Financial Standards

Standards That Should Be Met

When providing financial support to any organization

1. The organization should be legally incorporated.
2. The organization should have an approved 501(c)3 status (non-profit) by the IRS.
3. Items to be provided by the organization to which you are providing funding:
   • Is there a mission statement:  goals and purposes of the organization?
   • A clear statement of the purpose for the financial gift that they are requesting funds to support?
   • Is there a clear statement of oversight for the project you are supporting?
   • How often will updates on the project be provided to the donors?
   • Will you be provided with the annual audit report of the organization?  The audit should be done by an outside auditing firm, not employees of the organization.
   • What percentage of the organization’s total receipts are used for administration costs; such as program expenses, administration expenses, fund raising expenses, etc.  It is also important to know the organizations fund raising efficiency ranking (the percentage of expenses for fund raising). 
     [See:   www.charitynavigator.org  or  www.clsnet.org/society/finances  or  www.charitywatch.org]
   • If supporting an ongoing project (from year to year), is the project updated or a new project description provided?

4. Transparency should be evident in everything that the organization you are providing funding for, does.  If they seem reluctant to your inquiries or say they haven't had time to provide the needed information, be suspicious.  Do not allow any organization to say or hint to you, "We are a Christian organization, so trust us!"

Written by:  
Pastor David P. Lerseth,
President, Friends of Madagascar Mission (FOMM)  
March, 2010

1. The fiscal year for Friends of Madagascar Mission is January 1 through December 31.
2. Friends of Madagascar Mission will work to train all treasurers in using a financial system that keeps accurate records of all funds received from FOMM.
3. This financial system must include:
   1. Income received should be recorded as follows:
      1. The source
      2. The date received
      3. Amount of money received in Dollars and in Ariary
      4. Bank receipt
   2. Expenses should be recorded as follows:
      1. Paid to whom
      2. Budgeted account
      3. Amount
      4. Date
      5. Signed receipt or invoice
4. A financial report must be submitted to FOMM at the end of each quarter, signed by the treasurer and the president or person in charge of each program.
5. Failure to maintain the treasurer's records and reports according to this standard may mean the cutting off of funding from FOMM.
6. The reports received by FOMM will be reviewed by members designated by the FOMM Board of Directors and request as needed any further information for clarification or lack of documentation.
7. The FOMM Board of Directors will also determine when an official audit will be required and each program will be informed as to when and where the audit will take place.
8. Each program's president and treasurer must sign this agreement to follow these financial standards.