Inventory Management Policy and Procedure

^{Effective Date: July 1, 2025}

Purpose

This policy establishes the procedures and responsibilities for managing inventory and capital assets purchased with grant funds or program revenue under NOPI fiscal sponsorship. It aims to ensure accountability, proper use, and regulatory compliance with IRS, grantor, and internal nonprofit standards.

Scope

This policy applies to all NOPI staff, contractors, and fiscally sponsored programs that acquire, use, or manage tangible property and equipment with an initial purchase cost of $500 or more and a useful life of at least one year.

Definitions

• Inventory: Tangible property such as equipment, furnishings, electronics, and other physical assets used for program operations.

• Capital Asset: A specific type of inventory with a value exceeding $5,000 and a useful life of at least one year, subject to capitalization and depreciation.

• Inventory Custodian: The staff member or program representative responsible for oversight of assigned equipment or assets.

• NOPI Asset Register: A centralized digital record maintained by the finance team documenting all inventoried items.

• Program Inventory Submission Form: An online form provided to programs to report new inventory acquisitions or update information about existing inventory (e.g., location, custodian, or condition). Required for maintaining accurate inventory records and submitted to the NOPI finance team.
  
  

Ownership of Inventory

1. Under Model A (Comprehensive Fiscal Sponsorship), NOPI retains ownership of all inventory acquired through grant funds or donations.
2. Under Model C (Grantor-Grantee Sponsorship), the program retains ownership, and NOPI’s role is limited to financial oversight.
   
   

Acquisition Procedures

1. Authorization Requirements
   • All inventory purchases must be pre-approved by the NOPI Finance Department.
   • Purchases exceeding $2,000 require documentation of funding source (e.g., grant award letter or budget approval).
     
     
2. Documentation
   • Proof of purchase (invoice or receipt) must be submitted along with a completed Inventory Intake Form.
   • Each item must be labeled with a unique asset tag provided by NOPI.

Inventory Tracking and Records

1. Program Inventory Submission Form
   
   

   • Each program must complete a Program Inventory Submission Form, provided by NOPI, to:
     • Report newly acquired inventory
     • Update records for existing inventory (e.g., changes in location, custodian, or condition)
   • This form must be submitted within 10 business days of acquiring new inventory or upon NOPI’s request (e.g., during annual reviews).
   • The form is available online and should be submitted electronically to the NOPI finance team.
     
     
2. Annual Inventory Review
   
   
   • Each program must participate in an annual physical inventory conducted by the finance department.
   • Programs must verify the condition and location of each item assigned.
     
     

Use and Care of Inventory

• All inventory must be used exclusively for programmatic or administrative purposes in alignment with grantor terms and NOPI policies.
• Inventory should be protected from loss, theft, or damage. Any incident must be reported to the finance department within 48 hours.
  
  

Disposal and Transfers

1. Disposal Requirements

   • Programs must request written approval from NOPI before disposing of or recycling any inventory item.
   • Assets with residual value may require sale proceeds to be returned to NOPI or the original funder, depending on the funding agreement.

1. Transfer of Equipment

   • Transfers between programs or to external entities must be approved and documented by NOPI’s finance team.
     
     

Non-Compliance

• Programs failing to comply with inventory tracking or reporting requirements may face:
  • Suspension of further asset purchases
  • Withholding of fund disbursement
  • Revocation of NOPI-issued assets
    
    

Compliance and Accountability

1. Policy Compliance

   • All individuals with custody of inventory are expected to adhere to this policy.
   • Violations may result in disciplinary actions or loss of fiscal sponsorship privileges.
2. Audit and Review
   • Inventory reports and usage may be audited quarterly.
   • This policy will be reviewed annually and revised to reflect changes in funder requirements or nonprofit regulations.
     
     

^{updated 7/14/25}

Download Policy (PDF)