Actual problems of internal control of statutory activities in non-profit organizations
Abstract The systematic active development of the third sector raises the question of increasingthe level of public trust on the part of stakeholders in the activities of non-profit organizations. A bona fide non-profit organization must ensure a positive business reputation, achievement of statutory goals, and long-term continuous operation. One of the tools to ensure favorable conditions for effective and long-term work is the availability of an internal control system for the organization`s activities that monitors the implementation of the financial plan, ensures reliability, validity of management decisions and guarantees the fulfillment of obligations. The article describes the current problems of the functioning of the internal control system in organizations of the non-profit sector and forms proposals for their solution.
Keywords: non-profit organization, internal control, risks, information, control environment, reliability.
Highlights:
♦ the content of the internal contour of a non-profit organization, which includes corporate culture, regulatory, information, financial and control environment, is investigated;
♦ the current problems of the functioning of the internal control system in non-profit organizations are analyzed;
♦ the effectiveness of the internal control system is achieved by improving processes, structuring and clarifying the mission of non-profit organizations, expanding and scaling up funding sources, clarifying target groups of beneficiaries, conducting transparent business activities, building trust on the part of employees, volunteers and stakeholders.
Irina A. Svetkina - Samara State University of Economics, Samara, Russia