Jitasa Nonprofit Blog

Whistleblowing & Your Nonprofit

  The importance of a whistleblower policy cannot be emphasized enough. No employee should fear reprisal, firing, or violence when working to correct the wrongdoings of their employer. If an employee knows of illegal activities or organizational wrongdoings taking place, they should feel encouraged to report any misbehavior, saving your organization from the illegal practices, fraud, and bad publicity that could occur. Below we’ll explain the importance of enacting a whistleblower policy, and provide links to resources that will help you create and maintain one.

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How to: Reconcile Your Bank Accounts

Reconciliation refers to the process of ensuring that two sets of records or accounts are in agreement. Put simply, you are verifying that what you think you have in your bank account is what you actually have in your bank account.  The simplest reason for completing reconciliation is the human component of accounting, which makes errors inevitable. Reconciling your bank accounts offers a layer of protection against loss prevention, and is crucial to ensuring the accuracy of your financial reports.

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Fraud and Your Nonprofit Organization

Fraud in the nonprofit world can have staggering impacts to your mission. As a nonprofit, you experience an increased financial risk. Due to budget size and restraints, nonprofit organizations will feel the impact of a negative incident (such as fraud) on a far larger scale than a for-profit organization. As such, instances of fraud, misstated financials, and stolen or damaged assets can have severe consequences in this sector.  An article from The Nonprofit Timesprovides statistics that could drastically impact your mission.

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Special Events: How They Affect Your Accounting & Your Donors

What is a special event? A special event tends to be larger and held annually. Your annual “Summer Golf Tournament” would be a good example of a special event. Galas, auctions, concerts, dinners, fitness challenges, contests, and sporting events can all be considered special events.  Whether you’re raising money or awareness of your mission, a special event can be an effective fundraising tool. You’ll raise money while interacting one on one with donors that share the passions of your organization.

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The Snowball Effect of Payroll Taxes

Yesterday, Nonprofit Quarterly released an article titled, “The Worst Financial Decision Ever.” Within it, author Kate Barr addressed the avoidance of payroll taxes, and how putting off the IRS can lead you down a very dangerous road. The article begins with scare tactics, a medium we use frequently here at Jitasa to impart the severity of avoiding a situation. Kate states, “Recently, a member of our staff… met a nonprofit in Minnesota to help them assess their financial situation and create a stabilization plan.

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