The Role of the Internal Control System in Enhancing the Efficiency of Financial Resource Management in a Non Profit Organization

Abstract

One of the most important tools contributing to the successful attraction of financial resources is the internal control system. In commercial institutions, this tool is aimed at optimizing financial flows, minimizing risks and increasing transparency, which in turn helps attract investment and improve reputation. For non-profit organizations, internal control performs similar functions, but the emphasis is on compliance with legislation, effective use of funds, and accountability to donors and the public. In this article, we will analyze how internal control affects the processes of attracting financial resources in non-profit organizations, highlight its key aspects and offer recommendations for improving the control system in the context of the specifics of the activities of these organizations. UDC: 657.62:334.012.46; JEL: M41