Basilica of Saint Mary’s Post

Has your nonprofit taken preventive steps to mitigate the risk of fraudulent activity? Schedule a complimentary consultation https://bit.ly/3UoIMzn to discuss how I can assist your organization to identify and manage these risks. The guidance I provide is based on my 15 years working in senior financial management positions at major nonprofit organizations where I successfully implemented preventive measures to mitigate these risks.

Has your nonprofit taken preventive steps to mitigate the risk of fraudulent activity? Schedule a complimentary consultation https://bit.ly/3UoIMzn to discuss how I can assist your organization to identify and manage these risks. The guidance I provide is based on my 15 years working in senior financial management positions at major nonprofit organizations where I successfully implemented preventive measures to mitigate these risks.

Faith-based nonprofits may be subject to reporting requirements under a new disclosure rule. On September 29, 2022, the Financial Crimes Enforcement Network (“FinCEN”) issued a final rule implementing the beneficial ownership information reporting provisions of the Corporate Transparency Act (“CTA”). For purposes of the CTA, a nonprofit’s beneficial owners aren’t just “owners” in the colloquial sense. The term includes people of influence over the organization, such as officers, directors, and possibly even staff. Napa Legal’s latest blog post, written by GCP Fellow Sofia S., has the information your nonprofit needs to know about the CTA and what exemptions are available for nonprofits. Check it out here: https://lnkd.in/emY4Khj3

To promote fraud awareness effectively within your nonprofit, regular sta training, fostering an open and accountable culture, implementing financial controls, and learning from real-world examples are key strategies. This ensures the protection of resources and the preservation of trust, enabling your organization to continue your valuable work. #fraudawareness #fraudprevention #nonprofitfinance

💡 Are you overlooking something critical in your nonprofit's operations? Regulatory compliance isn’t just a box to check off—it's essential for maintaining your nonprofit’s transparency and trust with donors. Yet, keeping up with ever-changing regulations can feel like a full-time job. 🔍 Did you know that noncompliance could lead to the loss of your tax-exempt status? In fact, many nonprofits face legal penalties or reputational damage simply because they don’t have the right processes in place. How is your organization managing these risks today? 👉 Read the full article I posted earlier this week where we go in-depth on compliance challenges and solutions. #Nonprofits #RegulatoryCompliance #TaxExempt #RiskManagement #HeritageInsurance

What do coastlines and donors have in common? I was having a discussion with one of my colleagues about creating a list of donors based on a bit of a subjective level in order to send out a stewardship piece. She made the comment that there will be internal people who think that there are people missing from the list, or people who shouldn't be on the list. It made me think of the Coastline Paradox. The Coastline Paradox posits that it is impossible to measure the true distance of a coastline (and therefore get a perfectly accurate measurement of land mass). Think of a peninsula. At its basic form, it's kind of like a triangle, so you could straight-line it - but that's not accurate. So you zoom in a bit and start straightlining sections. But then you zoom in again and there's jut-outs into the water. Every time you zoom in more, there's more chaos - in fact, it has fractal-like qualities. Similarly, you can create summary lists of donors. But you will zoom in and find reasons to add people or to remove people. Even on like annual "Donors of $500+" type lists, there are questions like... do we include the donor who gave $40/month because that brings them to $480 and that's pretty close. At some level, you need to accept some inaccuracy. Each level of complexity you add has diminishing returns for the changes that you would make. You can dob "Donors and Coastlines" on your bingo sheet if you have it.

Your board has three critical fiduciary duties to ensure an organization’s well-being. They include: 1) Duty of Care; 2) Duty of Loyalty; and 3) Duty of Obedience. These duties demand an unwavering commitment to the nonprofit’s best interest. Let's talk, first, about Duty of Care. When we say "Duty of Care," we mean that the board must exercise reasonable care and diligence in their decision making. The board must be responsible for staying informed by attending meetings on a regular basis, reviewing financial statements, and understanding its operations. They ensure their decisions are in the best interest of the nonprofit. They avoid negligence by taking steps to prevent any harm to the organization. #DutyOfCare

Educating and Empowering Clients for Compliance Success! Today, I had the privilege of working with one of my valued clients, a charitable trust dedicated to making a positive impact in our community. Our session focused on the critical importance of compliance requirements for charitable organizations. Key Takeaways: Transparency: Ensuring financial transparency to build trust with donors and stakeholders. Regulatory Adherence: Understanding and adhering to relevant regulations to avoid legal complications. Financial Reporting: Maintaining accurate and timely financial records to reflect the organization's financial health. Governance: Implementing robust governance practices to safeguard the trust's assets and mission. Compliance is not just a regulatory obligation but a cornerstone of sustainable and ethical operations. It was gratifying to see the trust's leadership team so engaged and committed to best practices. #CharteredAccountant #Compliance #CharitableTrust #NonProfitManagement #FinancialTransparency #Governance #ClientSuccess #CommunityImpact #IncomeTax

Partners Jon Klerowski, CPA, ABV, CFE and Alexander K. Buchholz, CPA, MBA, CGMA and Director Brian McDonough, CPA, CFE highlight the “Five Specific Risks and Five Actions to Help Prevent Nonprofit Fraud” in an article recently published by NonProfitPRO. Read the full article to learn how to equip your organization with the necessary tools to maintain public confidence and support. Read more: https://bit.ly/3x3TZfp #PKFOD #KnowGreaterValue #accounting

Nonprofits suffer a median loss of $76,000 per fraud incident, according to the Association of Certified Fraud Examiners’ 2024 Report to the Nations. If your organization can’t afford to lose that much (and what nonprofit can?), make sure you have strong internal controls. This starts with training staffers, board members and some volunteers to recognize and report fraud. A monthly (or quarterly) review of financial statements and budget reports by your board is also recommended. And make sure you spread accounting responsibilities among several staffers. Contact us for help with internal controls. https://bit.ly/4b2Qp3p