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How Non-Profits Improve their Chances to Receive Funding

How Non-Profits Improve their Chances to Receive Funding

Non-for-profit organizations (NFP)  most important resource is its programs. It is also relevant to mention that the main value is its reputation. The employees and volunteers are the keys to fulfill the mission and objectives proposed each year. 

There is a basic structure that NFPs can implement to make themselves more appealing for financing. This structure starts with a Board of Directors, goes thru Antifraud Programs and ends with monitoring and reporting systems.

Elements of Non-For-Profit Organization:

 Strong Board of Directors

  •  Legal Counsel/or have access to one
  •  Accountant CPA

Leadership 

  •  Chief Operating Officer
  •  Leaders- The tone at the top
  •  Have a Clear Compass- Big Picture
  •  Practice Considerate Communication
  •  Know their Objectives
  •  Seek Advisers and Allies

Accounting Internal Controls

  •  Accurate and reliable financial reporting
  •  Compliance with applicable laws and regulations, contracts  and grant agreements
  •  Management’s objectives regarding the effectiveness and  efficiency of operations

How Non-Profits Circle

Anti-Fraud Programs and Controls

  •  Fraudulent financial reporting
  •  Asset misappropriation- Theft of assets
  •  Conflict of interest- Use of employee’s position in a way that violates the employee-employer relationship.
  • Eg – bribery, extortion, conflicts of interest
 

How Non-Profits can improve their chances CircleInternal Controls

 Control Environment
  • Sets the tone from the top of the organization. This category of controls include integrity and ethical values, commitment to competence, attention, and direction provided by the board of directors or audit committee, management’s philosophy and operating style, organizational structure and the manner of assigning authority and responsibility, and human resources policies and procedures
 
Risk Assessment Process
  • The process the organization goes through to identify the risk that would prevent it from meeting its objectives
 
Risk Internal factors 
  •  Lack of diversity of funding sources
  • Turnover in key positions
  • Implementation of anew IT system
  • Entering into new programs with rapid growth  with insufficient infrastructure to support it
 
Risk External factors
  •  Deterioration of the economy affecting its funding sources
  • Changes in accounting principles and reporting requirements
  • Who are your competitors and what can you offer differently
  • Who are your allies
 Information controls
  • The technology and processes necessary to initiate, authorize, process, record, and report transactions and events in the financial statements and to communicate the results to management and employees who have a need for information.

Communication controls

  •  Involves the quality of communication between the board and management
  • The Board and external Auditors and Internal Auditors
  • Staff and Management
  • Management and donors
  • Funding sources
  • Vendors

Monitoring

  • Monitoring is a very important control function. It occurs when management follows up to determine whether the Non-profits’ staff members are performing their duties as expected.
  • It also occurs when the Board follows up to determine that its objectives are being met.
  • Monitoring controls needs to be performed at the overall Entity  level and also at the transactional level

This is a summary presentation given by Marlon Kilgour, CPA from Kilgour and Associates, LLC.

Fulton Abraham Sanchez, CPA, founder of FAS CPA & Consultants of Miami, FL, is a Certified Public Accountant specializing in Tax Planning. You can email him to fa@fascpaconsultants.com or contact us on Facebook: FAS CPA & Consultants

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Fulton Abraham Sanchez, CPA

Fulton Abraham Sánchez, CPA is a Certified Public Accountant, specialized In Tax Planning, International Business, Wealth Management and Offshore Banking. You can email him to fa@fascpaconsultants.com or follow us on Facebook : FAS CPA & Consultants.

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