Fraud Of Non Profit Organizations

930 WordsOct 7, 20154 Pages
Many have been skeptical of donating to a non-profit organization after hearing about fraud amongst an organization in the news. An organization that is perceived as fraudulent, it is hard for individuals to overcome their perception to donate to them if they believe their donation will be misused or misapplied. Some have even researched an organization and noticed that a small amount of their donations goes directly to their end cause, speculating that the organization might be fraudulent. However, in both situations they might need to research further rather than taking what they have found or heard at face value. Non-profit organizations that appear fraudulent might in fact be employees committing fraud; or possibly the company is applying the funds towards research and fundraising that would further their cause more effectively, as opposed to directly to their cause. Employees committing fraud in non-profit organizations are costing large amounts of loss with many examples of individuals that have been caught with even more loss not being reported. It is estimated that fraud to non-profit organization’s funds is costing more than $40 billion in the United States each year. These estimates are misused or misapplied by employees for personal enrichment rather than going to the organization. Some examples of these acts of fraud has even been headlined in the news. “An administrative assistant admitted Monday to stealing more than $5million from the Association of American
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