An Accountant explains what’s really going on


This story about nonprofit fraud was originally published by The Conversation.

Nonprofit fraud is in the news a lot these days.

Federal investigators in Minnesota prosecuted one of the largest alleged COVID-19 pandemic fraud schemes, in which several nonprofits and individuals are accused of stealing about US$250 million from a federally funded child nutrition program. 

The defendants were found guilty in 2025, three years after the investigation began, of diverting funds by faking meal counts and submitting false reimbursement claims, then spending the money they got on luxury homes and cars. Other federal investigations of alleged fraud at nonprofits serving children in Minnesota are underway.

In April 2026, the Department of Justice under the Trump administration indicted the Southern Poverty Law Center, a civil rights nonprofit, on fraud charges that the center denies. That indictment has raised concerns about increased federal involvement in policing nonprofits – especially those that take actions the government may find objectionable.

Beware of false claims

The Department of Justice says it reached more than $6.8 billion in settlements and judgments in 2025 tied to the False Claims Act, the highest on record.

The False Claims Act, enacted in 1863, allows the government to pursue individuals or organizations who intentionally submit a “false claim” – baseless requests for taxpayer funds through a government grant or as reimbursement for services provided through a contract.

The Internal Revenue Service defines nonprofit fraud as the misuse of an organization’s assets, including embezzlement and theft.

“Public money and tax-exempt status demand public accountability,” Treasury Secretary Scott Bessent has said in defense of the Trump administration’s nonprofit crackdown. The goal, he added, was to end “the days of hiding fraud, abuse and extremist activity behind complicated nonprofit arrangements.” 

As an accounting professor who studies nonprofit fraud, I see the SPLC indictment and similar actions as a broader shift toward more aggressive government oversight of nonprofits and the policing of charitable activities.

More training needed

Despite Bessent’s suggestion, there is no clear data about how common nonprofit fraud is or how prevalent it is compared to corporate fraud or acts of fraud by people employed by government agencies.

The Association of Certified Fraud Examiners estimates that companies and nonprofits lose approximately 5% of their annualrevenue to fraud, according to a 2024 report.

The report found a typical loss from a reported nonprofit fraud incident is around $76,000. That’s just over half the average cost of $145,000 for all fraud cases, which also include incidents affecting private companies and government agencies.

The Association of Certified Fraud Examiners also has found that nonprofits are less likely to be trained than their peers in other sectors to identify evidence of fraud risks. That can make their staff and leaders less prepared to spot and deal with fraud compared to private businesses and government agencies.

Only 52% of nonprofit staff members report receiving any training on fraud awareness and risk, versus 83% for the employees of publicly traded companies.

Internal vs. external fraud

Once charities, which must have a purpose the government accepts, such as education, religion, science or helping those in need, are established, they ask the IRS to grant them tax-exempt status. 

All U.S. charities, except for churches, must then file mandatory annual 990 forms with the IRS to maintain their tax-exempt status. One of their responsibilities when they complete those forms is to report what the IRS calls any “significant diversion of assets” detected since filing the previous form. 

Diversion of assets means that money has been taken from a nonprofit, decreasing the funds available for it to fulfill its mission.

The FBI has a more expansive definition of nonprofit fraud, which also includes the external kind. And it prosecutes people accused of committing them.

The most common kind of external nonprofit fraud is when people create or run fake charities – groups that solicit donations but in reality are either complete scams that spend little or no time and money on real charitable activities.

For example, a charity called “Providing Hope VA” raised over $9 million in 2023 to provide services to homeless veterans. Instead, the funds became a personal bank account for its president and sole board member, James Arehart. He was sentenced to 21 months in prison and ordered to repay the bilked funds in 2025.

Providing Hope VA shut down following Arehart’s fraud conviction.

The Donald J. Trump Foundation was another charity shuttered in the aftermath of fraud investigations. It ceased operations in 2019 after New York state authorities found that it had made illegal use of charitable contributions for political purposes.

State of nonprofit fraud policing

Nonprofits are typically created when their founders file paperwork with state authorities.

As a result, the responsibility for policing nonprofits generally falls to state attorneys general, rather than federal authorities. But state governments have historically devoted little staff time or money to policing nonprofits, limiting their oversight of the charitable sector.

Only about 355 people worked to monitor charities in 48 out of 56 U.S. states and territories, according to the most recent comprehensive survey of state regulators from the Urban Institute and Columbia Law School, published in 2016. Most state offices employed fewer than 10 full-time workers. 

About 1 in 3 states didn’t even employ one staffer whose full-time job was to ensure that nonprofit funds were properly managed and that people in their states who ran nonprofits were upholding their financial and ethical duties, according to the survey.

Some states are more engaged in watching out for and punishing nonprofit fraud. The New York attorney general’s office, for example, publishes an annual report analyzing hundreds of nonprofit fundraising campaigns. Called Pennies for Charity, it analyzes professional fundraising to calculate how much charities actually receive in funds after they pay fees to the hired professionals. 

Federal government’s role

The federal government plays a role, too.

The IRS oversees nonprofits, to a degree, through its requirement that charities file 990 forms. And in some cases, it audits nonprofits.

The IRS audited around 660 nonprofits that filed 990 forms in 2024 out of the nation’s estimated 1.9 million tax-exempt organizations. The IRS can also impose penalties or revoke a charity’s tax-exempt status for serious violations, such as failure to file a 990 form for three consecutive years, engaging in overtly political lobbying, or failing to use funds to support a public benefit. 

When the authorities encounter a large-scale case of suspected federal fraud, or a case that may have harmed people in several states, the federal government may step in. The Justice Department may investigate and prosecute in those instances. Federal investigations of suspected nonprofit fraud have been historically rare, making the SPLC indictment an unusual exception.

In this case, the FBI and IRS led an investigation into the charity and referred the case to the Justice Department for prosecution. Separately, the Alabama attorney general later opened a civil investigation into the SPLC for potentially violating state charity laws.

Donor precautions can be counterproductive

Several organizations rate nonprofits to help donors give wisely, including Charity WatchCandid and Charity Navigator.

Many of these groups consider the percentage of their funds that charities spend on overhead costs to be a way to assess a charity’s quality. Overhead includes fundraising, accounting, advertising, media outreach and other expenses that are required to ensure that a charity can get its work done and increase what donors call its “impact.” The salary and benefits of some employees may count as well, depending on their roles.

This pressure to keep overhead spending low can lead U.S. charities to not make fraud prevention and detection a high priority.

Nonprofits may also hesitate to report suspected fraud or theft because they worry that it could hurt their reputation among donors and by extension future funding.

A research team found that donations declined after charities reported cases of nonprofit fraud, and fell even more when the news media covered those incidents. The study, published in 2023, also found that donors were less likely to cut funding when fraud-afflicted nonprofits demonstrated transparency, recovered stolen funds and took steps to prevent future misconduct.

Likewise, the Association of Certified Fraud Examiners stresses the importance of disclosure and corrective action after fraud occurs in any context.

The association also recommends that companies and nonprofits establish procedures to analyze their spending and set up whistleblower hotlines. Nonprofits would likely benefit from increased monitoring for fraud, but must weigh the benefit against spending funds to support their charitable mission.



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Recent Reviews


There are places in the world where everything feels accounted for. The roads are smooth, the signs are clear, and the experience has been carefully arranged long before you arrive. Adventure exists, technically, but only within boundaries that make it predictable. Nothing unexpected happens. Nothing pushes back.

And then there are places that still feel wild.

Not reckless. Not uncomfortable. Just untamed enough that you feel like a guest rather than a consumer. Places where the land doesn’t bend to human schedules, where weather sets the tone for the day, and where nature isn’t something you observe from a distance — it’s something you move through, adapt to, and occasionally surrender to. Traveling somewhere that still feels wild changes you in quiet, persistent ways. It slows your thinking. Sharpens your senses. Reminds you how small you are — and how good that can feel.

Alaska is the clearest example we know. But the feeling itself, the pull toward the wild, extends far beyond one place on the map.

The Absence of Predictability Is the Point

Baby bear Pavlovs Bay Alaska
Photo Credit: Jenn Coleman.

When you travel somewhere wild, certainty disappears almost immediately. Plans turn into loose outlines. Timelines soften. The assumption that you’re fully in control starts to fade — and that’s exactly where the experience opens up.

In Alaska, weather doesn’t politely cooperate. Flights wait. Boats adjust for tides. Trails change overnight. Wildlife appears on its own terms, not when you’re ready with a camera in hand. At first, this unsettles people. We’re trained to optimize travel, to squeeze value from every hour, to move efficiently from one highlight to the next.

Wild places resist that mindset. They force you to slow down and pay attention instead.

Instead of rushing, you find yourself watching clouds crawl across a mountain range or listening for the distant crack of shifting ice. You wait because someone has spotted a bear across the river, and suddenly waiting doesn’t feel like lost time — it feels like the entire point. In wild places, patience isn’t a virtue. It’s a requirement.

Nature Isn’t a Backdrop — It’s the Main Character

Endless Adventures Await-Moose - Alaska Glacier Lodge Palmer Alaska
Photo Credit: Jenn Coleman.

In many destinations, nature plays a supporting role. It’s something you admire between meals and museum visits, a scenic pause before moving on to the next activity.

In wild places, nature is the storyline.

In Alaska, the scale alone recalibrates your perspective. Mountains don’t rise politely in the distance; they loom. Glaciers don’t shimmer passively; they groan, fracture, and move. Rivers aren’t decorative — they’re powerful, cold, and very much alive. Wildlife isn’t something you visit. It’s something you encounter, often unexpectedly, and always on its own terms.

That reality changes how you move through the world. You speak more quietly. You scan the horizon. You learn to read the land not just for beauty, but for meaning — wind direction, cloud movement, water levels. You stop expecting nature to perform for you and start allowing it to lead.

Comfort Looks Different in the Wild

View from my room Homer Inn and Spa
Photo Credit: Jenn Coleman.

Traveling somewhere wild doesn’t mean giving up comfort, but it does redefine what comfort actually means. Luxury here isn’t about excess or polish. It’s about warmth after cold. Shelter after exposure. A solid meal after a long day outside.

Some of our most memorable places to stay in Alaska weren’t remarkable because of opulence, but because of where they were. Remote enough that silence felt complete. Close enough to the land that stepping outside meant being fully immersed — weather, wildlife, and all. Comfort in wild places is practical and intentional, and because of that, it feels deeply satisfying.

You notice and appreciate the basics more. Dry socks. Hot coffee. A sturdy roof during a storm. These aren’t assumed; they’re earned. And because you’re more present, they land differently. They feel grounding in a way that polished luxury sometimes doesn’t.

Your Senses Wake Up

Matanuska Glacier, Alaska
Photo Credit: Deposit Photos.

One of the quieter gifts of wild travel is how it reactivates your senses. In daily life, we filter relentlessly just to get through the day — noise, movement, light, information. Wild places strip that filter away.

You smell rain before it arrives. You hear ice shifting miles off. You notice how light changes minute by minute. In Alaska, even the air feels sharper, cleaner, alive. You become aware of your body in space — where you step, how fast you move, what’s happening around you.

This heightened awareness isn’t stressful. It’s calming. It pulls you into the present without effort or instruction. It’s mindfulness without the app, presence without performance.

You Remember What Adventure Actually Means

Hatcher Pass - Gold Cord Lake Trail Alaska
Photo Credit: Jenn Coleman.

Somewhere along the way, adventure became a marketing word. But real adventure, especially in wild places, isn’t about adrenaline or bragging rights. It’s about curiosity, humility, and uncertainty.

Adventure means not knowing exactly how the day will unfold. It means trusting guides and locals. It means adapting instead of controlling. In Alaska, that might look like hiking through mist, unsure if the clouds will lift. Kayaking through ice-dotted water where seals surface nearby. Boarding a small plane knowing weather could change everything.

And when things don’t go according to plan, that doesn’t diminish the experience — it becomes the story. Wild places remind you that the goal isn’t perfection. It’s participation.

Time Feels Different Out Here

Yllas Ski Resort Finland
Photo Credit: Jenn Coleman.

Wild destinations stretch time in ways that are hard to explain until you experience them. Days feel full without feeling rushed. Hours pass unnoticed when you’re fully engaged. Evenings arrive gently, not abruptly.

Without constant stimulation or packed schedules, your nervous system settles. You sleep more deeply. Wake earlier. Feel less urgency to check your phone. In Alaska, the light itself reshapes time, lingering late into the evening in summer, quietly reminding you that clocks are human inventions, not natural laws.

That shift doesn’t disappear when you leave. You return home more aware of how often urgency is manufactured — and more protective of your time because of it.

You Feel Like You’ve Earned the Experience

Kayaking Glacier Bay Alaska
Photo Credit: Jenn Coleman.

There’s a quiet satisfaction that comes from traveling somewhere that isn’t effortless. Wild places often require extra steps — small planes, ferries, long drives, patience. But effort creates investment.

When you arrive, you don’t feel like you stumbled into the experience. You chose it. And that choice creates respect — for the land, for the people who live there, and for the experience itself. In Alaska, simply reaching some destinations comes with stories before the stay even begins.

Wild travel doesn’t hand itself to you. It asks something in return.

Why We’re Drawn to the Wild Now More Than Ever

Waterfall Cove Alaska
Photo Credit: Jenn Coleman.

The pull toward wild places isn’t accidental. After years of constant connectivity, crowded destinations, and carefully curated experiences, many travelers are craving something real. Something grounding. Something that doesn’t ask them to perform.

Wild places offer perspective. They remind us that the world is bigger than our inboxes, that discomfort isn’t dangerous, and that awe still exists — no explanation required. Alaska sits at the heart of this longing, but it isn’t alone. You feel it in remote coastlines, high deserts, northern forests, and far-flung mountain towns around the world.

What unites them isn’t geography. It’s restraint. These places haven’t been overly softened or simplified. They still ask you to meet them where they are.

What You Take Home From a Wild Place

Hikers hiking, enjoying the view of Famous Patagonia Mount Fitz
Photo Credit: Deposit Photos.

You don’t return with just photos. You come back quieter, more observant, and more comfortable with uncertainty. You gain a clearer sense of what you actually need — and what you don’t.

Traveling somewhere that still feels wild recalibrates your sense of scale and self. It reminds you that not everything needs improvement, explanation, or monetization. Some things are powerful simply because they exist.

And once you’ve felt that — once you’ve stood somewhere that didn’t care whether you were there or not — it changes how you travel going forward. You start seeking places that ask something of you. Places that feel alive. Places that leave room for surprise.

Because wildness, in the end, isn’t something you conquer.

It’s something you experience — and carry with you long after you’ve left.

Hi! We are Jenn and Ed Coleman aka Coleman Concierge. In a nutshell, we are a Huntsville-based Gen X couple sharing our stories of amazing adventures through activity-driven transformational and experiential travel.



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