2010-Another Record Year For Charity Fraud

by Gary Snyder


We want to thank you for a tremendous year. As is usually the case, there is good news and there is bad news.

In the past, we have closed out the year with a sampling of the constellation of malfeasance perpetrated by board members, nonprofit executives, volunteers and politicos--all of whom have used charities to line their pockets. The upward trajectory of malfeasance continues unabated.

In 2009, we saw a significant jump in such incidents as well as a 50% rise in the amount of money stolen. In 2010, Nonprofit Imperative data shows that path has not subsided with a 25% increase and about $2 billion stolen from those to whom the money was intended to go. Because the documentation of these frauds are taken solely from public documents, members of the Association of Certified Fraud Examiners believe that this represents only 5-10% of the total amount of charity malfeasance.

This embarrassment continues to be a pox on the charitable sector. Unfortunately, interest and concern by regulators, charity leaders, business leaders, IRS, judges and prosecutors is virtually nonexistent. Watch for my upcoming book, Silence: The Impending Threat to the Charitable Sector, which will spotlight many reasons for the lack of concern as well as how to address this foreboding danger to the nonprofit sector.

Your tips and insights certainly enhanced the e-newsletter, Nonprofit Imperative, the twice-monthly journal that has tracked and collected data on hundreds of billions of dollars of charitable and nonprofit-political fraud at thousands of charities. Thanks to those of you wanting us to highlight a charity in Skunk-of-the-Month. You exhibited great patience in having to have to wait a month or more because there were so many submissions.

Whether we were briefing electronic media such as an HBO or National Public Radio or a U.S. House oversight committee or a U.S. Senate committee or helping teems of investigative reporters on the multitude of challenging problems plaguing the nonprofit sector or writing articles (blogs, newsletters) or responding to frequent inquiries, our investigations and recommendations have shed some light on an impending crisis and hopefully assisted in a better understanding of the need for openness, accountability, and effectiveness of our charities.

We are very appreciative of your support. It is remarkable.

Happy Holidays!!

Gary Snyder
Nonprofit Imperative
gary.r.snyder@gmail.com
248.324.3700