Fraud in Nonprofits

Posted on Wednesday, March 08, 2017

Limited staff and tight budgets make nonprofit organizations prime targets of fraud; however, often nonprofit management believes “it won’t happen to our organization” or “Jane is the most dedicated and honest person I’ve ever met.  She’d never commit fraud.”  These are myths that can negatively affect management’s decisions in addressing the prevention of fraud within its organization.  Fraud can and does happen in both for profit and nonprofit organizations.

The Association of Certified Fraud Examiners (ACFE) performed an analysis of 2,410 cases of occupational fraud from January 2014 through October 2015.  The frauds took place in 114 different countries throughout the world.  The ACFE’s 2016 Report to the Nations, which summarizes the results of the study, noted that the typical organization loses 5% of revenue in a given year as a result of fraud.  Some other interesting fraud statistics noted in the study were the following.

Now that you know that fraud can and does happen in nonprofit organizations, continue to follow DWD’s Mission Minded blog to find out ways that you can deter fraud from happening in your organization.

To read the entire 2016 Report to the Nations, visit the ACFE’s website.

Posted by: Carrie Minnich, CPA

Posted in Mission Minded Nonprofits

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.

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