You Can't Eliminate All Fraud. But here are some resources to help reduce its likelihood.
Fraud in the News
Archives

Odyssey of Corruption – The Latest Massachusetts Nonprofit Scandal

In 2003, I was fortunate enough to be one of a handful of project managers charged with investigating, documenting, and quantifying the largest fraud in the history of the planet, WorldCom. Eventually the fraud reached 10 or 12 Billion dollars, and the CEO was put away for 20+ years.

State claims New Orleans pastor misspent thousands in Hurricane Katrina grants

A state audit released today claims the pastor of a Central City church known for its drug addiction programs misspent or wasted at least $160,000 in relief grants after Hurricane Katrina.

Despite High-Profile 'Three Cups’ Controversy, Nonprofit Fraud Isn’t Widespread

Until a few weeks ago, Greg Mortenson was known—and widely admired—as the best-selling author of Three Cups of Tea and the founder of a charity, the Central Asia Institute, that seeks to construct schools in conflict-torn areas of Afghanistan and Pakistan.

When Donors Commit Fraud, Nonprofits Often Pay the Price

Hassan Nemazee pleaded guilty to leading a nearly $300-million fraud. He donated $1.1-million to charities that have now been asked to return the money.

Embezzlement Happens. It’s What Charities Do Next That Matters

What should you do when a trusted employee takes the equivalent of 15 percent of your organization’s annual budget?


Fraud Articles

You Can't Eliminate All Fraud

Fraud: Warning signs and facts

Fraud in Ministries: How to Respond

Fraud in Ministries: Real Examples and Red Flags

 
Dealing with Expenses

Check Writing Procedures

Accounting for and Documenting Ministry Expenses

Expense Reports Can Kill

Credit Card Use

 
Sample Policies

Policy on Suspected Misconduct, Dishonesty, Fraud, and Whistle-Blower Protection

Travel Expense Claim Form for Families

Expense Report Sample

Sample Credit Card Policies and Procedures

Sample Accountable Expense Reimbursement Plan

 
Other

Accountability for All the Wrong Reasons

Records Retention

Benevolence Funds

Additional Resources and Links

Gerard M. Zack, Fraud and Abuse in Nonprofit Organizations: A Guide to Prevention and Detection (New York: John Wiley & Sons, 2003)

Andrew S. Lang and Tammy S. Ricciardelle, Preventing Fraud: How to Safeguard Your Organization (BoardSource E-Book series, 2001)

Edward J. McMillan, Policies and Procedures to Prevent Fraud and Embezzlement (New Jersey: John Wiley & Sons, 2006)

Peggy M. Jackson, Nonprofit Risk Management & Contingency Planning (New Jersey: John Wiley & Sons, 2006)

Association of Certified Fraud Examiners -- www.acfe.com

International Fraud Awareness Week -- www.fraudweek.com


Follow @ecfa