Nonprofit organizations are more vulnerable than ever to fraud or errors in the organization’s financial statements. With employees, management, and board members focused on helping people in the communities the nonprofit serves, time and attention to key financial internal controls has more than likely been refocused to the organization’s mission and purpose.
However, these are times when internal controls are more important than ever to have in place and operating effectively. Fraudsters, scammers, and even an organization’s trusted employees—yes, it’s hard to imagine, but it happens!—are looking to take advantage of distracted organizations. Here are a few key internal controls your nonprofit should have in place.