Not-for-profits (NFPs) are in the public eye and often held to a higher standard than both government agencies and for-profit businesses. Unfortunately, NFPs are not immune to ethical scandals and failures, which often play out in the media with attention from legislators and regulators. A 2014 survey by the Association of Certified Fraud Examiners showed that that nearly 11% of all fraud occurred in the not-for-profit (NFP) sector.
The median NFP fraud amount is rising, up from $90,000 in 2010 to $108,000 in the most recent survey. The reputational loss resulting from an ethical failure is hard to quantify. An NFP’s greatest asset is unquestionably its reputation. When an NFP’s reputation suffers as the result of an ethical issue, it does not just affect that particular organization, it affects the constituencies and communities served by the organization. It can hinder an organization’s ability to secure grants and contributions, attract new members or clients, or even put the organization at risk of heightened scrutiny from regulatory agencies and watchdog organizations. It is not only what is true about your organization, but what is perceived – and how you react to both.
To help address this need, AICPA is offering a new benefit for Section members. Ethical Advocate will provide a 10% discount off its employee ethics hotline service. The service is available 24/7/365, on-line and by phone, in 17 languages online and 200 by phone. It includes online report management for report tracking and anonymous reporter and administrator communication. Ethical Advocate’s hotline services covers millions of users across all industries, with a proven return on investment.
To contact Ethical Advocate about this service, visit: http://ethicaladvocate.com/aicpa.
The Not-for-Profit Section's Resource Library includes tools and information on ethics and other NFP governance topics. Learn more about these premium resources along with the many other benefits of membership in the AICPA Not-for-Profit Section Membership area.