When it comes to preventing fraud, most nonprofit finance professionals report their organization is doing a good job, but far from a perfect job. In fact, according to the 2016 Nonprofit Finance Study, 34 percent say their organization undertakes actions that put it at risk for fraud, and only 40 percent say their organization put some or minor effort into helping prevent fraud.
So what actions can your nonprofit take to prevent and deter fraud? Fostering a fraud-free environment is just one way to help reduce fraud risk within your nonprofit, starting with the Three Ts:
- The Team
- Foster an environment of awareness, information, open communication, kindness, and trust
- Put policies in place, including whistleblower policies and HR policies, and keep your employee handbook up to date
- The Talk
- Stay aware, and don’t be afraid to talk about fraud (before the money walks out the door)
- Maintain awareness and communicate often
- Have a crisis management plan and disaster recovery plan that include all of the who, what, when, where, and how to deal, should fraud ever take place
- The Technology
- The right technology can help an organization be both proactive and reactive when it comes to detecting and deterring fraud
- Promote sound accounting policies and procedures
- Support and promote proper segregation of duties
- Create thorough and accurate audit trails
Uncover more insights into preventing and deterring fraud in the recorded webinar, The Fact of the Matter: Nonprofit Fraud. Join experts Dena Jansen, CPA and Audit Partner for Maxwell Locke & Ritter, and Harold Ingersoll, CPA and Certified in Financial Forensics (CFF) at Atchley & Associates, LLP, as they debunk common myths, discuss how your organization can combat fraud with simple techniques, as well as share insights based on their own professional experiences working to detect and deter fraud for their nonprofit clients.