16 Steps to Prevent Nonprofit Embezzlement


  1. Crista Thompson

    What can I do if our Sports Club Treasurer is trying to convince the board of
    Directors that we don’t need all the receipts for reimbursement?

    I see this as a huge red flag

    1. Cyndi Meuchel

      Crista, great question! If your group is a registered tax-exempt organization, this link might help.

      If you’re not a registered tax-exempt organization, you will still need to file with the IRS AND pay taxes on any revenue that your group brings in.

      Regardless, any organization (for profit or not for profit) must keep books and records to show that it complies with the tax rules. That means keeping everything from paid bills to deposit slips to receipts. Here’s what the IRS has to say, “Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. These documents contain the information you need to record in your books. It is important to keep these documents because they support the entries in your books and on your tax return. You should keep them in an orderly fashion and in a safe place. For instance, organize them by year and type of income or expense.” I took that from this page on the IRS website.

      If I were in your shoes I would review my group’s bylaws & articles of incorporation to see what they outline. If there’s nothing indicated in those then it might be time to update them. It’s also VERY important to conduct an annual audit or financial review of your books. These are done as a verification of your books, not necessarily to find something someone has done wrong. A review like this would require those documents (such as receipts) to support any transaction or entry in your books.

      If you download our free Treasurer’s Compass here, you’ll find info & instructions on how to conduct an annual financial review.

      Perhaps 2023 is the year that you help your group put systems & structures in place to strengthen your club.

      Good luck!

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