Fall 2015 Issue of Horizons

requirements. These not-for-profit specific risks can relate to reputation, transparency, conflicts of interest, fundraising and the conduct of volunteers and employees who represent your organization. How does an organization implement a strategy to address these risks, incorporate the core value of ethical behavior and at the same time utilize little or no financial resources? Apply a strategy to CARE, as outlined by Jennifer Elder, CPA and consultant, as well as speaker at the 2015 AICPA Not-for-Profit Conference. CARE is summarized as follows: Commitment Make a commitment at all levels of the organization, starting with the board and continuing all the way to the volunteers, that each person will be held accountable for creating a culture that encourages ethical behavior. Everyone should also commit to establishing a high integrity workforce with a common goal of achieving the organization’s vision and mission. Even though it can require a significant investment of time, there may be little cash outlay involved in applying key policies and procedures which focus on making business decisions in an ethical environment and as a result, help prevent fraud. Aids There are a number of aids that will provide your employees with structure and common goals. That structure may include: ∙ Code of conduct ∙ Background checks C ommitment, A ids, R eview, E xample

Key Takeaways from the AICPA Not-For-Profit Conference Top 10 Challenges, Risks and Best Practices

1. Budget for a surplus.

2. Consider adding an IT specialist to the board. Security risks are prevalent, especially relating to cyber security, security of private data collected from donors as well as from recipients of social services. 3. Include a provision on each pledge card that provides acknowledgment by the donor that a designated percentage of the donor’s gift may be utilized for administrative purposes.

4. The value of background checks cannot be understated.

5. Develop methods to effectively measure and report program outcomes and impact.

6. Stay current on compliance matters, especially those involving funding.

7. Leverage opportunities to coordinate social services in collaboration with for-profit entities.

8. Manage whistleblower tips and complaints and triage reported conflicts of interest.

9. Consider how to retain high performing employees at your not-for-profit organization.

10.Design a succession plan.

A code of conduct complements your organization’s other relevant policies and procedures; and collectively, those items define a solid structure for an ethical workplace environment. The code of conduct serves as a communication tool to employees by providing guidance in matters of employment and volunteer workplace practices including, but not limited to: ∙ Equal opportunity ∙ Harassment

∙ Ethics training ∙ Ethics hotline ∙ Internal controls

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