Non-Profit Organizations (NPOs) and Non-Governmental Organizations (NGOs) have their own unique struggles. For a successful NGO to flourish, staying compliant and reporting funds accurately for every transaction is crucial. They have to watch every penny going out and coming in very carefully and the monitoring process is critical.
You must keep your staff and volunteers busy and happy, all the while keeping the money flowing into the organization. You keep records for the benefit of your donors and track hours and program results. As a nonprofit or NGO, when it comes to spending money you are in the spotlight. You must account for how you are spending money as well as how you manage the retention of your documents for the auditors. Failure to do this is damaging for the non-profit.
For-profit institutions rely on consumers paying for products and services to keep their doors open and functioning at maximum capacity. In the world of nonprofit organizations where donations keep services flowing, every dollar must be accounted for.
With limited funds and budgetary constraints, properly documenting every aspect of your operation is a challenge. Providing documented proof of every transaction that has occurred, with software that has records management and automatic audit trails, is the best way to ensure compliance.
Non-profit organizations work with limited resources. Your survival depends on funding from government agencies and private foundations. Unfortunately, due to a lack of staffing, money is often wasted or used inefficiently. When the system includes compliance functionality, it adds legitimacy to your organization, making it more likely for funds to continue to funnel into your mission. It also provides less anxiety for potential supporters as to where their money is going. Having this system in place is a powerful safeguard from those less trustworthy employees trying to exploit a good cause by pocketing funds.