5. Best Practices Resources

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Several resources exist for organizations seeking information about best practices in the nonprofit sector.  The Secretary of State’s office strongly encourages organizations to consult these resources and incorporate best practices into their organizational culture.  Colorado nonprofits are encouraged to download a copy of the Colorado Nonprofit Association’s Principles & Practices for Nonprofit Excellence in Colorado.

Other best-practices resources:

Independent Sector’s Principles for Good Governance and Ethical Practice (PDF)

Center for Nonprofit Excellence - Standards for Excellence Institute training

Better Business Bureau Wise Giving Alliance - Standards for Charity Accountability

Internal Revenue Service - Governance of Charitable Organizations

 

Establishing best practices around financial transactions is critical if the organization is to avoid becoming a victim of fraud.  Board members and officers should proactively look for areas of vulnerability in their organization and establish strong internal controls, such as an anonymous method for reporting problems (e.g. a fraud hotline), conducting background checks on new employees who will have access to cash and other liquid assets, requiring two signatures on each check, having someone other than the treasurer review the monthly financial statements, and having a CPA conduct an annual audit.  Current best practices suggest that the organization should have a strong board of directors and an audit committee to prevent financial mismanagement and other fraud within the organization. 

Fraud prevention resources

 

 

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