Managing accounts and finances in NGO
In accordance with local laws and regulations in most countries, all registered NGOs are required to maintain a recording system and to submit all forms of financial transactions undertaken for the purpose of implementing projects and running their own organization. Since money is an integral part of an organization’s management, it is always a good idea to keep the ‘Monetary Policy’ on the procedures to keep the accounting system running, transparent and easily accessible.
Following a formal process and maintaining an NGO’s fiscal policy is a strong indicator of the good health of the organization. Even donor organizations would be more than happy to provide quick funding to those non-profit organizations with well-functioning financial management principles. The exercise or management literature in conducting daily financial transactions is a powerful tool to demonstrate good governance, transparency and organized management of the NGO. Alternatively, such programs enable tracking of NGO expenditures.
But how can NGOs develop such a book of accounting and financial management? What are the various fundraising processes for an NGO? What different types of programs should account for NGOs follow? Is there a sample policy in NGO financial management?
We provide a detailed description of how financial systems work for NGOs and how NGOs can use this oversight function to improve their fiscal policy for effective organization management, meeting local law requirements and making better organizational development finance.