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Are You Covered? Another Important Audit for Nonprofits
Just as important―and some would say more important―as a fund development audit, is a risk management audit.
Nonprofits are governed by many of the same laws and liabilities as for-profit businesses, and some additional ones related to tax-exempt status and charitable donations. Whether newly-formed or operating for years, many nonprofits neglect the business side of their organizations because they “don't know what they don't know” or are concentrating so hard on doing their mission-driven work. Especially vulnerable are long-time all-volunteer organizations.
If your organization hasn't conducted a risk assessment or audit in the past year, or ever, now is the time, before a crisis occurs. Like a fund development audit, it starts with an evaluation of your organization’s governance decisions, policies, and insurance coverage to determine which ones are working for you or against you or missing all together.
On July 15, Dan Willson of Lighthouse Agency will lead our Roundtable discussion on the risk management side of operating a nonprofit and answer your liability exposure and coverage questions. He will provide a checklist of items to review for a variety of situations so you can start an audit immediately.
Additional resources are available at the Nonprofit Risk Management Center website which, this summer, is focusing on employment law issues for nonprofits. A big question being covered is: Are summer interns considered employees under state and federal laws? Visit www.nonprofitrisk.org for the answer.