Non-profit groups need to be vigilant about fraud – survey

The NZ Herald story “Non-profit groups need to be vigilant about fraud – survey” looked at results from the BDO Not-for-Profit Fraud Survey, which showed a drop in fraud within the sector. 

The story stated that “BDO partner Andrew Sloman said despite the survey showing a fall in fraud from 19 per cent six years ago to 12 per cent now, it was likely some fraud was going undetected.” 

And it likely is higher as organizations could be reluctant to ‘notify’ due to a concern that it could tarnish their reputation. 

In May last year I wrote Charities and Donors at Risk of Con-Artists and have also wrote Do low lifes damage the credibility of charities?

Both looked at cases of fraud, dishonesty – call it what you may, the losses charities and those who benefit from the work of them haven’t been insignificant; and looks like they’re still continuing.

Something needs to be done to prevent internal fraud taking place, full background checks must be done; if any candidate doesn’t like it – then you don’t want them working for the organization. 

Not only do the scumbags who fleece charities harm them directly, but they’re tarnishing the entire sector. When stories of what some have done break – people become concerned and wonder if they money they are giving is getting to where it’s meant to be. 

Everyone working in the sector has to do their part to help prevent anything that can cause doubt within it – whether it’s being vigilant in their local community for unscrupulous collectors, or bringing suspicious activity they see in their organization to the attention of someone. 

What’s happening in your organization – what steps have you, or are you putting in place to prevent fraudulent activities? 

As a donor, what would you like to see happen – can anything be done?