Protect your funds with segregation of duties, approval limits, dual control, reconciliations, and fraud reporting. Generate a branded PDF or Word document in minutes — free, no sign-up.
Create your policy →Put the internal controls in place that protect your funds and the trust donors place in you.
governance policies the IRS Form 990 asks about by name
Source: IRS Form 990, Part VI
of annual revenue a typical organization loses to fraud
Source: ACFE Report to the Nations
U.S. nonprofits the IRS expects to follow sound governance practices
Source: IRS
It means no single person controls more than one key phase of a transaction — authorizing, holding the money, recording it, and reconciling. Separating these duties is the single most effective control against error and fraud.
Use compensating controls: have a board member receive and review bank statements directly, require dual signatures on larger checks, and have someone independent of the bookkeeper review reconciliations. This template includes that small-organization guidance.
It depends on your size, your funders, and your state law. This policy directs the board to arrange an audit, review, or compilation appropriate to the organization, and to have an independent committee oversee it.