Fraud and Corruption Threats to NGOs and Nonprofits

Open, View, and/or
Download this Document

Total Length: 442 words ( 1 double-spaced pages)

Total Sources: 5

Introduction

Combating fraud and corruption in nonprofit organizations (hereinafter alternatively “nonprofits”) and/or non-government organizations (NGOs) is an especially challenging enterprise because of the nefarious methods that are used and the corrupt practices that extent to the highest government levels that are endemic to many of the countries served by these organizations (Menzel, 2009).

Main Points to be Addressed

1. What types of fraudulent and corrupt practices are most common in nonprofit organizations? For example, although nonprofit organizations are vulnerable to many of the same types of fraudulent and corrupt practices experienced by other public and private sector organizations, asset misappropriations are by far the primary factor. In this regard, Zack (2009) emphasizes that in nonprofit organizations, “More than 80 percent of all reported frauds involve some form of asset misappropriation. And, to no great surprise, the asset most frequently misappropriated is cash” (p. 7). Despite cash being the most frequently misappropriated asset, other fraudulent practices can involve:

• Revenue and cash receipts (collections) schemes;

• Purchasing and cash disbursement schemes;

• Payroll and employee expense reporting schemes; and,

• Noncash asset misappropriations (Zack, 2009, p. 7).

Moreover, each of the foregoing practices can be perpetrated using different methods, with cash being the target in the first three and other resources such as inventory or equipment being targeted in the last (Zack, 2009).

Stuck Writing Your "Fraud and Corruption Threats to NGOs and Nonprofits" ?

View All Our Example Fraud and Corruption Threats to NGOs and Nonprofits

Have A Custom Example Essay Written



2. What types of fraudulent and corrupt practices are most common in NGOs? Although it is reasonable to assume that NGOs are vulnerable to the foregoing types of asset misappropriations, many of the countries in which they operate also have widespread corruption (Menzel, 2009). This means that NGOs will likely suffer from unique combinations of fraud and corruption that will be especially difficult to overcome.

3. What are the most corrupt countries in the world? While corruption exists in virtually every country in the world, the ten countries rated as having the highest levels in 2016 by Transparency International’s Corruption Perceptions Index in descending order were as follows:

· Somalia;

· South Sudan;

· North Korea;

· Syria;

· Yemen;

· Sudan;

· Libya;

· Afghanistan;

· Guinea-Bissau;

· Venezuela (Sile, 2017).

These ratings suggest that nonprofits and NGOs operating in these and other highly corrupt countries are faced with some especially daunting threats of fraud and….....

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Fraud And Corruption Threats To NGOs And Nonprofits" (2017, October 10) Retrieved June 5, 2026, from
https://www.aceyourpaper.com/essays/fraud-corruption-threats-ngos-2166162

Latest MLA Format (8th edition)

Copy Reference
"Fraud And Corruption Threats To NGOs And Nonprofits" 10 October 2017. Web.5 June. 2026. <
https://www.aceyourpaper.com/essays/fraud-corruption-threats-ngos-2166162>

Latest Chicago Format (16th edition)

Copy Reference
"Fraud And Corruption Threats To NGOs And Nonprofits", 10 October 2017, Accessed.5 June. 2026,
https://www.aceyourpaper.com/essays/fraud-corruption-threats-ngos-2166162
   

Open, View, and/or
Download this Document
order custom essay example