In today’s podcast, Alexander and Peter discuss something important to consider for nonprofits: internal controls.
The term “internal controls” is a combination of accounting processes and legal procedures that an organization should put into place in order to make sure that the nonprofit’s money is being spent for charitable purposes. In other words, it helps to guard the assets of the company and additionally shields the organization’s tax-exempt status. Today, Peter covers three suggestions for internal controls: having a full transparency policy for employees, requiring a yearly audit, and the engagement of board members in company processes.
Why should you implement internal controls? Why is it vital for board members to be engaged and interested in the workings of the organization? What is a whistleblower policy, and why should you have one? Why should a yearly audit be required, and what else can you do if your nonprofit cannot afford one? Listen to learn more.