The Internal Revenue Service (IRS) doesn’t require nonprofits to have independent audits, but that doesn’t mean your nonprofit never needs an audit. Some federal, state, and local government agencies require audits, as do some banks and foundations. Generally, the requirements relate to the nonprofit’s size or spending. When an Audit Is Required An independent audit […]
Tag: internal controls
Theft in the Workplace: How to Identify and Stop It
No matter what type of business you run, you’re vulnerable to employee theft motivated by greed, anger, dissatisfaction, or an “above the rules” attitude. Which of these ways employees steal are areas of vulnerability for your business? Payroll theft: Are your employees really working the hours they claim to be? Do you have controls to […]
Internal Fraud: How to Secure and Investigate Evidence
Discovering that you are the victim of an internal fraud is a harrowing experience, particularly when the perpetrator is someone you’ve trusted. The feeling of betrayal is strong. Your instincts tell you to react immediately. It’s hard to go against that instinct, but that is exactly what you should do so you can learn what […]
Building Trust: Why Transparency Matters in the Nonprofit World
You manage a nonprofit or serve on its board, and you’ve heard that nonprofits need to have an independent audit. You wonder whether your organization needs one and want to better understand what it actually entails. State and federal laws vary in their regulation of nonprofits. Some states require an independent audit, whereas others do […]
CFO, yes or no? Here’s how to decide
Whether your not-for-profit organization needs a chief financial officer (CFO) depends on many factors, such as the size of your organization, the complexity and types of revenue sources, and the number of programs you have. Static organizations are less likely to need a CFO than those with evolving programs and long-term plans that rely on […]