During the last couple months the Washington Post has been running a series of articles on financial fraud at non-profit organizations using the annual Form 990 report. According to their research, more than a thousand organizations have disclosed “a significant diversion” of assets (such as embezzlement) since 2008. “Significant” means it exceeds $250,000 or five percent of the organization’s assets or receipts, so minor occurrences of fraud are not revealed. Charitable organizations (such as museums and historic sites) were by far the most common victims, representing about 65 percent of the total. Educational institutions were the second most common victims, but fell far behind at about 15 percent.
The three most common forms of financial fraud are: Continue reading