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Dealing With Stealing From Non-Profits

Nov 1, 2013|

Peggy Penders

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Automatically Generated Transcript (may not be 100% accurate)

There have been eight area nonprofits that say they were either stolen from in the past four years -- lost lots of money in most cases millions of dollars. The Washington Post did a study of tax filings on the nation's nonprofits they overlooked -- records for those that had diversions basically paths. We have a list of the local ones from that database online at WB and dot com but let's talk about it further now with Peggy Penders from the better business bureau of -- New York. -- thanks for joining us. Good morning picture -- Let's look at these numbers and put in perspective for me eight nonprofits locally almost nine million dollars and thefts in four years. Is this an alarm bell. While we certainly are concerned when we don't have the performance -- of charities that were hoping for. The Better Business Bureau is just about to pursue new program called charity preview. Where we are inviting charities to be reviewed the -- asking. Donor to protect us and ask -- to -- charity that they -- Tristan. -- in relationship to these. Situations and just been reported we don't have any data on them just yet because we're just beginning the process here the better that the -- buffalo. Which you know we're wondering your -- how -- a nonprofit organization that has control of so much money. Lose so much money without knowing it until several years later how often are they wanted it. Look if it does come back to you know how they're pursuing their own internal transparency. Of their accountability. That's why the candidate you prefer a number of years has been reviewing charities and the national model and we do have twenty different standards that we use. To evaluate charities and it's very arduous process that we work with the charities. You know he -- he had there's no charge at all for them to participate. But it does come back to you know what kind of practices to they haven't played OK transparency any providing the public. There comes back to those checks and balances. In each organization that you know hit a different process. But we do have a formula to work with them to move through that process. Embezzlement is certainly one issue but I imagine for the donor the other part of it all is how much of the money goes to administration and salaries and stuff like that. And how much actually goes to the cause the supporting. Well it does that's certainly one of the factors and in there is that he kind of went. A base line -- there would be to look for at least 65%. Total expenses. -- current program activity. That is certainly one of the areas that we look at finances is always very important and donors are looking for sure they do want to provide. On their funds to organizations that they feel is doing the battle in the most for any contribution that they're giving them. Peggy is it possible that some people some of these organizations were theft and embezzlement was involved. Did not do their jobs. Certainly there are some situations that that they didn't go the way it. -- security had planned. When it comes to the fact. You know not be familiar with. Any of these individual cases. They're actually they're evaluating. Internally you know how to -- an opinion what do we -- to never let it happen again. We refer to these cases you know unfortunately. Too often. And that's one of the reasons why the Better Business Bureau has been doing that at a national level and our president here a couple of very excited to. Provide this service to the public here. Now on a local couple. Peggy thanks for joining us this morning. That's Peggy -- with the better business bureau of west New York the list by the way from the Washington Post. Of local nonprofits in the losses on mine today at WB and account.