Washington Post Study Targets Fraud Disclosures

More than 1,000 nonprofits checked the box on Form 990 for reporting a “significant diversion” of assets, according to a WashingtonPost.com article on the “hidden world of thefts, scams and phantom purchases” at U.S. nonprofits. In looking at filings from 2008 to 2012, the Post found that these disclosures involved losses connected to theft, investment fraud, embezzlement and other unauthorized uses of funds.

The Post identified the list of nonprofits revealing the diversion of assets with the help of GuideStar, which gathers and disseminates federal filings by not-for-profits.