Theft and Embezzlement: A Diligence Checklist

Legal By: Sarah E. Mooney and Joan M. Renner

Recent media attention to fraud in the nonprofit community has provided a wakeup call for associations that may need to get better at protecting their assets. For those that have been fleeced and those that want to avoid becoming the next news story, these steps can help shore up critical financial controls.

Late last year, a problem that many in the tax-exempt sector have experienced but that is rarely discussed openly made headlines in The Washington Post. A Post investigation found that hundreds of nonprofit organizations reported to the IRS that they had experienced theft of their assets.  ...