Resources for Fraud Protection

As part of International Fraud Awareness Week, we wanted to post some good year-round resources for nonprofits on fraud and fraud prevention.  

As highlighted in this excerpt from the Association of Certified Fraud Examiners’ (ACFE) 2020 Report to the Nations “…nonprofit organizations were the victim in 9% of fraud cases reported by CFEs in the study — with a median loss per instance of $75,000 and an average loss of $639,000. Of these cases, nonprofit employees were more likely to commit fraud (39%), but those at the director and board level tended to steal more ($250,000 compared to $21,000 by employees).” 

One of the key ways to prevent fraud is to build a board with a mix of talent. Aim to have a board member with strong financial expertise who can serve as part of your financial checks/balance team. Ensure your internal controls are formally documented, well-understood, and strongly enforced. Post your nonprofit’s fraud policy on the walls in your office. Foster a culture of awareness, open communication, and transparency for employees, donors, and stakeholders. 

Train all employees and volunteers at events on fraud protection. Make sure you have implemented a fraud reporting mechanism so all employees know they can report fraud if they see it. Let them know the impacts of fraud on your mission and your stakeholders. Here are some other important resources to help you reduce and protect against fraud.  

5 key resources for fraud prevention:  

• 5 steps to prevent fraud 
• 4 simple things you can do today to prevent fraud
• How to reduce fraud and embezzlement 
• Checklist for fraud prevention from ACFE 
• For more data and insight on fraud, you can also review the full report from the Association of Fraud ExaminersACFE

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