds. The Office of Management …

Keep Reading