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Fraud and its Effect on Nonprofits

November 07, 2010

  

  • Summary
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The cases of fraud in nonprofit organizations as well as other business entities are so common today that we no longer talk about them as a rare and remarkable instance. Rather, we discuss them at the magnitude at which they occurred. Any organization that fails to protect itself appropriately from fraud should expect to become a victim of fraud. There are many preventive fraud measures that are affordable for nonprofit organizations to implement and less expensive than becoming a victim of fraud. Most organizations score poorly on their initial fraud prevention check-ups because they do not have appropriate internal control measures in place to help prevent and detect fraud.