How to Report Fraud in a Nonprofit OrganizationNovember 8, 2012 at 10:35 AM
While organizations such as charities and religious groups are given nonprofit status, abuses can still occur. As much as $40 billion annually has been lost due to fraudulent activity by nonprofit organizations. If you suspect that a nonprofit organization you are working for or have contributed to is guilty of fraud, It is important to know how to effectively report it, so that it can be stopped.
1. Lodge a complaint with the Better Business Bureau. If, for example, you have been a contributor to a nonprofit organization and believe monies have been misused, go directly to BBB's website at www.bbb.org/us/charity/ and file a complaint. Provide your contact information and give specific details about why you are filing a complaint. Be aware that the BBB gives the charity or nonprofit a chance to deny or resolve the issue.You can also write your complaint and mail it to: BBB Wise Giving Alliance, 4200 Wilson Blvd., Suite 800, Arlington, Virginia 22203. Once you report a charity or nonprofit, your complaint will remain a matter of record with the BBB, so that future potential contributors will be forewarned.
2. Contact the Internal Revenue Service with your suspicions. Go to the IRS website at www.irs.gov and fill out their Form 13909. Print it out and mail the completed form, along with any supporting documentation, to: IRS EO Classification, Mail Code 4910DAL, 1100 Commerce Street Dallas, TX 75242-1198, or fax to 214-413-5415 or email to firstname.lastname@example.org. Supplying specific examples and documentation to back up your claim, such as copies of files, financial reports and transcripts that show inconsistencies, will bolster your credibility. If the IRS feels that you have provided adequate evidence of fraud, it will investigate.
3. File a complaint with the Association of Certified Fraud Examiners chapter nearest you. You can find that chapter by going to www.acfe.com. Upon receipt of information that substantiates your claim of fraud, they will investigate and come up with their own findings.
4. Report fraud suspicions to the U.S. Postal Inspection Service. If a nonprofit organization has been sending out letters requesting contributions that have not been used as promised, this constitutes mail fraud. You can fill out a complaint form at postalinspectors.uspis.gov/forms/MailFraudComplaint.aspx .
5. Go to the media. If you believe that a nonprofit organization has committed fraud, get in touch with a local newspaper or television news station. Be prepared to provide as much information as you can, such as documentation, financial reports and witnesses, to back up your claims. If they feel your suspicions are merited, they may do an investigative report that exposes the fraud.
Read more: How to Report Fraud in a Nonprofit Organization | eHow.com http://www.ehow.com/how_5099703_report-fraud-nonprofit-organization.html#ixzz2BeKKJ1JQ
Complaints about registered charities
Should you wish to make a complaint about a registered charity, please email the Compliance Division of the Charities Directorate by selecting the link below. Please provide the name and registration number of the charity along with detailed information in support of your complaint.
Please note that, due to confidentiality requirements, actions taken by the CRA are not made public, except in cases of revocations, penalties, annulments, and suspensions. However, all complaints are reviewed and dealt with in an appropriate manner. The identity of complainants remains confidential.
If you do not wish to email, you can write to, or call, Client Service - General enquiries and your complaint will be redirected to the Compliance Division.
All charities must comply with Canada’s anti-terrorism legislation, and the Criminal Code. Charities are responsible for ensuring that they do not operate in association with individuals or groups that are engaged in terrorist activities, or activities in support of such activities. An applicant may be denied registration, and a charity’s status may be revoked, if there are reasonable grounds to believe the applicant or charity operates in such a way as to make its resources available, either directly or indirectly, to any entity, whether or not it is listed under the Criminal Code, that engages in terrorist activities or activities in support of them. The CRA’s Charities Directorate has produced a Checklist for Charities on Avoiding Terrorist Abuse to help Canadian charities identify vulnerabilities to terrorist abuse, as part of good management practices. (For more information about these provisions, see Charities in the International Context.)
Here is a sample letter of complaint in Canada.