April 2017
While it may seem difficult to comprehend the notion of stealing cash from a nonprofit organization, people with ill intentions do it all the time, and smaller nonprofits are especially prone to this devious practice. This is partly because cash is more difficult to trace than stealing through other disbursement schemes. Additionally, smaller nonprofits often suffer from a lack of financial oversight, which makes this practice a realistic concern.
As a general rule, whenever cash is involved, a nonprofit’s board should strengthen internal controls and take an increased oversight role. Failure to take a proactive approach toward potential fraud is a recipe for financial disaster.
