December 29, 2010

How many nonprofits get robbed blind, deaf, and dumb.

It's encouraging that so many current conversations are focused on the future of philanthropy, integration with social media, and non-profit horizons. In this last week of 2010, amid the postal flurry of end-year fundraising appeals, it's also worth remembering the little things that make us worthy of all those big thoughts. (CONTINUED)

2. Since non-profits are accountable for donor dollars, most of which are one-third subsidized by tax write-offs from the federal government (and therefore absorbed by all taxpayers), there need to be serious, results-oriented safeguards against theft by employees, officers, and grantees. Cash transactions and reimbursement for expenses are the easiest ways to steal charitable dollars. Where expenses cannot be pre-paid or billed directly to the sponsoring organization, ORIGINAL receipts and ticket stubs or boarding passes should be mandatory. Corporate credit cards sound glitzy, but they prevent anyone from walking away with unreported cash refunds. Instead of REIMBURSING for airfare, flights should be purchased either with the corporate card or through the organization’s own travel agent, so the money stays between the organization and the vendor.

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