05/20/2026
Nonprofits are built on trust- but trust still needs controls.
Not-for-profit organizations can face unique fraud risks, especially when financial responsibilities are concentrated in too few hands, policies are informal, vendor oversight is limited, or internal controls have not kept pace with growth.
CPAs can play an important role in helping nonprofit leaders and boards spot potential red flags, including:
• Weak segregation of duties
• Unusual vendor activity
• Missing or inconsistent documentation
• Limited board financial oversight
• Unexplained changes in expenses or payroll
• Cybersecurity and email compromise risks
Identifying these warning signs early can help organizations tighten controls, strengthen accountability, and reduce exposure before small issues become serious problems.
At Jacobson Jarvis & Co., we support nonprofit organizations with audit and assurance services designed to promote transparency, compliance, and financial integrity.
Read the Journal of Accountancy article below, and contact Jacobson Jarvis & Co. to discuss how stronger oversight and internal controls can help protect your organization’s mission.
CPAs can help not-for-profits spot the red flags of common schemes, so they can take steps to tighten controls and reduce exposure.