As an accountant dealing with a non-profit, you probably realize that you are working with a somewhat “different animal”.  They are trying to help people or a specific cause.  They are focused on philanthropic projects and probably have less attention toward the financials, except where it can further their cause.  They are less business oriented.  Here are some ideas about how to work with these organizations and the folks who run them.

Board of Directors
The Board is probably composed of 3 or 5 members.  They should be unrelated to each other, but in reality, they probably are friends or very good acquaintances.  Each of these individuals probably has a passion for the goals of the non-profit.  They may or may not have a financial background.  They should have a wide range of skills and experience and hopefully are good at fundraising.

It may be your job as a financial advisor to liaise with this group and explain the realities of reporting and fiscal responsibilities.  Although you may appear to be the naysayer on many projects, you will need to find common ground and help them understand you have the best interests of the organization at heart and are doing what you can to help them achieve their goals.

Projects
The everyday people are looking at the big picture.  They are trying to combat an illness, save the oceans, or feed the hungry.  As an accountant, it is your task to help them achieve their goals in reasonable chunks.  You have to show them how the projects impact their cash flow as well as their investments and how each project has an effect on the financial stability of the organization and the good deeds it is trying to accomplish.  By helping them tackle achievable goals, they can realize their work is having an impact on the problem, but that it won’t be solved in one big bite.

Multi-Year Plan
In that same vein, you can help establish a plan that spans a number of years with reasonable goals.  This should relate to fundraising and assets as well as the ultimate goal of the organization. 

Audits
It is a fact that audits are required.  The office personnel may need to be reminded about gathering all the information necessary in a timely manner.  Don’t let the calendar get ahead of you.  If you are using an independent auditor, work with them toward fulfilling all the obligations.  If you are the auditor, be persistent and detailed on the data you need.

Tax Filings
It is critical that all required filings be complete and on time.   

Controls
You can help with the internal checks and balances to avoid fraud and help keep everyone associated with the organization above suspicion if numbers don’t exactly match.

In the long run, it is important to emphasize that the accountant is part of the team and one of the “good guys”.  The role of accountant is every bit as important as the volunteers who are helping the cause. 

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team