Protecting Your Non-Profit From White Collar Crime

Any interior scandal in a nonprofit organization can completely destroy it. This is why you have to take whatever steps possible to ensure your nonprofit is protected from white collar crime. Crimes committed by trusted individuals in your organization can put everything at risk, so it is important to put together a solid team with clear policies from the very beginning.

A Quick Look at White Collar Crime

White collar crime is usually motivated by greed and involves money in some way. It can include embezzling, money laundering, and theft. It can be difficult to spot this type of crime. In addition, it can be hard to prosecute these crimes. Learn more about white collar crimes from USC.

When it comes to nonprofits, white collar crimes can be so damaging because nonprofit funding often comes from donors. If they learn their money has been used for the personal gain of an organization leader, it can lead to major issues with securing donations in the future. This is why it is important to try some common techniques and put some policies in place to prevent someone from being able to commit a white collar crime.

Policies That Protect

When you are starting your nonprofit, it is important to put policies in place that will prevent one person from holding too much power or influence over the financial aspects of the organization. It can help to read about organization creation, such as this article by USC Online, to learn a little more about the start-up process.

You should always have systems that require checks and balances. For example, require every check to have two signatures. Create a deposit system that allows for it to be completely monitored. Avoid allowing one person to handle a task alone. There should always be at least two people involved in any task that is centered on money.

Also, put recordkeeping policies in place that allow for a third party to monitor and check them on a regular basis. This will help to avoid accounting issues and prevent anyone from thinking they can get away with moving funds or stealing them. It is one of the best ways you can protect against white collar crimes.

In addition, make sure your hiring policies are strict. You should require background checks that cover criminal history, credit history, and employment history. Thoroughly check out every aspect of a person who will be in a leadership role within the organization. Also, create policies that clearly outline what will happen to anyone who doesn’t follow company rules, especially those related to funding and money.

Keeping your nonprofit free of any scandalous white collar crime requires attention to details. You have to set up policies to make it possible for someone to commit such a crime. In addition, you have to constantly monitor activities involving money. You also need to hire the right people. By carefully putting together a good team that is working together, focused on your organization’s goals and committed to transparency in all their actions, you can keep your nonprofit safe from this type of crime.

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