Five Questions Not-for-Profit Boards Must Ask About Fraud

Five Questions Not-for-Profit Boards Must Ask About Fraud

The newspaper has been bursting lately with stories related to fraud schemes in non-profit organizations.   Why are non-profits such an easy target for fraud? The oversight and control structure is minimal, or even non-existent in most non-profit organizations, creating a recipe for disaster in deterring, preventing, and detecting fraud.  Non-profit organizations cannot simply be focused on raising funds for the organization if they are not willing to protect the funds.  What good is a donation received if it is then stolen to pay for a member’s new Porsche? The key to deterring and preventing fraud from taking place starts with the Board of the organization.  The following article talks about five questions the Board should ask in order to get the fraud risk management dialog going.

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