© D.L. Crumbley
Fraud in Not-for-Profit Organizations
The website of Clark, Schaefer, Hackett & Company states the following reasons not-for-profit organizations become targets of fraud:
Many smaller not-for-profits just don’t have the personnel size required for a real segregation of duties. They often don’t require much approval for disbursements.
And, when fraud is discovered, they frequently don’t prosecute it very aggressively because of the perceived negative publicity.