How to increase transparency in NGOs
Nowadays, volunteers and donors demand transparency out of non-governmental organizations (NGOs). It is obvious that donors often encounter so many leaders mismanaging their funds so they are gazing upon other NGOs with the same skeptical eyes. As a result, transparency becomes an extremely important factor that allows every NGO to maintain a trustworthy place. It doesn’t only ensure compliance but it also gives your partners trust in the mission they are supporting. Tracking the path of each dollar that flows in and out of your non-profit should be achieved with open accounting practices.
Here are three ways to increase transparency in NGOs
- Standardized Financial Procedures
Look around. Does your organization use a single set of financial procedures? Does each team have their own method of operating? You add a significant amount to your administrative costs when you have to work with multiple applications and data resources. Standardized processes will get everyone on the same page with accounting. You have the information required to stay transparent with everyone who wants or needs access to your finances.
2. Donor Reporting
You will definitely need this when managing an NGO. If someone asks a question about your spending in certain areas, how can you process the request in a reasonable time frame?
Manually sifting through information takes resources that could be better spent furthering your mission. Your donors need reassurance that they are contributing to a worthy cause, however, it is easy to be skeptical if your organization spends weeks putting together a report. It results in worry of whether your non-profit is being managed properly if a simple donor report takes a significant amount of time to produce.
3. Get your information updated in time
This means you need a team to regularly update financial information. Large donations and expenses can significantly change this situation, and providing inaccurate numbers could have far-reaching effects on your entire organization. Getting updated means reflecting the latest data.
DatEat is grateful to provide NGOs and NPOs with a solution to financial transparency. It is blockchain technology. With DatEat, every transaction is recorded, encrypted on the decentralized platform, without being altered. This means you can easily manage and track every flow of your organization. Easy, cost-saving and labor-saving. Blockchain is now considered the most effective way to tackle the problem.
When you implement the consistent and efficient procedures with the right solutions to promote accounting transparency in all parts of your organization, you will foster stronger relationships with your donors and volunteers.
Should you have any questions, please let us know at https://dateat.io/
