I believe JD started to make a comment re: the embezzlement/fraud being common in small businesses or family businesses, and I do not have the stats, but this is somewhat true.
I've had direct experience in different organizations, some nonprofits and a closely-held private company. I've also seen it from the outside in family-run orgs. U…
I believe JD started to make a comment re: the embezzlement/fraud being common in small businesses or family businesses, and I do not have the stats, but this is somewhat true.
I've had direct experience in different organizations, some nonprofits and a closely-held private company. I've also seen it from the outside in family-run orgs. Usually nobody goes to the cops, but if the orgs are to persist, the person siphoning off money has to get cut out in some way, and the orgs put on more professional-type footing, with separation of duties, regular audits, etc. For the non-profits, they got boards of directors separate from the management of operations. They learned the importance of good governance and controls.
In some of these cases, it wasn't so much stealing as a divergence of visions -- it was founders feeling like they were entitled to certain compensation (this has to do with the non-profits), and others not agreeing. Sometimes it takes a parting of ways (and in this case, the founder left... and founded a new non-profit with a new vision, and it sounds like it's doing just fine. Nothing wrong with that.)
I don't know if there's some kind of "Here is a little best practices at different scales" package from some kind of "build your non-profit" org, but I know there are such things for towns....
...and I'm continuing this in a separate note, bc I jumped off your Florida story with a podcast of my own (and I don't know if this note will post... not sure of your policies on this):
I tend to cover public finance issues, so I'm more interested when it goes wrong in towns and cities (states are a matter on an entirely different scale). My specialty is public pensions, and I've seen it go really wrong for some funds. (Been tracking that since 2008)
In the podcast, I point out the case of Rita Crundwell in Dixon, Illinois, a notorious case of a lack of separation of duties leading to a 20-year embezzlement to the tune of $54 million from a small town. It was amazing. The town was later able to claw back $10 million in sales of Crundwell's assets and $30 in lawsuits against the auditors and banks who never raised red flags against Crundwell in those decades.
I believe JD started to make a comment re: the embezzlement/fraud being common in small businesses or family businesses, and I do not have the stats, but this is somewhat true.
I've had direct experience in different organizations, some nonprofits and a closely-held private company. I've also seen it from the outside in family-run orgs. Usually nobody goes to the cops, but if the orgs are to persist, the person siphoning off money has to get cut out in some way, and the orgs put on more professional-type footing, with separation of duties, regular audits, etc. For the non-profits, they got boards of directors separate from the management of operations. They learned the importance of good governance and controls.
In some of these cases, it wasn't so much stealing as a divergence of visions -- it was founders feeling like they were entitled to certain compensation (this has to do with the non-profits), and others not agreeing. Sometimes it takes a parting of ways (and in this case, the founder left... and founded a new non-profit with a new vision, and it sounds like it's doing just fine. Nothing wrong with that.)
I don't know if there's some kind of "Here is a little best practices at different scales" package from some kind of "build your non-profit" org, but I know there are such things for towns....
...and I'm continuing this in a separate note, bc I jumped off your Florida story with a podcast of my own (and I don't know if this note will post... not sure of your policies on this):
https://marypatcampbell.substack.com/p/fraud-and-embezzlement-how-to-prevent
I tend to cover public finance issues, so I'm more interested when it goes wrong in towns and cities (states are a matter on an entirely different scale). My specialty is public pensions, and I've seen it go really wrong for some funds. (Been tracking that since 2008)
In the podcast, I point out the case of Rita Crundwell in Dixon, Illinois, a notorious case of a lack of separation of duties leading to a 20-year embezzlement to the tune of $54 million from a small town. It was amazing. The town was later able to claw back $10 million in sales of Crundwell's assets and $30 in lawsuits against the auditors and banks who never raised red flags against Crundwell in those decades.