BDO Not-For-Profit Fraud Survey 2012

The BDO Not-For-Profit Fraud Survey 2012 is the fourth biennial BDO Not-For-Profit survey, building on the knowledge and experience gained from the 2006, 2008 and 2010 surveys.

The results of this year’s survey, combined with the information from previous surveys, provides an important benchmark for not-for-profit organisations by revealing the perception and level of fraud in the sector, examining specific incidences of fraud, and highlighting the measures the sector is using to prevent fraud.

To download the BDO Not-For-Profit Fraud Survey 2012 complete the form below:

Even if you have not experienced a fraud in your organisation, please take the time to read the survey and understand how the information it presents can help protect your organisation and its mission. It must be remembered that no organisation is immune to fraud and its consequences.

Since the inception of the BDO Not-For-Profit Fraud Survey in 2006, there has been a steady decline in the number of respondents who have suffered a fraud. The 2012 survey continued this trend with only 12% of respondents suffering a fraud, down from 15% in the 2010 findings.

Further key findings include:

• 12% of respondent organisations suffered fraud
• 25% of respondents who experienced fraud believe it is still undetected
• The most common type of fraud reported was cash theft (40%)
• The average online payment fraud was $370,000
• The average duration of each fraud was 14.5 months
• A typical fraudster was a female aged in her forties and was a paid employee in a non-accounting role
• Only 9% of frauds were committed by volunteers
• Tip offs (34%) and internal controls (33%) were the most effective ways of discovering fraud.

It should be noted though that the fight against fraud is a continuing battle.

Fraud poses a significant risk to not-for-profit organisations, but this risk that can be mitigated by implementing policies and procedures to prevent, detect and respond to it. We believe the ongoing research we are undertaking for the sector will help not-for-profit organisations in the fight against fraud.

If you would like further information on how to implement policies and procedures to prevent, detect and respond to fraud, click here.

If you are interested in being a participant in the next not-for-profit fraud survey, please contact BDO Forensic Services.

BDO Not-For-Profit Clubs Sector 2012

The clubs sector is a unique and diverse part of the not-for-profit industry, ranging from small sporting and community groups to large organisations.

Key findings from club respondents to the BDO Not-For-Profit Fraud Survey 2012 include:

• 24% of respondents had no employees, 68% of respondents hired up to 50 employees and 8% hired more than 50 employees
• 8% of respondents had no volunteers, 72% of respondents had up to 50 employees and 20% had more than 50 volunteers.

The survey was conducted confidentially and no individual information was released to survey participants.

Please click here to download a copy of the Not-For-Profit Clubs Sector 2012 Report.

Previous surveys