What are the key indicators?
By Stuart Douglas & Kim Mills Canadian FundRaiser: August 16, 2000 Although it’s generally unsubstantiated, we probably hear or read about fraudulent activity, on average, at least weekly. The headlines confirm that fraud – lying, cheating and stealing for financial gain – does occur in NPOs and, in some instances, may have a significant impact on their continued viability, thanks not only to the monetary losses but also to the reduction in public support that generally results from any allegations of impropriety. The rate of incidence of fraud against businesses is alarming, and the resulting losses are immense. In a recent research study the Association of Certified Fraud Examiners, estimated that fraud costs American organizations more than US $400 billion annually. Further, while it is commonly believed that fraud only occurs in large, multinational organizations, the ACFE study found that the most costly abuses occurred in organizations with less than 100 employees. These American
