Adjusting gifts the right way<\/h2>\n
Mistakes happen. A donor may request a partial refund because they can\u2019t attend an event, or a gift may be entered incorrectly. Adjusting gifts can involve making changes in multiple places, with little visibility into what was changed and why. This lack of transparency can cause problems for staff efficiency and nonprofit accountability.<\/p>\n
A well-designed <\/strong>adjustment process<\/strong><\/a> should:<\/strong><\/p>\n When gift amounts are adjusted transparently, reconciliation<\/a> with payment gateways, nonprofit accounting systems, and financial reports becomes far easier. Just as important, audit trails protect both the organization and the staff managing donor data. They reduce confusion, support accurate reporting, and reinforce donor trust by ensuring financial records reflect reality.<\/p>\n For example: <\/strong>DonorPerfect integrates with nonprofit accounting systems like Intuit Quickbooks Online<\/a> and Sage Intacct Fundraising<\/a>.\u00a0<\/p>\n Plus, its native gift adjustment<\/a> tools allow organizations to issue refunds or voids without overwriting original transactions. Adjustments are logged with dates, reasons, and user activity, creating a clear audit trail that supports reconciliation and internal review.<\/p>\n<\/div>\n Internal controls and separation of duties<\/p>\n Strong internal controls are the foundation of effective nonprofit accounting, helping organizations prevent errors, detect risk, and maintain financial integrity. They\u2019re designed to create systems that work even when people change positions, workloads increase, or mistakes occur.<\/p>\n Good internal controls ensure that:<\/strong><\/p>\n These controls are in place to protect your nonprofit and staff. They reduce the risk of error, prevent misunderstandings, and shield staff and volunteers from unnecessary exposure.<\/p>\n For example: <\/strong>DonorPerfect allows organizations to customize user access<\/a> in a number of ways to keep data safe, build donor trust, and boost staff confidence.<\/p>\n Nonprofits often assume their banks are enforcing the controls printed on their checks, including dual signatures, authorized signers, and approval limits. In reality, that assumption can be dangerously wrong.<\/p>\n Here are a few examples our fundraising experts have experienced:<\/strong><\/p>\n How does this happen? Quite simply, banks often do not verify signatures or enforce dual-signature requirements<\/strong>. As long as something resembling a signature is present, checks are frequently processed. Because of this, stewardship must extend beyond the bank\u2019s systems.<\/p>\n Best practices for nonprofits include:<\/strong><\/p>\n Organizations can lose track of funds over time due to inactivity, staff transitions, or weak oversight. Strong internal controls are not optional, they are essential<\/p>\n A balanced budget does not guarantee financial stability if cash is not available when expenses are due. Grant payments arrive late, fundraising is seasonal, and expenses continue regardless of timing.<\/p>\n Strong financial stewardship includes:<\/strong><\/p>\n Without careful attention to cash flow, even financially \u201chealthy\u201d organizations can find themselves unable to meet payroll, pay vendors, or respond to unexpected challenges.<\/p>\n For example: <\/strong>DonorPerfect provides fully-customizable reporting<\/a> tools to help organizations use giving patterns, timing, and trends to inform cash flow planning.<\/p>\n<\/div>\n Restricted funds are a promise to your donors.<\/p>\n Good stewardship requires:<\/strong><\/p>\n Using restricted funds improperly, even unintentionally, can damage credibility and donor confidence long after the dollars are spent. Clear policies, education, and tracking systems help ensure that donor trust is preserved.<\/p>\n For example: <\/strong>DonorPerfect allows organizations to track gifts by purpose, restriction, or campaign<\/a>, making it easier to report accurately and ensure funds are used as intended.<\/p>\n<\/div>\n<\/div>\n<\/div>\n At the board level, financial stewardship takes on a different and equally critical form. The Bernie Madoff scandal devastated many nonprofits, not just because of fraud, but because of avoidable governance failures.<\/p>\n The real lessons for nonprofit boards and investment committees are straightforward:<\/strong><\/p>\n For many organizations, a simple, low-cost portfolio of diversified index mutual funds is both prudent and effective.<\/p>\n Stewardship cannot be delegated entirely to staff, treasurers, or investment advisors.<\/p>\n Healthy nonprofits:<\/strong><\/p>\n When boards understand the finances, better decisions follow.<\/p>\n Pro tip: <\/strong>Get everyone on the same page with the Clean Data Checklist<\/a>, a free and customizable resource for fundraising teams of any size\u2014available for download below!\u00a0<\/p>\n And if you\u2019re a DonorPerfect user, you can improve your clean-up process with a personalized training, system tune-up, or data alignment session\u2014contact your Account Manager<\/a> for details!)<\/p>\n<\/div>\n Financial stewardship not only protects your assets, but also your mission and reputation. When nonprofits treat financial stewardship as an integrated process rather than isolated tasks, they are better positioned to earn trust, navigate uncertainty, and sustain their work.<\/p>\n<\/section>\n <\/p>\n\n
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<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\nManaging your nonprofit bank accounts<\/h2>\n
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Cash flow and reserves: The risk few boards see coming<\/h3>\n
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<\/figure>\n<\/div>\n<\/div>\n<\/div>\nRestricted funds: Honoring donor intent<\/h3>\n
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Board and investment committees: Lessons for leaders<\/h3>\n
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Financial literacy is a shared responsibility<\/h3>\n
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<\/figure>\n<\/div>\n<\/div>\n<\/div>\nDownload your Clean Data Checklist<\/h2>\n