Holbrook & Manter Partners with United Way to help Local Organizations Prevent Fraud
You lock your doors when you leave your car in a busy parking lot. You have a security system for your home. But sadly, many nonprofit organizations do not have enough safety measures in place to protect themselves from fraud or internal theft. Over the last year, several local entities fell victim to embezzlement by volunteers or staff.
So last week, United Way put on a seminar to help local charities guard themselves from wrongdoing. More than 100 representatives of local organizations packed the Union County Service Center to hear presentations from Union County Prosecutor Dave Phillips, Holbrook & Manter, and the State Attorney General’s Office.
“The most common issues that I see are poor oversight by volunteer Board Members and a lack of internal controls,” said Larry Havens, a CPA with Holbrook & Manter, which sponsored the event. “Board members come from all walks of life and they bring valuable skills and passion to the organizations they serve. But often, especially in smaller organizations, there is very little training for Board members to understand their responsibilities and fiduciary roles.”
When theft occurs, more than money is lost. The public’s trust in that organization also suffers, creating additional issues for the organization to overcome.
The speakers detailed ways local 501c3 organizations such as charities, PTO’s, and booster clubs can create checks and balances for how money is handled. They also discussed how to equip volunteer leaders with the instruction they need to improve their abilities to oversee an organization’s finances.
“We are very grateful for the new information we learned,” said Steffen Baldwin, Executive Director of the Union County Humane Society. “Fiscal accountability is everything for nonprofits that survive on donations!”
Please see the United Way of Union County’s E-newsletter at the following link: