Nonprofit organizations can be especially prone to scams, both internally and externally. Because they tend to be filled with do-gooder types, they’re often taken advantage of by people who perceive them to be easy targets. They’re frequently also small, making them potentially easy targets for people who take advantage of the nonprofit mission to create good in the communities they provide service to. Fraud risk in nonprofits A typical organization loses around 5 percent of annual revenue in fraud.
Just like for-profit companies, nonprofits have access to a lot of private information. From IP addresses to personal phone numbers, there’s a lot of data floating around, and people are more aware of it than ever. While collecting data can be expected, your supporters want to know that you’re serious about protecting their information. You want to be seen as trustworthy and secure by donors, volunteers, and employees alike, which means giving some real thought and attention to your privacy measures.
Before the United States was thrust into a global health pandemic, you may have been planning to meet with your accountant. For business or personal reasons, you’d likely begun gathering documents, double-checking numbers, and searching your records for those last expenses. And suddenly, the world became an unfamiliar place. The tax appointment you’d scheduled six months ago was up in the air. If you had a good nonprofit accountant, they probably reached out with you to plan.
Tax Day, even when it moves, still carries with it a sense of impending doom--although it shouldn’t, if you’re following the rules. There’s a lot of build up before tax returns are due, and after, it can be easy to sit back and forget about this important part of your nonprofit strategy. Sadly, the need for sound financial practices does not end on July 15. If you’re feeling the need to put your financials on the backburner, resist that urge--here are a few ways you can set yourself up for success after Tax Day.
Like any company, nonprofits require excellent leadership, which is especially important during times of immense change. Strong leaders possess the ability to guide organizations through good times and bad, no matter their experience. In fact, so little of leadership is actually about whether or not a leader has been there before. Good leaders do share some simple characteristics though, no matter where they’ve come from. You can recognize a good leader by looking for a few things--make sure they: