BDO Not-For-Profit Fraud Survey 2014

25 February 2014

The fifth BDO Not-For-Profit Fraud Survey has been released, providing a unique perspective for Not-For-Profits as trend data captured from almost a decade has been compiled and analysed to reveal important insights about the identification, assessment and management of fraud within the sector.

A total of 436 responses from across Australia and New Zealand were received and the findings reveal that while 90% of respondents see fraud as a problem for the sector, only 28% of respondents see fraud as a problem for their organisation. This is up 20% on the previous survey, which indicates the sector is becoming increasingly aware of fraud threats and vulnerabilities and recognising how they can impact their own organisation. 

Respondents who did not see fraud as a problem for their organisation rely on robust internal controls, organisational culture, trustworthy staff and external audits to manage their fraud risk.

This year we extended our coverage of the survey, asking respondents to report on their risk management frameworks and practices. In total 55% of respondents have a Risk Management Framework (RMF) and two-thirds of organisations with a turnover exceeding $1 million have implemented such a framework. The survey found those organisations that didn’t have a RMF suffered around $51,000 more than those respondents who did have such policies in place.

Key findings from the survey include:

  • Fraud totalling $3,229,400 was reported, with the average fraud being $22,904
  • 55% of respondents have a code of conduct while 18% have a fraud control plan
  • The typical fraudster was aged over 50 and was a paid employee in a non-accounting role
  • Collusion was present in 30% of the largest frauds reported, with a Board Member involved in 31% of cases
  • Of the largest frauds reported, the most common fraud suffered by respondents was cash theft
  • 54% of respondents do not report fraud to Police because of concerns relating to the impact of future funding opportunities and damage to the organisation’s reputation

BDO is committed to ensuring Not-For-Profits understand their susceptibility to fraud and educating them in the wide range of methods they can use to protect themselves into the future.


Download the BDO Not-For-Profit Fraud Survey 2014.