Internal AND External Fraud Risk for Nonprofits

Nonprofits face the unique threat of scams, fraud, or theft—whatever you wish to call it—from both internal and external sources. This has the potential to be even more costly than scams faced by solopreneurs and authors as discussed in the linked blog posts. 

PBMares notes a median reported loss in 2024 of $76,000-$85,000 - egad! Bear in mind, "nonprofit" covers a range of organizations from those small enough to not have any salaried staff to large hospital chains for where such large numbers may come from. 

Internal Fraud
Examples noted can occur in any size organization. The PBMares article and Church Mutual Insurance are resources for this information.

• Corruption: Outright theft. "Theft" can be anything from swiping office supplies to products that would otherwise be sold to customers for personal use or, more often, resale. It can also include pocketing cash at events from gift shop or raffle ticket sales. 
• Billing fraud: This can include billing for a more expensive item.
• Check or payment tampering: The PBMares article shares a story of someone opening a bank account with the same name of the employer at a different bank and simply diverting checks to the personal account.
• Skimming: This includes overcharging and pocketing the extra.  

Red Flags
These are things to pay attention to with staff and volunteers:

• Living beyond their means
• Financial difficulties
• Extremely close relationships with vendors
• Defensiveness
• Bullying
• Unwilling to share duties

Detection

• Whistleblowers: anonymous online forms, email, or message tip lines
• Fraud awareness training
• Regular internal audits
• Management reviews
• More than one person as a system of checks and balances

​External Fraud
In this digital era, outdated security mechanisms, AI helping scammers sound very convincing, and trusting volunteers open the door to risk for nonprofits. Lack of documented policies about fraud or theft responses and what/how to share information with external agencies increase nonprofit risk according to the same PBMares article.

According to Nonprofits Insurance Alliance, ​"losses tied to voluntary transfer of funds are not covered under standard insurance terms." There are a number of examples shared on the post from those impacted by scammers. Information from Intermixit and Church Mutual Insurance are included in this list of scams as well. 

Types of scams

• Cyberattacks: Cautiously review who messages are actually from, not just who they say they're from (bogus email addresses or phone numbers). Opening attachments from unknown or fake sources can lead to malware incidents or ransomware that install harmful software on your system to lock it from your use with the intent of stealing information or funds, insisting you pay a ransom to regain your access. Back up your data off-site, install antivirus and software to detect threats. Staff/volunteer training are useful.
• Phishing: Emails, texts, or messages on your website's contact form "that appear to be from partners, lawyers, banks, contractors, common software vendors, or other nonprofit organizations" per Nonprofits Insurance Alliance. Another form of phishing is "from" a respected leader in the organization; Intermixit calls this Business Email Compromise. 
• Vendor fraud: Be careful of fraudulent invoices. 
• Charity fraud: Impersonating your nonprofit and soliciting donations in your name. Regularly monitor the internet for the name of your organization, make sure your donation page is secure, and ensure donors/the public know how to safely donate to you. 
• Grant scams: Verify, verify, verify. Be cautious of unsolicited grant offers, especially if they insist on payment from you up front, and research the grant source. 
• Check scams: You receive a (fake) check as a donation or grant with a refund then requested where the nonprofit loses funds by promptly trying to respond without asking enough questions. 

How to Protect Your Nonprofit
Per The National Bank of Indianapolis and Nonprofits Insurance Alliance:

• Verify donors and vendors: Contact the donor or vendor directly and do some research on websites and social media. 
• Wait for clearance: Be patient - banks take time. Don't issue a refund (or spend the funds!) until the check has cleared. If someone is demanding immediate responses, especially if money is involved, let the situation sit overnight and alert others. 
• Educate your team: Train about signs to look for, ask others for validation, and two-factor authorization of processes are useful.
• Consult with your bank: Your bank may have training and tools for your team to spot and mitigate scams.

Your Turn
This concludes our series about scams facing solopreneurs, authors, and nonprofits. Any hard lessons you've learned or heard from others? Love to hear to keep each other aware!

Let's Chat or find me on LinkedIn or Substack to continue the conversation! 

Are Scams on Authors Unique?

Yes. On research for this series, it turns out each market tends to have its own distinct brand of scam artists. There are likely some overlaps, but there are definitely unique things to be aware of.




Types of Author Scams
Combining information from this NY Times article, Authors Guild, and Scottish Book Trust:

• Fake Publishing Opportunities: Scammers send unsolicited emails claiming to have found your work on Amazon or elsewhere, offering "traditional publishing" deals that require upfront fees. Dan Barry notes in his February 2026  NY Times article "Scam artists overseas, using artificial intelligence, are impersonating publishing figures on illegitimate websites and in flattering emails, to hoodwink both fledgling and established authors into paying fees for services never to be rendered. The literary chorus sounding the alarm includes the novelists George Saunders, Rebecca Makkai and Colson Whitehead; the Authors Guild and Bomb magazine; numerous book agents and publishing houses; and, quite recently, the National Book Foundation."
• Bogus Literary Marketers: Scammers promise to raise an author's profile, generate fake positive reviews, or book them for non-existent high-profile interviews, often for a high fee. Dan Berry urges caution in falling for a "book-fair scam" sharing many promises, requiring many fees, only to have a single copy of your book in a display with dozens of others. 
• Repurposing Scams: Scammers, often operating internationally, target self-published often first-time authors, draining resources with bogus "re-licensing" fees, or fake book return insurance. 
• Impersonation: Imposters pose as known agents, publishers, or even established authors, using fake email domains or slightly misspelled, legitimate-looking ones. While an author may receive emails assuring you they're from a legitimate source, including popular authors, sending a message to the popular author often reveals you are one of many approached "by" them. Authors have also had their name outright stolen and used by others trying to sell books created by AI with titles very similar to existing work of the author--Jane Friedman is an excellent example of this.

How to Avoid Scams

• Never Pay Upfront: There will be no fees from traditional publishers and agents to review your manuscript.
• Verify Everything: Check your sources. Look for the company listed in your communication. See if that person is on LinkedIn or somewhere to confirm they're real. Stop a minute if Stephen King or Danielle Steel (as examples) is sending you a "personal" invitation.
• Check Email Addresses: Look for subtle misspellings—zeroes for o's as an example.
• Unexpected Attachments: Be very careful opening items that may contain viruses or malware to attack your files.
• Seem to Know You Very Well: Be wary of a lot of personal information about you. Scammers are making great use of AI to scrape the internet for information.
• Be Wary of Unsolicited Contact: Be suspicious of amazing opportunities coming out of the blue including "from" publishing houses, offers to be on podcasts, and even movie deals per this Author's Guild article. 
• Review Contracts Carefully: Legitimate publishers and agents offer contracts without hidden fees or immediate demands for payment. 
• Check Your Spam Filters: Update passwords periodically. Check your business website and social media security.

Resource for Authors
Keep Writer Beware of the Science Fiction and Fantasy Writers of America (SFWA) bookmarked for reference! The link is to the SFWA website but Writer Beware has its own mission, website, blog, and socials to keep authors and the publishing industry informed about the latest scams to help recognize and avoid them. 

Your Turn
Have you been scammed or stopped short of getting caught by one? Love to hear your tale and how you handled it so we can all learn together to keep each other safe!

​Let's Chat or find me on LinkedIn or Substack!

Are Scams Really a Thing?

The short answer is yes - big time - in most industries and it's on the rise, often thanks to the rise of AI. My findings researching scams in my three customer bases - freelancers/solopreneurs, authors, and nonprofits - resulted in so much information that is particular to each industry, we'll take time to review the issue separately for each field.

Per this May 2025 article on Netcraft, "According to the Federal Trade Commission (FTC), in 2023, more than $500m was lost to job-related fraud in the U.S., more than double the 2022 figure ($200m). It is anticipated that 2024 will beat that record." Follow the link embedded in the article showing the most recent data, 3rd quarter 2025. 

What Kind of Scams Are Out There?
Common scams feature fake job postings, requests for upfront fees, payment fraud, or phishing for personal data to steal identities per an AI search overview. Scammers often promise high pay for little work, rush the hiring process, and strive to communicate off-platform to avoid detection. The Netcraft article above notes "greater competition, lower wages, the cost-of-living crisis, the rise of zero-hours gig work, etc. – have created an ideal climate for criminals to exploit job seekers."

There are a few "gig" job posting sites like Upwork and Fivrr that, unfortunately, make it challenging to determine legit vs fake job postings. This July 2025 blog post from Gigradar.io devotes a lengthy post to Upwork scams. 

Image: Gigradar.io

Fortunately, there are more real jobs than scams on Upwork as of this writing - 88-94% real work vs 6-12% scam jobs. The article notes that over 12,000 scam jobs were removed from Upwork in 2024. While it's hard to imagine being so continually wary of scam tactics, the platform is trying to police the situation.

I definitely recommend looking at this post as they have some great graphics and charts to enhance the information.

Red Flags to Alert You
The following is a compilation of common scams freelancers may face. These are based on personal experience and posts on Clearvoice, Sumsub, and Moxie.

• Contact from out of the blue
• Rushed process
• Pay that's too good to be true
• No details about the company or person online
• Poorly written communication
• Job will not agree to any payment up front as a deposit or retainer
• Will not agree to a contract
• Registration fees, security deposits, or requests for personal (financial!) information from you - identity theft is real.
• Extensive "test" projects (a.k.a. "how to get work done for free")

How To Protect Yourself
First and foremost, be wary. "If it's too good to be true, it probably is" didn't become a wise saying for no reason.

• If it seems at all "off," pause - take your time to respond. Scammers are often seemingly hanging on your every word and in an immediate conversation. Time is of the essence! (supposedly)
• Scammers will sometimes provide just enough potentially legitimate information - saw your name on a club or group you currently or have belonged to - but the request is not quite right somehow. 
• A gut check is valid - listen to your gut feeling.
• Share the scenario with others for an outside perspective. It's easy for our judgement to be clouded when we're eager for work or an opportunity sounds exciting. 
• Don't by any means pay to get work or as part of the process! 
• Be extremely careful about any "test" or free work - keep it extremely limited. Doing a small sample work isn't a bad idea to ensure you're a good fit for a job, but keep it small at most. 
• Give the minimum of personal information.
  • Create an online protected system for payment, such as through Square, PayPal, or Stripe - options through your website.
  • Zelle through your bank can work if it's a one-way system - you can receive payment but it can't be withdrawn without your authorization. 
  • An employment service (Fivrr, Upwork) may have a payment platform to work through - keep the communication on platform. 
  • Never, ever give out your social security number, credit card number, or address and use great caution in sharing your phone number. 

What Prompted This Post
I received an email from someone:

• out of the blue (red flag)
• for a 35-page proofreading job (fairly small)
• deadline in 4 days (red flag but not huge - grace time built in - nice)
• payment of $2,300 (bwahahaha! No one is paying that kind of money for 35 pages of text.)
• conversation by email was immediate and a flurry like someone was messaging me, waiting for responses (red flag)
• discussion about a contract or partial, even limited, payment up front was not an option at all (red flag)
• I was unable to find the supposed company name online at all on a search, and the individual was not on LinkedIn or had a generic enough name not to be easily found. (red flag) 

A Whole Series About Scams - Really?
I was surprised to learn that there are scams very unique to each of my client types—freelancers/solopreneurs, authors, and nonprofits. This post would be long and unwieldy or try to be everything to no one to try to tackle the information in one post.

I hope you'll join me over the next couple of weeks to learn about ways to protect yourself and what to look out for!

Your Turn!
Have you been a victim of a scam artist, falling for it hook, line, and sinker? Any stories to share of falling for a scam or detecting one a mile away? Any tips and tricks you've learned to protect yourself?

Let's Chat or find me on LinkedIn and Substack to share stories so we can all grow together!

What Is Peer-to-Peer Fundraising?

Let's start with a basic frame of reference. Bloomerang, a donor management system, offers this guidance.

Peer-to-peer fundraising is when volunteers/supporters take an active role to encourage friends and family to also support a favorite organization. Organizations recruit supporters to widen the reach by encouraging their network to participate in a fundraising activity or event. 

Crowdfunding campaigns are similar but different.

• Crowdfunding asks supporters to share the same brand campaign created by the nonprofit with their personal network.
• Peer-to-peer fundraising enables supporters to create their own personalized page for fundraising. These pages may be based in a template format but have aspects ready to add personal stories and content.

Types of Peer-to-Peer Campaigns
Per the same Bloomerang article:

• Rolling: no time limit and no set deadline
• Time-based: can last several days or weeks, often tied to an event
• Giving Days: 24-hour duration, associated with specific giving occasions (e.g Giving Tuesday, World Hunger Day)

Starting Your Peer-to-Peer Campaign

• Determine your goals
  • Types of goals: possibly raise funds, increase brand awareness, increase social media following
  • Break down the finances: If you're aiming for $20,000 for your project, how many volunteers will you need to realistically consider achieving a portion of that goal? (if you aim for at least $400 per person, you're going to need to enlist the assistance of 50 supporters to contact their network)
• Choose a fundraising platform: There are many out there.
  • Large full-management platforms: Bloomerang, Neon One, OneCause
  • Donation landing pages: GoFundMe, GiveButter, NEDDIE, and Chuffed as examples
  • Variety of fundraising platforms available and features to look for per Bloomerang and Kindful
• Recruit your volunteers and supporters: 
  • Be realistic: Each individual can generally only raise so many funds from friends and family. Set achievable goals for your nonprofit and your team of volunteers. Give everyone a chance to succeed on your behalf!
  • Individual contact: Personalize your request. It makes a difference in volunteer assistance.
• Support your team: Provide the tools to succeed. You'll want a selection of images for your team to personalize their message—maybe share a link to a Canva design they can personalize. Host a training session to answer questions, provide answers to questions their network may have, provide key words/phrases and an initial set of stories volunteers can draw from to inspire their personal stories. 
• Celebrate your achievements: Shout-out everyone you can for whatever reason you can come up with! Keep the enthusiasm high and encouraging. 
• Thank your team of supporters: Thanks are always appreciated, especially during and immediately after your event, but even long after your event. Share how their efforts continue to make a difference and your gratitude. Thank your team leaders and new donors.
• Track campaign data: Follow the numbers - keep an eye on what worked, what didn't, and ways to approach this project next time.

Campaign Styles
Peer-to-peer campaigns can take a variety of forms.

• Online: Heavily based on social media channels, virtual-a-thons
• A-thon style: Read-a-thon, Cook-a-thon, Walk-a-thon, and more
• Matching gift drive
• Wedding or birthday drives: Facebook has a great platform for this from a list of approved nonprofits. It's not hard to get your nonprofit added to the list. 
• Golf tournaments
• Variety of ideas from Bloomerang

Is It Worth It?
Many say yes. People give to people - friends support friends. There's an element of peer pressure to peer-to-peer campaigns that does fuel donations. According to Kindsight, this style of fundraising has continued to grow since 2023. 

This type of fundraising is currently appealing to the Millenials and Gen Z crowd which value flexibility and the ability to align with their identity and values. Mobile-first platforms, speedy downloads and website access, clear donation button options, and easy payment methods are key to success according to GoFundMe. 

GoFundMe tempers the excitement with news that dollar amounts are declining on Facebook and, while a-thons may draw a crowd, the amount raised is declining. GoFundMe also indicates peer-to-peer campaigns are evolving into more community fundraising where volunteers/donors take on campaign activities more actively. ·      

​Supporters want to help you reach your fundraising goals, but they’re not always sure what to do next, when to share, or how to succeed. Providing coaching and ongoing support is one of the most critical elements of a successful community fundraising strategy.

Get to the Point
Peer-to-peer and crowdfunding fundraising options are great tools for any nonprofit organization. However, they take time to plan and prepare for. 

• Decide on your goals.
• Decide the type of campaign or fundraiser you will create.
• Decide on your timing - when to start and how long to last.
• If your goal is a dollar amount, how many volunteers/sponsors/team captains will you need to raise how much in what time to achieve your goal? Depending on your faithful group, $500 may realistically be the most to hope any team attempts to raise as friends will likely give small amounts that build. 
• Decide on a donation platform and build it with your template or initial landing page. Make sure your platform offers the option for others to create their own donation page to personalize. 
• Create a training plan and materials your team can use in the campaign on your behalf.
• Find folks willing to support your campaign plan by sharing the news with their network. If you have a really big goal, you're going to need a lot of people to share the news. 
• Be prepared to be active and involved with your team throughout the campaign to inspire, thank, and cheer for each other. This is time consuming!
• Be ready with your end-of-campaign thank you's for your team and donors, welcoming newly discovered supporters to your organization.
• Make time and ensure you have a plan to review the data after the campaign to learn what went well and ways to improve next time.

Have You Tried Peer-to-Peer or Crowdfunding Campaigns?
How have they gone? Love to hear your successes and challenges so we can learn and grow together! Let's Chat or find me on LinkedIn!