Nonprofit Fraud Trends
By Robert Gaffney
Fraud is a persistent threat every organization must face. Although most are honest and do not commit illegal activities, all it takes is one bad actor to have a significant and negative impact. The risk is especially high for nonprofit organizations that have limited resources to implement the training and controls necessary for optimal risk management. According to the Association of Certified Fraud Examiners’ (ACFE) Occupational Fraud Report 2022: Report to the Nations, there were 188 cases of nonprofit fraud reported with a median loss of $60,000 during the period examined. It was also reported that religious, charitable, and social service organizations experienced a median loss of $78,000.