Date of Conferral

2023

Degree

Ph.D.

School

Management

Advisor

Elizabeth Thompson

Abstract

Fraud has had disturbing effects which can hurt many nonprofits. Having weak practices can increase risk and invite perpetrators. Small nonprofit organizations are especially at risk. The research problem is that many small nonprofits do not employ strong practices within their organization, which leaves them open to fraud. The purpose of this qualitative case study was to explore the obstacles and enablers that leaders of small nonprofit organizations in the eastern United States face when employing proper internal control practices to protect the organization from fraud. Agency theory framed this study when examining agency problems that leaders face when employing practices. The overarching research question pertained to the perceptions of leaders of small nonprofit organizations regarding the use of internal control practices that protect the organization from occupational fraud. A qualitative exploratory case study approach was used to gather information from leaders of nonprofits. A sample of 10 leaders participated in the study. Data were collected through interviews by phone, email, and in-person and analyzed using hand coding and NVivo to uncover themes. Study results provide a better understanding of how small nonprofit leaders can strengthen the organization by using proper practices. Overall, leaders of nonprofits expressed the need for a solid board of directors, having regular meetings, good accounting practices, training, background checks, having skilled volunteers, and set policies and procedures. The implications for positive social change are through proper practices that can help lead to increased financial integrity and an increase in contributions from donors.

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