A startling report in today’s Washington Post says more than a thousand of the nation’s non-profits have each acknowledged losses of a quarter million dollars or more, because of theft, investment fraud, embezzlement or other unauthorized use of funds.
The report is based on tax filings by the non-profits during the past five years.
Each non-profit disclosed the problem by checking a box on the tax form indicating what’s called a significant diversion of funds.
A global fund to fight AIDS had a problem. They found that they had tens of millions of dollars had gone missing.
The Conference on Jewish Material Claims against Germany, which pays reparations of a sort to victims of the Holocaust, were victims of a scheme involving insiders. They took tens of millions of dollars that were supposed to go to Holocaust survivors.
A lot of this hasn’t been known, because before 2008, they didn’t have to disclose. The new reporting requirements require that you attach a description of what happened to your annual disclosure form.
http://www.pbs.org/newshour/bb/nation/july-dec13/stephens_10-27.html
The report is based on tax filings by the non-profits during the past five years.
Each non-profit disclosed the problem by checking a box on the tax form indicating what’s called a significant diversion of funds.
A global fund to fight AIDS had a problem. They found that they had tens of millions of dollars had gone missing.
The Conference on Jewish Material Claims against Germany, which pays reparations of a sort to victims of the Holocaust, were victims of a scheme involving insiders. They took tens of millions of dollars that were supposed to go to Holocaust survivors.
A lot of this hasn’t been known, because before 2008, they didn’t have to disclose. The new reporting requirements require that you attach a description of what happened to your annual disclosure form.
http://www.pbs.org/newshour/bb/nation/july-dec13/stephens_10-27.html