Nonprofit Insurance Program

Protect your Financial Resources

By Alexa Connelly
October 03, 2012

Financial donations keep nonprofit organizations are able to keep its doors open, which is why it is important to manage and protect these resources. Financial resources include money, goods, and services. The risks with financial resources means a loss in any of the three categories which can cause a huge impact on a nonprofit that relies heavily on these donations. The results of this may include eliminating staff, reducing hours of operation, adjusting the services offered to clients, and worst of all, closing your doors. The loss does not only impact your nonprofit financially, but also can give your nonprofit a bad reputation with negative publicity. Financial risks that may affect your nonprofit include fraud, investment risk, misuse of funds, tax liabilities, loss of tax-exempt status, unscrupulous or inappropriate fundraising, and physical assets. Every nonprofit should enact policies and procedures to control access to and use of its financial resources through general management controls and accounting controls.

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