Not-For-Profits: Starting 2011 off on the Right Foot
As we approach the New Year and turn our focus towards 2011, it's hard to believe how quickly the past year has flown byâ¬Â¦ and how much of our unfinished to-do list has gone with it. With only a handful of days remaining this December, now is the perfect time to get organized and start off the New Year on the right foot.
With the increased scrutiny of nonprofits and a call for increased transparency by donors, it's extremely important to have your accounting books in order and related policies in place. The following tasks are just a few of the items that Stone Carlie suggests you should consider. Addressing these, along with additional issues on your to-do list, will result in the year-end process being much less painful for you than in years past. Let's start crossing these compliance issues off your list:
- Ensure that all accounting and company policies are in writing and approved by the board
- Review the allocation of expenses between program service, management and fundraising for proper reflection and provide guidance to the internal staff
- Document all meetings of the board and committees with the authority to act
- Gather all necessary data to file all required Form 1099s and subsequently file those required 1099s
- Identify all new programs and ascertain all costs and revenues are properly being captured
- Gather all necessary information required for grant reporting and filings
- Identify all family and business relationships amongst all insiders that may need to be disclosed
- Ascertain documentation is prepared to support classification of workers as independent contractors
- Update your employee manual to reflect all policy changes
As board members continue to step down and be replaced with new faces, it's important to keep in mind the importance of board governance and the roles and responsibilities those board members have. A strong board who fully its organization and the respective roles of its members will only help an organization in the advancement of its mission.