"Fraud is generally defined in the law as an intentional misrepresentation of material existing fact. Fraud may also be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading." (  In the nonprofit sector, fraud can be both financial and programmatic, for example when reports misrepresent spending information or falsely indicate projects have met expected results.

Organizations can prevent fraud by enforcing institutional policies that ensure compliance.  These policies should include a Code of Conduct Policy and Whistleblower Policy that encourages staff who speak up about instances of fraud and protects them from any repercussions.

Organizations need to ensure that staff are properly trained and knowledgeable about their institutional policies and relevant donor regulations.

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Sample Documents:

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