Fraud and Forensics

Because their cultures are oriented toward helping others, nonprofits often find it impossible to imagine that anyone working for them would steal. As a result, too many charities neglect to put proper internal controls in place and, if they’re defrauded, refuse to seek prosecution of the perpetrator.

Investment fraud, such as Ponzi schemes, can cause significant financial losses for not-for-profits. But the harm it can cause an organization’s reputation with donors and the public may be even worse.

Fraud that makes the headlines are typically disbursement schemes, meaning that they are frauds that occurred from the disbursement of cash, such as embezzlement and purchasing frauds.  While these are very significant and should be considered by every type of organization by addressing internal controls surrounding cash disbursements, associations may