
Not-for-profits and internal controls
Not-for-profits and internal controls often have an uneasy relationship. On the one hand, many not-for-profits, especially the smaller ones, lack the resources to implement robust internal controls. Yet internal controls are as critical in not-for-profits as in for-profit entities. In some respects, internal control failures can be more catastrophic for not-for-profits because the public, regulators, and others often hold them to a higher standard.