Wednesday, October 9, 2013

Two Examples Of Stopping Charity Fraud

By Gary Snyder


Two leagues were stunned recently to learn that women they trusted had been accused of stealing money from their kids’ sports organizations.
When Claudia Yamell Castillo, 34, was arrested in September and accused of embezzling $23,113.62 from the Southeast Arlington Little League while board president, the league was forced to cancel its fall season because of debt.
One week before Castillo’s arrest, Anna Eufemia Martinez, 45, pleaded guilty to a third-degree felony for embezzling $23,469 while president of the Crowley Independent Soccer Association.
Embezzlement from nonprofits happens more often than reported, said certified public accountant Christi Stinson. Stinson, who owns CH Stinson CPA, works exclusively with nonprofits, and she advises board members to understand their fiduciary responsibility.
“When you are dealing with other people’s money, it’s a trust. That’s what fiduciary means. You need to deal with the situation with healthy skepticism. Have accountability and reporting,” Stinson said.
Two people need to count the cash that comes in, Stinson said. Keeping track of that isn’t always easy, but receipts must be provided for every transaction, she said. She also recommended having at least two members sign off on checks and sending records to an outside accountant for tax purposes.
Current Crowley Board President said that the Independent Soccer Association bylaws have always required two people to sign off on purchases but that Martinez never gave the new treasurer account access when she became president.
He said the current treasurer and registrar now look over all income, especially registration dues. The entire board receives a financial report and logs are compared to track registration and cash records.
People need to understand that nonprofits are like businesses, Stinson said.
“You don’t want to question people, especially your friends. So if you plug the holes with good policies and procedures, you don’t make it personal,” Stinson said.

Read more here: http://www.star-telegram.com/2013/10/08/5231208/little-league-embezzlement-could.html?rh=1#storylink=cpy

Read more here: http://www.star-telegram.com/2013/10/08/5231208/little-league-embezzlement-could.html?rh=1#storylink=cpy



Read more here: http://www.star-telegram.com/2013/10/08/5231208/little-league-embezzlement-could.html?rh=1#storylink=cpy

Read more here: http://www.star-telegram.com/2013/10/08/5231208/little-league-embezzlement-could.html?rh=1#storylink=cpy




Read more here: http://www.star-telegram.com/2013/10/08/5231208/little-league-embezzlement-could.html?rh=1#storylink=cpy

Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Charity Navigator, Vermont Public Radio, Miami Herald, National Public Radio (NPR), Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), “Betrayal”, (a movie), NBC (on Charity Fraud…TBD), FOX2, ABC Spotlight on the News, WWJ Radio, Marie Claire, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, Charity Navigator, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Accountants News, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, American Chronicle, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, Nonprofit Blog, National Coalition of Homeless Newsletter, Finance and Administration Roundtable Newsletter, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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