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Fraud Can Scuttle Nonprofits But Bigger and Older Ones Fare Better

University of Dayton accounting faculty Sarah Webber and Deborah Archambeault examined nonprofit fraud for The Conversation, a global network of newsrooms "committed to information transparency and credibility." 

They write:

After a director of the Fairmont-Marion County Food Pantry embezzled more than US$50,000, it had to close for two months in 2009 – leaving 1,200 West Virginians who depended on it in a temporary lurch.

The effects of this kind of malfeasance may appear straightforward. Charities caught committing fraud become untrustworthy in their donors’ eyes. Without money, they no longer can serve the public.

That food pantry overcame that crisis and reopened. But as scholars who research nonprofit fraud, we wanted to discover what long-term consequences befall organizations that are supposed to do good things when some of their staff are caught doing bad things.

Continue reading the full article here.


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