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It never lets up, nor should you. In nonprofit operations, that’s usually true no matter what “it” is.
One “it” requires never-ending caution is the area of fraud and fraud prevention. Nonprofits do a lot of fundraising, and they do a lot of work with those funds that were raised, which means the opportunity for fraud exists, all of the time, in a lot of ways, in a lot of places.
During the Summit for New Risk Champions in St. Petersburg, Fla., Melanie Lockwood Herman of the Nonprofit Risk Management Center emphasized the importance of anti-risk controls. She added that the presence of such controls correlates with significant decreases in cost and duration of occupational fraud schemes.
Herman offered 16 anti-fraud measures and said that organizations that implemented any of them experienced considerably lower losses and time-to-detection spans. The measures are:
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