We live in a world where things move fast and wearing multiple hats is a reality for many small nonprofit volunteers and staff members. In the mix of executing your mission, internal controls may get overlooked. And who can blame you? When faced with working on programs or doing mundane tasks related to risk management, it can be far more gratifying to serve food to the homeless rather than evaluate policies and procedures.
Here’s the harsh reality though, it will eventually catch up with you and affect your ability to do the gratifying mission based work.
So much of what we do is now online, including bill payments and purchases. Unfortunately, with that increased online activity comes with it increased risk in having your financial information comprised. Recently I’ve had a few of nonprofit clients ask me if they should get a credit card for their organization or if they should just use the debit card linked to their bank account. Before I go into best practices, lets summarize the differences.