Fraud Prevention
Protect your nonprofit's funds and reputation from internal and external fraud.
For: Nonprofit staff and volunteers
What you’ll learn
- Recognize common fraud schemes in nonprofits — skimming, expense, payroll, and vendor fraud
- Explain the fraud triangle and why opportunity is the part you can actually control
- Apply internal controls and segregation of duties that deter fraud
- Spot behavioral and financial red flags before a small loss becomes a large one
- Know exactly what to do — and not do — when you suspect fraud
Screen your volunteers for $5
VolunteerBadge runs FCRA-compliant background checks for just $5 — with identity verification built in. No monthly fees, no contracts.
Create a free account →Course outline
- 1
Why fraud finds nonprofits
5 min
- 2
The fraud triangle
6 min
- 3
The schemes: how nonprofit fraud actually happens
7 min
- 4
Segregation of duties & internal controls
7 min
- 5
Cash handling & everyday safeguards
5 min
- 6
The board, the audit & whistleblower mechanisms
6 min
- 7
Red flags & what to do on suspicion
5 min
Sources & further reading
- Association of Certified Fraud Examiners (ACFE) — Occupational Fraud 2024: A Report to the Nations
- National Council of Nonprofits — Internal Controls for Nonprofits
- AICPA — Audit Committee & not-for-profit financial oversight resources
- Nonprofit Risk Management Center — Financial risk and fraud prevention resources
This course is educational and provides general information about the Fair Credit Reporting Act and volunteer-screening best practices. It is not legal advice. Laws vary by state and change over time — consult a qualified attorney about your organization’s specific obligations.