The perfect storm for fraud is brewing at most nonprofits.

No nonprofit wants to believe its organization would fall victim to fraud. How could it with a staff of dedicated individuals passionate about the mission? The reality is nearly 30% of fraud victims are nonprofit and government organizations that reported a median loss of $100, 000 as estimated by The Association of Certified Fraud Examiners.

The following combination of “events” could be contributing to the drastic aggravation of a situation at your nonprofit.

  • Your team members are wearing too many hats.
  • Your nonprofit experience high employee turnover.
  • Training is a luxury.
  • You have limited or ineffective controls in place.
  • There are volunteers working at your nonprofit who are privy to confidential information.
  • Your volunteer board has little-to-no financial oversight expertise.

What’s at stake if your nonprofit falls victim to fraud?

The obvious answer is hard-earned dollars. You and your team work tirelessly to raise funds for your mission-related programs, and the financial blow inflicted by a fraudster could be  devastating. The impact of fraud can be far wider-reaching than just financial including:

  • Harm to your reputation
  • Crisis management
  • Cost of investigation and litigation
  • Deflated employee morale

How do you mitigate fraud?

Before a major storm hits, preparation is key. When it comes to fraud, having the right people and processes in place is your first line of defense – but it doesn’t stop there. A true fund accounting solution can help you detect and deter fraudulent activity that may otherwise slip under the radar.  See first hand how Abila MIP Fund Accounting™ technology can protect your organization.

Contact us for more information or a free Abila MIP™ software demo.