Preventing and Investigating Fraud, Embezzlement, and Charitable Asset Diversion: What's A Nonprofit Board To Do? [2014]

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According to a recent study, nonprofits and religious organizations suffer one-sixth of all major embezzlements, second only to the financial services industry. Embezzlement in particular can damage donor trust and agency reputation, thereby undermining a nonprofit's good work. In extreme cases, it can lead to revocation of tax exempt status. Therefore, it is critical that the board and management of a nonprofit that has discovered potential fraud, embezzlement or other diversion, formulate a thoughtful plan of action that complies with the law. Preventing and Investigating Fraud, Embezzlement, and Charitable Asset Diversion: What's A Nonprofit Board To Do? includes practical steps your board can take to prevent embezzlement and, if necessary, respond to it.