In addition, some nonprofits may have warehouses of supplies whether it is a food bank, soup kitchen, sports organization or mentoring program. The loss of the supplies could have a devastating effect on the organization's mission. The best protection is systems and procedures that limit the access to these assets. Computers contain not only a wealth of information but also confidential data. Also, protect the organization's supplies and merchandise.
Many organizations lose money on merchandise sales due to the lack of inventory and access controls.
One key to controlling financial management risks is the development and use of effective internal controls. Every nonprofit needs policies and procedures to control the access and use of its financial resources. The techniques involve general management controls and accounting controls. General Management Controls General management controls consist of the board's and senior management's responsibilities for establishing the proper oversight of financial operations. The board should require clear and informative financial reports and statements on a regular basis.