August 2011
In this issue:

News You Can Use
Upcoming Trainings
Bulletin Board
Success Story

 

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Dear Friend of NEW,

See our newest monthly entry in NEW's Notes -- Success Story.  Each month we'll offer a quick highlight of how a  nonprofit benefited from having a relationship with NEW. If you don't know us too well, we encourage you to call, email or come in to learn more about our services.

We'd like to share your success story too.  Let NEW's Notes readers learn about advantages to working with the NEW Center, BoardConnect, npServ or ResourceConnect programs. Drop us a line at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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IT support, board development, information resources, office/meeting space. What can NEW do for you? Call 734-998-0160 or 313-887-7788.

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Is your organization represented in the Directory of Nonprofits in Southeast Michigan?  Add a profile. See "submit new organization."

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Schedule an appointment to use the Foundation Directory Online at either of NEW's offices:
Detroit 313.887.7788 x300
Ann Arbor 734.998.0160 x218

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Nonprofit Finance 1.03

Internal Control -- Segregation of Duties

By Edward Allon

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One of the basic objectives of good fiscal management is internal control. This is key in the nonprofit world, where the board of directors has a fiduciary responsibility to ensure that the organization is run with proper controls and checks in place.
 
The proper segregation of duties, though basic, is by far the most potent tool that leadership has to prevent fraud and mistakes. This separation ensures that errors or irregularities are prevented or detected on a timely basis by employees in the normal course of business.
 
Segregation of duties provides two benefits:
• A deliberate fraud is more difficult because it requires collusion of two or more persons; and
• It is much more likely that innocent errors will be found.
 
At the most basic level, segregation of duties means that no single individual should have control over two or more phases of a transaction or operation. Management should assign responsibilities to ensure a crosscheck of duties.

If a single person can carry out and conceal errors and/or irregularities in the course of performing their day-to-day activities, they have generally been assigned, or allowed access to, incompatible duties or responsibilities. Some examples:
 
An Employee who… Should not…
Opens mail and endorses checks Handle cash receipts
Prepares a document Approve that same document
Handles cash receipts Endorse checks;
Maintain petty cash funds;
Receive deposit slips or corrections from bank
Prepares bank deposits Receive deposit slips or corrections from bank;
Verify cash receipts;
Maintain petty cash fund;
Perform audit function
Distributes payroll checks Prepare payroll input
 
Segregation of duties can be broadly classified it into the four categories:
• Authorization
• Custody
• Recordkeeping
• Reconciliation
In an ideal system, different employees would perform each of these four major functions. In other words, no one person should have control of two or more of these responsibilities. The more negotiable an asset, the greater the need for proper segregation of duties. This is especially true when dealing with cash, checks, and inventories.
 

News You Can Use

Crain's Detroit Seeks Best Managed Nonprofits
Nonprofits in Southeast Michigan are encouraged to apply for this annual award that will be judged on sustainable funding sources other than fundraising --such as fee for service activities or new sources for grants or contracts. Applications are due August 29. More information.

10th Annual After-School Fair
Saturday, August 20, 10am - 2pm
Belle Isle Park Casino
Hosted by The Youth Connection

After-school programs and nonrofit organizations are encouraged to participate and become part of The Youth Connection's After-School Preferred-Partner Network. Cost: $25 to register a table by August 12; $50 August 13-18.  More information.

Information Flow – Get Yours Analyzed
The University of Michigan School of Information is currently seeking applications from organizations that would like to have an analysis of their information flow process and receive recommendations on how to make it more efficient and effective. “Contextual Inquiry and Project Management” is a 14-week client-based course in which Master’s students perform an in-depth analysis of a process flow of organizational information use from several perspectives at no cost to the organization during the Fall 2011 term.

In order to be eligible, your organization must meet the following criteria:
• Have a formal or informal information process already in place, that needs improvement
• Provide 5-10 people who are involved in the process and willing and able to be interviewed by the student team
• Be within a 50 mile radius of Ann Arbor
If you are interested in learning more or would like to submit a proposal to participate, please contact Kelly Kowatch ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) to receive additional information and next steps.

2011 Ann Arbor Give Camp
Weekend of September 16, 17, 18
GiveCamp is a weekend-long event where technology professionals from designers, developers and database administrators to marketers and web strategists donate their time to provide solutions for nonprofit organizations. The deadline for submitting proposals is August 15. Let the "geeks giving back" help you
! More information.

Pro-bono Consulting Help
Students Consulting for Non-Profit Organizations (SCNO) is a national organization of undergraduate students committed to developing communities through pro-bono consulting engagements with nonprofits. The chapter at MSU in East Lansing has an 8-year history and has completed over 120 consulting engagements. Their service offerings include strategy, marketing, finance, operations, IT, and human resource solutions. They will be accepting applications until Friday, September 2 for engagements beginning in the Fall Semester. They like to work in person, but have the capability to work virtually
. Find the application form and more information on their website or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Convergence 2011 – Conference: What’s Art Got to Do With It?
Tuesday, September 20, 12pm-5:30pm
Arts Alliance
Eastern Michigan University, Student Center, Ypsilanti

Convergence is Washtenaw County's annual gathering and knowledge swap for the creative, cultural, and artistic community. Come to advocate, communicate and educate. The Arts Alliance’s mission is to create strong communities through arts and culture. Early bird registration by September 2 saves you $10. More information and registration.  Questions? Email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Social Media for Nonprofits Conference
Tuesday, September 27
Chicago 

Facebook, LinkedIn & more will provide practical tips and tools for fundraising, marketing, and advocacy. The full day conference at Colombia College is $95-$125 and includes entry to the 5:30-8:30pm book release party for "Nonprofit Management 101" that follows.
More information and registration.

Nonprofit Day 2011
Thursday, September 29
Radisson, Lansing, MI

Michigan Nonprofit Association's annual, all-day event for nonprofits, focusing on advocacy and other issues related to the sector. This conference includes plenary presentations, lunch with legislators, meetings with legislators, and breakout sessions on target issues. More information.

MCACA Grants for 2012
The Arts Alliance is the local administrator of the MCACA Minigrant program, which awards grants of up to $4,000 to Michigan nonprofit organizations for high quality, locally developed projects that increase public access to art and culture. 2012 Applications will be due October 3, 2011. New 2012 MCACA Guidelines will be available soon.  Learn more. This year's grantees are required to be registered with the Cultural Data Project. Attend a free orientation session.
 

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Board Member Training: Serving on a Nonprofit Board
Wednesday, August 17, 4pm-6pm
BoardConnect, NEW
Jewish Vocational Services, 29699 Southfield Road, Southfield
Cost: $50 
Addresses the roles and responsibilities of a board member, including board operations, strategic planning, resource development, oversight and ambassadorship.
More information and registration.

Webinar -- Fundraising Intelligence: Ethics and Social Media
August 18, 12 noon ET
Wealth Engine
Free
More information.

Webinar -- Automatic Revocation of Tax-Exempt Status: What It Means For Your Organization
Wednesday, August 24,  3:30 - 4:30 p.m. ET
National Council of Nonprofits
Free
Learn about the importance of annual returns and what nonprofits need to know about reapplying for tax-exempt status (if revoked) and staying exempt. More information.

Board Chair 101 
Tuesday, September 13, 4pm - 6pm
Board Connect, NEW
NEW Center, 1100 N Main, Ann Arbor
Cost: $50  
Join Board Chairs and Executive Directors to learn best practices for managing your board, strengthening your partnership, and leading the board and staff through visioning and strategic planning. Network opportunity too!  More information and registration.

Get Connected:  Best Practices for Measuring Social Impact
Tuesday, September 27, 1pm-2:30pm
NEW
Hannan House, 4750 Woodward, Detroit
Cost:  $10
NEW presents a panel discussion that will help you think about different ways of measuring your social impact as well as what resources to explore for funding. Come learn from experienced local and national nonprofit professionals about how to increase capacity and implement evaluation and performance measurement in meaningful ways.

Panelists:Brian Dates, Director of Evaluation and Research -Southwest Counseling Solutions; John Seeley, Co-Founder and currently a consulting partner- FERATeri Behrens, Editor in Chief – The Foundation Review, Dorothy A Johnson Center for Philanthropy.

Registration.

See more trainings and events on the Michigan Nonprofit Association website.

Bulletin Board

Free Office Space Available to Nonprofits
Whether established or just starting up, if you are in need of office space get more information from Rev. David Brown who has purchased the Blue Cross Blue Shield properties at Eleven Mile and Inkster. Contact him: tel:248-739-5975 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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Success Story

 The Ann Arbor Center for Independent Living (AACIL) is a community-based organization dedicated to the success of children, youth and adults with disabilities at home, at school, at work and in the community.
“When I began working in proposal development for the Ann Arbor Center for Independent Living, NEW's ResourceConnect staff helped me learn how to research and identify funders using the Foundation DIrectory Online. As a result of their help, we gained valuable information that helped us locate new prospective funders in our own backyard.”
Alex Gossage, Special Projects Coordinator

See the AACIL profile in the Directory of Nonprofits.

Thank you to NEW's Community Partners:

Ann Arbor Area Community Foundation
Community Foundation for Southeast Michigan
DTE Energy Foundation
  Lloyd and Mabel Johnson Foundation
W.K. Kellogg Foundation
  James A. and Faith Knight Foundation
  McGregor Fund
Online Tech
The Power Foundation
Washtenaw County

Special thanks to our founding partner:
McKinley Foundation