SDM Accounting Insights: Protect Your Nonprofit From Occupational Fraud Threats
Many not-for-profits increase their occupational theft risk by devoting too little of their budget to internal controls, placing excessive trust in staffers and volunteers and failing to punish fraud perpetrators appropriately. Board members who lack the financial knowledge to spot irregularities are another risk. Because your organization likely can’t afford any fraud losses, you need to address such risks. For example, provide strong management oversight, conduct background checks on new hires, ensure board members understand their fiduciary duties and hire a fraud investigator if you suspect theft.
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