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Definition: Audit1An audit is the highest level of assurance that can be provided on financial statements. An audit provides reasonable assurance that the entity’s financial statements present fairly its financial position, financial performance and cash flows in accordance with the applicable...
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Definition: Succession Plan1A succession plan sets out how potential departures of key personnel would be dealt with in the short-term and long-term through internal or external candidates. It could define key competencies, identify pools of talent and outline how current staff members are being...
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Why is it important to have a succession plan for the board chair and committee chairs? The board of directors of a charity or nonprofit is responsible for board succession planning.1 Planning for succession to the positions of board chair and committee chairs minimizes disruption as directors...
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Example Ways of allocating the cost
A charity's newsletter promotes an event
The newsletter's cost could be allocated based on ...
the number of pages used to promote the event compared to the total number of newsletter pages (for example, if a charity publishes an...
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Why is it important for volunteers to be given regular opportunities to offer and receive feedback? Feedback is a “direct response, positive or negative, to an activity performed in the interest of the organization.”1 Providing feedback to volunteers is most effective if it is immediate, ongoing,...
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Why is it important to honour donors’ and prospective donors’ requests to limit the frequency or means of contact or to discontinue contact if requested? Alberta’s Charitable Fundraising Act (Section 50) states that if a person requests to not receive further solicitations or to be removed from...
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Why is it important for financial statements to be received and approved by the board within 6 months of year end? Nonprofit and charitable boards of directors are responsible for overseeing their organization’s financial affairs. While directors do not need to have a lot of expertise related to...
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What is risk? Risk is anything that could prevent a nonprofit from achieving its mission.1 An organization’s risks can be considered in terms of its four primary assets:1
People (board members, volunteers, staff, clients/participants, donors, etc.)
Property (buildings, facilities, equipment,...
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Why must the board consider development oppurtunities for potential board chairs and committee chairs?Providing developmental opportunities for board members is a valuable practice1 that represents an investment in individual board members, the effectiveness of the board as a group, and the impact...
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Why is it important to have an anti-harassment policy? It is incumbent upon charities and nonprofits to provide an environment that is free from harassment for all parties concerned. Developing and adopting an anti-harassment policy helps to ensure that staff and volunteers understand their...
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