NPO Accountants expands services to Central Illinois, helping nonprofits strengthen stewardship and accelerate sustainable growth

A certified public accountant that works with nonprofits says if they’re getting public money, they should have internal controls to avoid potential fraud, waste or abuse of taxpayer funds.

Nonprofits rely on funding support from the public. Fraud often starts as a tiny spark. Whether you serve as a board member or staff member, understanding common fraud schemes and internal risk areas is essential. Here are five red flags nonprofits can’t afford to ignore. 

Chances are if you serve on a nonprofit board and don’t understand something related to the financials, you’re likely not alone. Even if your background includes finance, nonprofit accounting is different. These differences might be major or subtle nuances. If you see something, say something. Don’t be afraid to ask questions. Others on the board are likely wondering the same thing. Here are five red flags to watch out for:

If you’re a business leader, you’re probably involved in your community. Serving on a nonprofit board is a great way to share your time and talent. Perhaps someone asked you to join a board. Don’t feel obligated to say “yes” on the spot. Take a beat and gather information to make sure it’s a good fit for both sides.

October is Financial Planning Month, a perfect time for nonprofit boards and leaders to treat their organization’s finances with the same care they give their personal and business planning. Leaders should help guide the organization’s financial planning efforts to ensure it has sufficient financial resources to operate. This includes maintaining healthy cash flow, securing appropriate credit lines and planning for the future. Here’s how:

When nonprofit leaders call or are referred to me, the first question I often hear is: “What are the best financial/accounting practices for nonprofits?” My usual reply is honest and direct: “Where should I begin and how much time do you have?” A complete answer can take hours, but there are high-impact practices that every nonprofit leader should adopt right away. Below I lay out the top, practical steps I advise executive leaders to prioritize. These are written for busy executives who need clarity, not theory.