NOT-FOR-PROFIT ASSET MISAPPROPRIATION IN SOUTH CENTRAL PENNSYLVANIA

Gabrielle Robinson-Fish
Liberty University

Stanley W. Self
Purdue University Global

Mohamad Majdi Sahloul
American Accounting Academy

ABSTRACT

Fraud is increasing in the not-for-profit (NFP) sector. Asset misappropriation is the
most-commonly perpetrated fraud in NFPs. Although approximately 90% of all reported frauds
are asset misappropriation, a gap in existing research results in limited data regarding asset
misappropriation in NFPs. This study contains an extensive examination of peer-reviewed
research regarding fraud topics, with an emphasis on asset misappropriation.The project
followed a qualitative exploratory case study design, interviewing participants to achieve data
saturation. Recruitment included purposive sampling and snowball sampling. After interviews,
data were analyzed using open coding, axial coding, and cross-case examination. The data
revealed two main themes regarding the type of asset misappropriation found in NFPs in South
Central Pennsylvania, and how long it takes to properly detect them. Additionally, this study
identifies the detection tools and techniques that have proven most beneficial.

Keywords: not-for-profit, asset misappropriation, fraud, theft, detection, management