Nonprofit Crime Prevention: Fundraising Monitoring

Nonprofit Organization Crime Prevention > Lawful Fundraising

In this series of posts, we’ve talked about the growing need to monitor and prevent nonprofits from suffering from crime. From the highest chain in command down to the volunteers, there are plenty of exposures that exist within the organization. We’ve already discussed how to mitigate executive directors from taking advantage of the nonprofit and how to identify the financial red flags, and now we’ll dedicate a blog to fundraising monitoring. Most importantly, protect your client’s entire operation front to back with a customized Nonprofit Crime Insurance policy.

Start from the top.

Nonprofits need a high-ranking sponsor to get fraud risk management off the ground. This leader and his or her team’s first order of business should be deciding whether their organization’s fraud risk management will be integrated into the existing risk management function (which typically focuses on strategic, operational, reporting and compliance risks) or whether it will be separate. Either way, the goal is the same: embed a risk management element into the daily activities of all your personnel, explains Nonprofit Quarterly.


Utilizing a system of checks and balances can prevent fundraising fraud at the source. A system of collecting, tracking and spending money should be completed by a different person, or people, to ensure there are no loop holes for someone to steal.

However, keep in mind that this framework and the tools your organization uses should be scaled to fit both your size and your available resources. It’s impossible to completely “fraud-proof” any organization, so understand the weak points in your infrastructure and organization, and then work backwards to execute.


The best way for your clients to prevent fundraising fraud is to educate all of its employees and volunteers. The more knowledge they have, the more they are informed and know what to look for. Ensure that they have resources to utilize in the event they witness or suspect something fraudulent including hotlines and reporting systems.

About Domenick & Associates

At Domenick & Associates, we have a unique understanding of the nonprofit sector and how to properly secure your clients’ operation. From personal and advertising protection to crime coverage, we offer a range of products that are necessary for their success and longevity. For more information about our products, contact our experts today at (215) 629-5701.

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