Employee Theft ‘Shockingly Common’ at Nonprofits

More than 1,100 nonprofits told the IRS they suffered a significant, unauthorized diversion of assets - usually employee theft or embezzlement - between 2011 and 2017. Is your organization suffering from theft? Learn how these organizations were involved and what they're doing about it.
Definition of the words embezzlement from a law text book highlighted with a blue highlighter.

Guest Author: Todd Wallack, Boston Globe

A board member for the Somerville Homeless Coalition was reviewing the nonprofit’s annual financial documents in 2015 when he spotted something odd. The forms said the chief operating officer, the No. 2 executive, earned $12,000 more than the organization’s top executive the previous year. Could that really be correct, he asked?

Turns out it wasn’t a typo. It was theft.

Somerville Homeless soon discovered that the COO — who handled all the finances — allegedly embezzled approximately $108,000 over 18 months. The charity said he brazenly added some of the money directly into his paycheck — where it showed up on the group’s annual financial forms — used the organization’s credit card for personal expenses, and added his middle-aged son to the group’s health insurance.

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