Woman sentenced in Indiana church embezzlement case

Just because an organization is a nonprofit doesn’t mean it shouldn’t be doing all it can to manage its finances. Especially for agencies that have more restrictive budgets and intend to provide their communities with services, it is critical that internal operations run smoothly to prevent crimes before they occur.

The Star Press reported that a former administrator at a Muncie, Indiana, church was recently to fertility and weight loss clinics.

According to Managing Your Church, there are a few major ways that nonprofits can prevent embezzlement from taking a toll on their ability to serve the public. First, it is key that employees are compensated fairly, as one reason workers may misappropriate funds is that they feel they are underpaid. Another important step to take is to make sure internal controls are well-managed, and this includes not leaving just one person in charge of money.

Additionally, using audit solutions is critical. The source explained that leaders should not underestimate the positive effect internal and external audits can have on a nonprofit establishment. External audits are valuable because experts may be able to catch wind of loopholes or compliance issues that employees might not initially notice, while internal audits can be performed more frequently by staff to make sure all procedures and policies are working correctly.

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