Catch the warning signs of fraud in non-profit organizations

With their high fund-raising activities and performance goals, and volunteers handling money and keeping accounting records, non-profit organizations can be prime targets for fraud. Below are some of the red flags to watch for:

  • Budget cutbacks
  • High turnover
  • Refusal to take legitimate perks
  • Overemphasis on short-term fundraising goals
  • Poorly monitored supervision and controls
  • Bounced checks
  • Things don’t add up
  • Anonymous tips
  • Lifestyle or behavior changes
  • Inattention to details
  • Failure to conduct background checks on thoseĀ  handling money
  • Keeping problems a secret
  • Failing to investigate and prosecute offenders