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Resource

Whistleblower Protections in the Nonprofit Sector

Source: Nonprofit Risk Management Center

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The Essential Role of the Whistleblower in American Society

Problem Statement:

Your employees are on the front lines of your business on a daily basis and can be your eyes and ears for anything going on in the company. Therefore, you need a streamlined process to encourage employees to come forward and share what they know in an environment that not only enables them to feel good about speaking up, but gives you and other decision makers the information should you need to make a formal investigation.

Onit Solution:

Onit’s Whistleblower App lets you customize the type of forms and information gathering materials you will need to investigate any alleged dishonest activities brought to you by employees. You will be able to keep documents in one place and quickly and easily share them with other responsible parties. In addition, you will be able to know how many outstanding cases you have, see where they are in the pipeline, and be able to coordinate with all parties involved.

Value Prop:

By standardizing your procedure to enable whistleblowers to come forward, you will save your reputation and ease concerns from your employees on what would happen if they come to you with information.

Why Implement a Whistleblower Policy?

All organizations, including universities, governmental entities, and nonprofits, should consider implementing whistleblowing provisions. Consider these important facts from the Association of Certified Fraud Examiners’ 2006 Report to the Nation on Occupational Fraud and Abuse:

  • More than $600 billion in annual losses is attributed to fraud.
    • Anonymous reporting mechanisms are the antifraud measure with the greatest impact on reducing losses: Companies with anonymous reporting mechanisms reported median losses of $100,000, while those without reported median losses of $200,000.
  • Tips from employees, customers, and vendors and anonymous tips account for:
    • 34% of the detection of all fraudulent activity
    • 34% of the detection of fraudulent activity for not-for-profit organizations
    • 39.7% of the detection of fraudulent activity for government agencies
    • 48% of the detection of owner/executive fraud schemes.
Source: Association of Certified Fraud Examiners