Proper documentation and accurate recording are key financial risk management strategies to consider for your Nonprofit Organization. It is important to remember that many times that state and federal law will not recognize an event or transaction unless one can provide proper and accurate documentation. Thus, for any Nonprofit organization it is important to establish accounting routines to ensure that no false transactions are processed and that all valid transactions are recorded for the correct amount and accounts. Some strategies include:
(1) requiring that all vendors and consultants submit detailed invoices for goods and services provided to your nonprofit,
(2) requiring receipts for expenses of more than $5 for reimbursement, and
(3) demanding documentation is attached to check request forms.