Non-profits must follow strict measures to stay in compliance with non-profit status. Fraudulent schemes can hurt those efforts to maintain an ethical, well-respected non-profit.
A kickback occurs when an organization overpays for goods and services, and a vendor gives part or all of that overpayment to the perpetrator. Unfortunately, it is often not difficult for a purchasing employee to engage in a kickback scheme. One of the best ways to detect a potential kickback scheme is through electronic “paper trails.”
In the cases without a physical check to follow through the banking system, the electronic transfer has created a trail leading from the person who paid the bribe to the person who received it. Other times, the best way to ward off theft is to create an environment where staff and volunteers perceive they will be caught. Learn the signs to look for in kickback schemes contact ARA at 636-346-9273 for tips on how to implement a zero-tolerance policy.