The Risk-Aware Nonprofit

nonprofit accountantAs an executive leader at your nonprofit organization, you are often tasked with determining the strategic vision of your nonprofit. The most recent economic downturn focused the attention of many individuals on fluctuations in financial markets, and lawmakers are likewise taking action to make sure that companies and nonprofit organizations take more steps to prepare for the risks that they are taking with their investments. The Securities and Exchange Commission (SEC) now requires for-profit companies to disclose who in their advisory boards and on their senior staffs oversees the various risks that could potentially affect their companies, and establishing procedures to monitor the risks that your nonprofit undertakes could be essential to ensuring the financial stability of your nonprofit organization as well. If you need assistance with creating procedures to understand and prepare for the financial risks that your nonprofit organization faces, contact an experienced nonprofit accountant in Northern Virginia today.

How to Monitor Risks

One of the most effective ways to review the risks that your nonprofit may incur is to adopt an Enterprise Risk Management perspective. This will allow you to account for the various risks that your nonprofit organization may encounter that could imperil financial stability. It is important to consider all possible risks, throughout the entire organization. At Gurman & Company, we can help you determine how different risks can affect the stability of your nonprofit.

Financial Risk Monitoring

Assessing the risks in your financial holdings and monitoring the performance of the investments that help to fund your nonprofit are essential to furthering the organizational goals of your nonprofit organization. Market fluctuations not only affect the performance of your financial holdings, but also the financial stability of individuals who support your nonprofit through contributions.  Your nonprofit may reap essential benefits by proactively reviewing its financial portfolio because looking at how your individual investments are performing relative to the market can help you prepare for upcoming changes to your organization’s finances. By reviewing how your investments and holdings perform, and by looking at the factors which impact their performance, you may be able to determine maneuvers that will positively impact your bottom line.

Risks to Service Delivery

If the function of your nonprofit is imperiled by any person or external factor, you should take steps to prepare for the threats. If you cannot deliver the services that your nonprofit specializes in, you weaken the ability of your nonprofit to fulfill its function. Financial constraints can restrict service delivery as well, but a qualified nonprofit accountant in northern Virginia can help you prepare to accommodate risks.

Creating Strategies to Address Risk Areas

In order to prevent risks that will impact your nonprofit’s ability to achieve its goals, or to maintain financial security, your executive board should develop specific strategies aimed at addressing a breadth of risk factors that might adversely impact your organization. An experienced nonprofit accountant in Northern Virginia can help you create financial plans to ensure fiscal health for your foreseeable future. Contact us today to begin planning your path to proactive risk aversion.