NGOs are expected, like for-profit organizations, to build and maintain compliance programs and to understand the compliance risks they face and manage them appropriately. Exemplify can provide pro-bono help to NGOs: humanitarian, development, advocacy, and more.
In light of the compliance challenges experienced by some NGOs, donors and regulatory authorities are increasingly focused on ensuring that these organizations have their ethics and compliance house in order.
While there is no one size fits all when it comes to compliance programs (because risks differ), there are certain fundamentals NGOs should have in place such as a code of conduct, governance best practices and appropriate policies and procedures, particularly for those operating in complex environments, in the areas of fraud prevention, protection, anti-bribery and anti-money laundering. These policies would include for example, mandatory due diligence on any third parties who may interact with government officials on behalf of the NGO. The program itself should be subject to supervisory board oversight.
Because of their not-for-profit nature, most NGOs heavily rely on fundraising to achieve their objectives and fulfil their missions. Thorough due diligence of third party relationships, including potential staff, is key to ensuring compliance. NGOs should have the right processes in place to ensure they know the origin of the funds donated and to make sure funds are finally used as intended. In today’s world, NGOs are under increasingly close scrutiny, yet another reason for NGOs to be ahead of the game with their ethics and compliance programs. In parallel, accurate and transparent record keeping practices will help any NGO to demonstrate high standards of compliance at all times.
If you would like help with your compliance program, particularly if you are a small NGO, please contact us. We are looking to find ways to apply our decades of senior level compliance experience in the corporate world for the benefit of organizations in the non-profit sector.
Contact us now to learn how we can help.
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