In January 2018, the Boston Globe published a story about a COO who embezzled approximately $108,000 over 18 months from his employer, a nonprofit serving the homeless. Outsourced CFO services could have put a stop to this theft.
“The money he stole from us could have prevented 100 families from going homeless,” the executive director calculated. The article goes on to say that over the past seven years, over 1,000 tax-exempt organizations have “reported theft, embezzlement, or other diversions of assets” to the IRS.
Why does the nonprofit sector seem to be regularly the victims of fraud? Often, fraud is difficult to detect. But the article highlighted something that we see quite regularly: nonprofit executives are “passionate about their causes but may not have a background in finance.” You can read the full story here.
Outsourcing your accounting protects you from fraud by adding an extra layer of process control and an extra set of eyes – professional eyes – on your financials.
When money is stolen from the organization, the most immediate effect is that your constituents and your mission suffer. But there is the possibility of worse and more lingering effects: damage to the organization’s reputation and subsequent loss of future funding.
Outsourcing with Unalp CPA Group ensures that your financials are scrutinized by professional accountants.
Executive Directors of nonprofits owe it to themselves, their teams, and those they serve to explore outsourcing as a means of safeguarding their funds. Outsourcing is budget-friendly and gives your organization the needed level of professional accounting attention and implementation of nonprofit accounting best practices.
The good news is that proper attention to your day-to-day accounting activities by Unalp CPA Group, not only serves as a preventative measure against fraud, but will arm you with better financial information to make data-driven decisions as well as seek new sources of funding.
Outsourced CFO Services
Protect your nonprofit from fraud with outsourced CFO services. You’ve worked too hard to allow precious funding to fall into criminal hands. Protect your funds, your reputation, and the needs of your constituents. It’s easy and affordable with outsourcing.