Truth Uncovered: Strengthening Nonprofit Oversight
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April 21, 2025
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A nonprofit organization faced public allegations of financial mismanagement by its CEO and COO, leading to concerns over its spending practices. Amid heightened public scrutiny, the Board engaged FTI Consulting and legal counsel to conduct an independent investigation into its financial reporting and internal controls.
FTI Consulting deployed a team to assess the organization’s financial practices, conduct interviews at all levels and provide a comprehensive analysis of spending and accounting practices against industry standards. The findings led to key governance improvements and strengthened financial oversight, ensuring the organization could continue its mission with renewed accountability.
Our Impact
- FTI Consulting’s independent assessment revealed inaccuracies in the media claims targeting the company, specifically the allegations of executive spending abuse on non-core functions.
- By benchmarking program spending against industry standards and evaluating key expenditures, our experts provided the client with critical insights to inform strategic improvements and helped the organization enhance accountability, put forward new leadership, improve transparency and reinforce its commitment to its mission.
- While donations to the nonprofit dropped during the investigation, FTI Consulting’s findings helped restore trust in the institution and donations have since rebounded.
Our Role
- FTI Consulting performed a comprehensive financial assessment into the institution and conducted interviews with former and current employees at all levels, from senior management to the Board of Directors.
- Our data and analytics professionals summarized a large number of records from the organization’s accounting, travel and expense systems to identify patterns over time and visualize trends related to the specific allegations.
- Our experts analyzed the organization’s program spending compared to that of similar nonprofits and evaluated expenditures related to travel, conferences and events.
- The team identified areas where policies, procedures and financial controls had not kept pace with the organization’s rapid growth.
Published
April 21, 2025
Key Contacts
Senior Managing Director
Senior Managing Director
Managing Director