I was honored when my good friend and colleague, Lee Ann Crockett, asked me to write the foreword for her book “Preventing Fraud in Churches.” As a former CPA for Fortune 100 companies, Lee Ann had a good foundation for beginning her 2nd career working with churches and other non-profits. What she learned about the potential for fraudulent activity in the non-profit arena closely mirrors the for-profit world, including the dental industry where I’ve made my career.
Simply put fraud and embezzlement occur when an individual:
- finds opportunity
- experiences pressure
- develops rationalization
This is common no matter what industry you’re in. Statistics show 63% of Americans say they can’t handle a $500 emergency? This creates the pressure for some individuals with the right access to funds to create a rationalization that leads them into the world of fraud and embezzlement. As I’ve said before, some of the least likely individuals turn to fraud and embezzlement as a means of managing their needs and desires. Without the proper controls in place, any business – for-profit or not-for-profit – is vulnerable to fraud and embezzlement. The best method for deterring this activity is educating yourself.
According to Lee Ann:
- 1/3 of all churches and non-profits will experience fraud and embezzlement.
- The average perpetrator has been involved in the organization 7-8 years.
- Pastors and Directors must ensure controls are in place to deter fraud.
- Add layers of protection to your organization today with the revolutionary technologies made available in just the past two years.
These statistics and recommendations are very similar to the dental industry. You don’t have to be in charge of a non-profit to learn valuable fraud detection and prevention lessons from Lee Ann’s book. Fraud prevention is something that should be upheld no matter what payment site you are on. There is software like the digital trust & safety suit by Sift, which can help with fraud prevention.
Click on the link below for a brief introduction to Lee Ann’s book.
To learn more and/or order Lee Ann’s book, visit http://booklaunch.io/leeanncrockett/preventingfraud