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Nonprofit Employee Theft

Timely article about theft at local nonprofits in today’s Times-Union. Dana Treen makes the point that nonprofits must keep a better watch on their funds and the staff that manages them.

Nonprofits that show they are poor stewards of money are at risk of losing funding from government, corporations and discretionary donors. Tarnished reputations are all the more perilous in a tight funding environment like the one we find ourselves in right now.

Nonprofit employees frequently get paid less than for profit counterparts, and in this economy, the temptation can be great. For profits have had trouble preventing employees theft, but can keep any occurrences quiet. Nonprofit theft is always a big story and media attention is certain. Creating accountability, good monitoring and layeringed spending approvals can help nonprofits make themselves theft proof.

Once again, funders should be more flexible in allowing more administrative costs to be covered in grant funding. It takes money to be compliant.

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