Nonprofit Board of Directors have a fiduciary responsibility to their membership that does not exist in the private sector.
Nonprofit organizations – IF embezzlement is discovered it is 75% less likely to report the crime to the authorities fearing a decrease in contributed revenue once the news breaks in the media.
It is true that most nonprofits have fiduciary insurance but that only covers the monetary losses – it does not cover your reputation which will make page 1 of the business section.
More interesting facts about nonprofit fraud can be found in these articles:
- Nonprofit Embezzlement: More Common and More Preventable Than You Think
- Nonprofit fraud facts from the 2016 Global Fraud Study
- The Facts About Nonprofits and Fraud
- How to Spot Financial Fraud in a Non-Profit: 2 Warning Signs
- Washington Post report finds fraud, embezzlement at more than 1,000 non-profits
- Emerging trends in not-for-profit fraud
- When funds go missing – what can you do, what must you do?
The 10-10-80 Fraud Triangle
10% of Employees Will Never Steal
10% of Employees Will Always Steal
80% of Employees Will Steal Given the Correct Circumstances
We Will Follow Your Money – Its Just That Simple
