Control Implementation for Growing Non-Profit Organizations

by Austin Taylor, MBA, Staff Associate II

Posted on June 29, 2022

Growth is a great sign for non-profit organizations, but sometimes it can be difficult for an organization’s procedures and controls to keep up with rapid change. When faced with a substantial increase in activity, it is important to evaluate the state of the organization to ensure it is capable of handling the increase in a sustainable way. Here are a few tips to consider when experiencing growth.

Technology

As a non-profit organization grows, it is important to evaluate if increases in activities can be supported by the organization’s current systems in place. Many organizations find it difficult to follow procedures designed back when the entity was experiencing a smaller volume of transactions.

The following are some controls over information technology that could be considered for implementation as a non-profit organizations grows:

  • Utilization of digital signatures or other forms of authorization can be a great way to cut down on the time it takes to obtain approvals for various processes. Ensuring that access is restricted to proper individuals is vital for this process to be utilized to the best of its ability.
  • Digitalizing and scanning of files makes information vital to the organization available to more individuals and can allow quicker and more efficient use of data along with more manageable record keeping.
  • Establishing an online or server-based program for day-to-day activities such as processing payroll or approval of invoices is a great way to make periodic tasks more consistent and efficient.

Segregation of Duties

One of the great opportunities that presents itself when an organization experiences growth is the ability to bring on additional personnel to alleviate duties between key employees.

The following are a couple controls over segregation of duties that can help growing organizations utilize their personnel more efficiently and effectively:

  • Using two individuals to perform joint tasks can be a great oversight tool and help reduce the risks of fraud or error.
  • Similarly to above, training multiple employees on key tasks can help ease the burden when employees are on leave.
  • Implementing more review procedures can also be considered when an organization is growing. Hiring more management level employees can alleviate the review duties placed on a singular business manager or accounting specialist.

Growth is a positive sign for most organizations and can bring both new opportunities and challenges to any office, but implementing the above controls and processes is a great way to help guide your growing organization in a manageable and sustainable way.

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