The most recent story in The Washington Post reports on how fraud is a problem affecting all types and sizes of nonprofits (which you can read here): Inside the hidden world of thefts, scams and phantom purchases at the nation’s nonprofits
The report highlights the potential for fraud and financial shenanigans, and how even large trusted institutions with significant infrastructure can be vulnerable.
It’s a great reminder how important formalized internal controls, board oversight to real financials, and financial software selection, set up, controls and audit trails are. These are the key bulwarks to spare nonprofits from this type of financial trauma and embarrassing publicity.
At Welter Consulting we help clients ensure proper security and controls every day. The report makes for sober reading, but there are guidelines and controls that can significantly improve security and drive accountability.
Take steps now to protect the reputation of your organization and ensure that your funds are safely directed to your mission and not falling prey to bad players.