Each non-profit organization has an obligation to manage integrity for its supporters through appropriate money-handling processes, filing, and auditing. External procedures include the way a non-profit organization represents itself, its mission, as well as its use connected with contributed funds.
An institution needs to have the power to showcase itself aggressively, without having to use hyperbole or misrepresentations. Internal methods include everything from handling inbound mail, instruction of phone receptionists, income and data flow, and controls.
Inward mail procedures are imperative, provided that the person that retrieves the mail, often is not the one who takes action on bills, contributions, or critical material. Phone receptionists should be qualified to be courteous, and to be mindful of the mission of the organization and it is easy to turn for help for any kind of request which might be out of the ordinary.
Phone receptionists are significant since they often are the "face" of the particular organization. They are commonly the earliest contact that the outsider has with the organization, and the impression which can be made is valuable. Therefore, training the receptionist should be regarded as a worthwhile investment.
The internal controls on money-handling are sometimes overlooked. The assumption is that individuals are honest. Even if this assumption is in many instances correct, the need of money-handling operations goes past characterizing the money-handlers. Keeping an "honest man honest" is a single step-above having no procedures. Having the ability to successfully publicize to the outside world that money-handling methods can be found in place, and can easily be audited, is closer to the recommended.
In other words, money-handling procedures add to the integrity of the organization. Duties should really be separated. Two non-related people should be involved with every practical part of money handling. Signing privileges should be separated from reporting and data entry. No signers should be allowed to edit the accounting books, for example.
Reporting and audits have three stages of escalating integrity. An internal review shows that reports are viewed by the board of an organization and made available to its constituency. A compilation is the general review by an impartial, outside reviewer, who verifies some level of accounting integrity has taken place. An audit by an third party agency is the very best procedure.
It is sometimes cost-prohibitive, but may well add value to the organization. Record keeping is an essential function to a non-profit organization. There are several non-profit softwares on the market to streamline the record-keeping functions. Most have good integration with membership communication and accounting features. An organization should have a functional software, and strong internal procedures.
An institution needs to have the power to showcase itself aggressively, without having to use hyperbole or misrepresentations. Internal methods include everything from handling inbound mail, instruction of phone receptionists, income and data flow, and controls.
Inward mail procedures are imperative, provided that the person that retrieves the mail, often is not the one who takes action on bills, contributions, or critical material. Phone receptionists should be qualified to be courteous, and to be mindful of the mission of the organization and it is easy to turn for help for any kind of request which might be out of the ordinary.
Phone receptionists are significant since they often are the "face" of the particular organization. They are commonly the earliest contact that the outsider has with the organization, and the impression which can be made is valuable. Therefore, training the receptionist should be regarded as a worthwhile investment.
The internal controls on money-handling are sometimes overlooked. The assumption is that individuals are honest. Even if this assumption is in many instances correct, the need of money-handling operations goes past characterizing the money-handlers. Keeping an "honest man honest" is a single step-above having no procedures. Having the ability to successfully publicize to the outside world that money-handling methods can be found in place, and can easily be audited, is closer to the recommended.
In other words, money-handling procedures add to the integrity of the organization. Duties should really be separated. Two non-related people should be involved with every practical part of money handling. Signing privileges should be separated from reporting and data entry. No signers should be allowed to edit the accounting books, for example.
Reporting and audits have three stages of escalating integrity. An internal review shows that reports are viewed by the board of an organization and made available to its constituency. A compilation is the general review by an impartial, outside reviewer, who verifies some level of accounting integrity has taken place. An audit by an third party agency is the very best procedure.
It is sometimes cost-prohibitive, but may well add value to the organization. Record keeping is an essential function to a non-profit organization. There are several non-profit softwares on the market to streamline the record-keeping functions. Most have good integration with membership communication and accounting features. An organization should have a functional software, and strong internal procedures.
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Where do I go from here?? This PowerChurch article on church management software provides continuing information. You will be armed with important knowledge for putting in place good controls and management strategies.
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