Fraud And Corruption In Nonprofit Organizations

Fraud and Corruption

Nonprofit organizations are expected to practice accountability to ensure their ways of operating is beneficial for the community and the funds allocated throughout the organization are justifiable. Successful organizations align accountability with their mission and purpose, in which the focus is to serve the community and uphold the public’s trust. Leadership and management skills are crucial for the continuing success of organizations. Harrison and Murray (n.d.) explain nonprofit boards with strategic leadership skills are more likely to be effective.

Remaining consistent in effectiveness depends on the knowledge, skills and ability leadership has to improve and influence the community (Harrison & Murray, n.d.). An

It is important for all staff to be aware of their ethical influence and the impact it has on the organization. Having appropriate skilled staff to address finances and risks is crucial for the developments of the organization. When issues of fraud and corruption arise leadership must address the issue swiftly with interventions that will allow operation to readjust and the public and funders to refocus on the organizations mission to advance despite current complications. Successful organizations require accountability for all actions and obligations to sustain trust from

Presenting the consequences of fraud and corruption within the code of conduct will enforce staff to align with the principles for professional practice. Murphy (2015) suggests providing employee handbooks with an overview of guidelines and procedures reduce the chances of employees engaging in unethical practices. This allows for management to have control of the performance and expectations of staff (Murphy, 2015). Implementing strategies to create an effective internal control environment is needed to prevent and detect controls of fraud (Murphy, 2015). Control is needed to combat fraud, enforcing employees and volunteers to do the right thing. Management must have control of the organizations operations to tackle risks when they arise (Arshad et al, 2015). According to Arshad et al (2015):

“To ensure that control is effective in minimizing the risk factors in NPOs, the board of directors can be a useful mechanism to detect and minimize risks in NPOs. The board’s responsibility to review the effectiveness and the management’s responsibility to develop, operate, and monitor the control systems and provided guarantee to the board that it has done