Fraud in the Nonprofit Sector? You Bet

Because their mandate is so noble, many nonprofit organizations (NPOs) mistakenly assume that their employees and volunteers wouldn’t steal from them. What coldhearted person would steal money donated to grant wishes for terminally ill children or make off with funds pegged to important research? Misguided beliefs like these often influence accountants and auditors of NPOs and small charities to be less diligent than their counterparts in large for-profit entities in setting up controls for safeguarding cash. As a result of these lax controls, many NPOs become breeding grounds for fraudulent activity.