Be vigilant this holiday season!
While most nonprofit organizations collect donations year round, you likely experience an increase in gifts during the holiday season. Donors feel an increased sense of goodwill and generosity, but unfortunately, the risk of theft rises along with the extra money.
Nonprofits, along with all other companies, should follow good business practices throughout the year. Don’t let your own sense of goodwill convince you to relax your policies, putting your organization at risk for embezzlement.
Follow these simple risk-management steps to ensure your donors’ money can be used as it was intended:
- Designate two, unrelated people to count donations and record the total.
- Deposit funds in the bank as soon as possible, ideally the same day they’re collected.
- If you don’t use a remote deposit system, or if you receive cash gifts, two people should be present when transporting funds to the bank. Even if you do make deposits from your office, assigning a second person to assist adds a wise safeguard.
- If you’re unable to make a daily deposit, store the money in a safe or locked cabinet within a locked room. Keep your storage location secret from everyone who doesn’t handle the money.
Use these steps as a reminder to conduct audits of your financial systems and practices at least annually. Ensure your rules are being followed, and identify areas that could be improved.
For assistance and guidance, our team at Online Stewardship Accounting and Consulting is available to help. Contact us at Lynn@onlinestewardship.com or 904-398-4747.
