According to the Association of Certified Fraud Examiners, establishing and enforcing a code of ethical conduct is associated with 50% lower fraud losses.

a stack of white binders filled with paper; image used for blog post about not-for-profits having a code of ethical conduct

Codes of conduct aren’t just about fraud prevention, though. Holding staffers and board members to an ethical code helps your not-for-profit communicate its values to the public and reassures supporters.


Continue Reading Does Your Not-for-Profit Have a Code of Ethical Conduct?

The Houston Business Journal recently published an article on their website by PKF Texas Director, Danielle Supkis Cheek, who shares insight on selecting the “second-best” controls for fraud prevention.

someone holding a magnifying glass to a laptop keyboard; image used for blog post about Danielle Supkis Cheek article about fraud prevention

Danielle references the 2020 ACFE Report to the Nations as a resource for information and data, which companies can use when finding the best fit for

cover of the 2020 Report to the Nations by ACFE; image used for blog post about not-for-profit takeaways in Report to the NationsEvery two years, the Association of Certified Fraud Examiners (ACFE) publishes what has become the definitive guide for preventing and detecting workplace fraud. The recently released Report to the Nations: 2020 Global Study on Occupational Fraud and Abuse draws conclusions from more than 2,500 fraud incidents — including 191 in not-for-profit organizations.

In fact, this year’s report devotes a special section to fraud in not-for-profits. Although not-for-profit fraud isn’t necessarily worse than fraud in for-profit companies, it can be different in important ways.


Continue Reading The 2020 Report to the Nations and Not-for-Profits

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Danielle Supkis Cheek, one of the faces of our fraud and forensics team. Danielle, welcome back to the Playbook.

Danielle: Thank you again for having me.

Jen: So, I’ve heard a little bit about treasury management. What do you do in that space, and what does that look like?

Danielle: Treasury management is just a fancy word for “banking services.” You’ll be able to reach out to your banker and find out what treasury management services they have, but it’s kind of the services that the bank offers you as a business customer typically.


Continue Reading How Treasury Management Can Help Protect Your Business

Credit card misuse or fraud is more common in not-for-profits than you may think.

A hypothetical scenario: not-for-profit staffer named Britney had maxed out her personal credit cards. So when her car needed repairs, she reached for her employer’s card. She reasoned that she would come up with the money to pay the bill before her boss ever saw a statement. Britney didn’t come up with the money. But lucky for her, her boss didn’t review the card statement that month. When Britney needed to buy holiday gifts, she reached for her work card again — and again. By the time her boss finally noticed the illicit charges, Britney had spent more than $5,000.

a gold American Express Business credit card sitting behind a master lock; used for a blog about avoiding credit card misuse for not-for-profit organizations

If you write and enforce a strong card use policy at your organization, you can help prevent Britney’s and her boss’s mistakes.


Continue Reading How to Avoid Misuse of Your Not-for-Profit’s Credit Cards

Who would defraud a kids’ organization? The answer, unfortunately, is that trusted adults sometimes steal from not-for-profits benefiting children. Youth sports leagues and teams, for example, are ripe for fraud. Cash transactions are common, and coaches and board members usually are volunteers with little accountability.

photo taken behind the goalie net, a young boy in black shirt and red shorts about to kick a soccer ball at the young girl goalie, caution to protect youth sports league from fraud

If you or your children are involved in a youth sports league, here’s what you can do to ensure that its funds support the kids, not thieves.


Continue Reading How to Protect Youth Sports Leagues from Fraud

Jen: This is the PKF Texas Entrepreneurs Playbook. I’m Jen Lemanski, and I’m back again with Nicole Riley, an Audit Senior Manager and one of the faces of PKF Texas’ Not-for-Profit team. Nicole, welcome back to The Playbook.

Nicole: Thanks, glad to be here.

Jen: Now as a CFE I know you talk about fraud – Certified Fraud Examiner. What is occupational fraud, and can it happen in a not-for-profit organization?

Nicole: So occupational fraud really is a fancy word for employees stealing. And yes, unfortunately it does happen in the not-for-profits. The 2018 Report to the Nation by the Association of Certified Fraud Examiners found the median loss at a not-for-profit was $75,000 per instance.

Jen: Wow.

Nicole: Yeah. It is actually better than the for-profit loss; the median loss there was $164,000, but not many nonprofits that I know can handle a $75,000 loss in their budget, and that doesn’t even consider the indirect impact on their reputation or the loss of donor trust.

Jen:  Right. So, how does fraud happen in a not-for-profit organization? It seems like there’s so few people you’d be able to catch it quick.


Continue Reading How to Prevent Occupational Fraud in Your Not-for-Profit

Not-for-profit organizations don’t lose as much to occupational fraud as for-profit businesses do. According to the Association of Certified Fraud Examiners’ (ACFE’s) 2018 Report to the Nations, not-for-profits lost a median amount of $75,000 during the 21-month study period, compared with $164,000 for private for-profit companies. Yet few not-for-profit budgets can afford a $75,000 shortfall or the bad publicity associated with fraud.

A photo of grey padlocks on a red metal fence to show why Not-for-Profits need protection from fraud.

Here’s how not-for-profits open the door to occupational fraud — and how your organization can shut it.


Continue Reading Is There Occupational Fraud in Your Not-for-Profit?