After Nonprofit Fraud, Mere Restitution is Insufficient - NPQ - Nonprofit Quarterly: e Washington Post followed up its “Diversions” series with a story on Saturday that should act as a reminder to nonprofits that reporting crimes against them is a responsibility not just to their donors and constituents but also to the rest of the sector..
We have previously acknowledged that the response of some few nonprofits to employee fraud is to seek restitution and keep it quiet in hopes that they will not lose face with donors and the public. This leaves the perpetrator to go on and steal from other organizations. This is just plain irresponsible, and boards should understand that it is an ethical issue. And while NPQ would like to believe that perhaps the group that suffered the fraud in the first place would go on to tighten up their systems, these two stories indicate these organizations may still not be as attentive to detail as they might need to keep themselves safe.
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