How can nonprofits protect themselves from fraud?
- Know your donors and where your money comes from. Call to thank new and unknown donors that make large contributions. Monitor irregular donations and contact the donor if you don’t feel the money is legitimate.
- Host a website with information about your charity and tell your community how you are using their donations.
- Monitor the Internet for fake websites that are using your charity’s name. You don’t want your contributors to accidentally donate to a fraudulent website.
- Keep an up-to-date list of the people who are authorized to accept money on your behalf and limit access to the list.
- Provide employees with limited access to financial information. Only give employees access to the information they need to do their job. Use PayPal’s manage users functionality to set up employee privileges. You can decide how much access to give each of your employees.
Report any fraudulent donations in our Resolution Center so we can take appropriate action.