Open Letter to the Non Profit Community

Mark Twain House employee embezzled $1 million.
– LA TIMES August 9, 2011

Church official faces third theft charge.
– Record Journal Feb 23, 2011

Cop arraigned on charges of stealing $19,000 from youth programs.
– JI December 18, 2008

Alarming headlines? You bet! Confident that headlines like these can’t possibly happen to your nonprofit organization? Think again. Unfortunately, they are becoming more and more prevalent as people affected by the downturn of the economy are taking drastic measures to keep themselves financially afloat. In other cases of embezzlement, some individuals are driven by just plain greed. Nonprofits are being slammed in more than one direction as generous benefactors are tightening their belts with their donations, interest and dividend income on assets is evaporating, and with headlines like the above being broadcast, what benefactor feels absolutely confident that their generous donation won’t be foolishly squandered?

Perhaps you are confident that you have been diligent in your past hiring because you have run criminal background checks with no results found. Well, did you know that a credit report run on an individual handling your cash might turn up credit problems? One of the individuals responsible for stealing hundreds of thousands of dollars had outstanding tax liens that likely would not have surfaced on a standard criminal background check. Does your organization have signed releases by your employees allowing for ongoing procurement? This allows for employers to regularly monitor key staff on an annual basis or when you might be you suspecting issues in the future.

Wondering which direction your organization might be headed? With much uncertainty about future revenue, you may feel that you can’t afford to be as diligent as you’d like, or maybe you’re just unsure as to the most beneficial and cost effective avenue in which to do it? We would be happy to discuss the tools which other nonprofits are using to insure that your generous benefactors know their money is safe in your hands.