STOP Stealing Money From Your Nonprofit!
Вставка
- Опубліковано 21 лип 2024
- Did you know that misappropriation of funds is rampant in the nonprofit sector? Maybe even an epidemic? This potentially includes embezzlement on a pretty large scale. Could it be that you’re guilty of it, too? The problem is worse than you think and is usually hidden in plain sight. Today’s video discusses nonprofit embezzlement.
📚 ADDITIONAL RESOURCES:
•VIDEO: The Fiduciary Duty of Nonprofit Board Members • The Fiduciary Duty of ...
•VIDEO: Who REALLY Owns a Nonprofit? • Who REALLY Owns a Nonp...
🏆 YOUR NEXT STEP:
•Fill out this form for a FREE consultation on how to start a nonprofit: bit.ly/3Tu9nYE
•Register for Fundraising TV: www.501c3.org/fundraising-tv/
•Download the FREE eBook “10 Things You Need to Know Before Starting a Nonprofit” bit.ly/3XhFag0
0:00 Introduction
1:22 Using Nonprofit Assets for Personal Use
2:35 Using Organizational Funds as Your Own
4:05 Best Practices
4:39 Conclusion
If you need help filing for IRS 501(c)(3) status, we’d love to help. Fill out the form at bit.ly/3i6rFxz or give us a call at 888-361-9445.
I don't run any non-profits myself, I'm firmly in the for-profit small business camp, but I've worked with a few small non-profits that have been a bit sketchy. Once case in particular that comes to mind was a director for a local non-profit sports club who used the non-profit card for personal groceries, period products for his wife and even gambling. The embezzlement only surfaced when they hired a new accountant who thankfully wasn't afraid to demand receipts, ask tough questions about purchases and reported her findings to the board.
Exactly what we're talking about, Cytlan. So unfortunately common out there.
Always enjoy 😊
Thanks for watching!
Great video Greg 👍
Thanks 👍
This is very intriguing. But honestly, I'm somewhat surprised by a few of the examples. I was expecting major embezzlement. But, a business lunch in? Personally, it's not my cup-of-tea (no pun intended). But, I know of one company which has a small allowance for expenses. And, it doesn't need any type of verification. So, he'll take his wife to a lunch in. I also wouldn't think driving a company vehicle would be considered embezzlement.
This lack of understanding is exactly why it's so pervasive. People don't conceive that what they're doing is illegal, or if it is, it's not that bad. Major embezzlement is (fortunately) rather rare. But small-time theft and misappropriation of resources collectively add up to way more than anything stolen on a large scale. Again, keep in mind that this doesn't apply to most small businesses in the same way. The owner of that business can do pretty much whatever they want with business assets and money, so long as they account for it properly on their taxes. But an employee or board member of a nonprofit has no ownership stake in the organization's assets at all. Any personal use of corporate assets or money for non-business purposes is strictly forbidden. We're not talking about a working lunch. We're talking about buying food or anything else with nonprofit funds that don't have a business purpose. You cannot do that, ever. It is theft. As for the company vehicle, it can be used for business purposes. But any personal use, including commuting, requires the employee or board member to claim as income any personal use at the current IRS mileage rate. This part even applies to commercial businesses.
can the private foundation help individuals that are in dire need of help to put food on their table? not related to you the father has airds the daughter has cancer?
Generally speaking, yes.