When Something Smells Wrong in Your Organisation

The Warning Signs Nobody Wants to Talk About

Here’s an uncomfortable truth about meetings, committees, and voluntary organisations.

The person most likely to be stealing from you is probably the one everyone trusts the most.

Read that again. Because it’s the single most important thing I can tell you on this topic.

Dishonest people are clever. They know that the more they are liked and trusted, the less likely they are to be suspected. So they work hard — often for years — building goodwill, loyalty, and a shield of trust that makes them almost untouchable. And all the while, they’re helping themselves to what isn’t theirs.

What Does Inappropriate Behaviour Actually Look Like?

It’s not always someone with their hand in the till. Inappropriate behaviour in organisations takes many forms, including moving funds into accounts they control, creating false invoices, seeking reimbursements without receipts, arranging payments to family members or their own businesses, taking cash at fundraisers and not banking it, and manipulating rules or selection processes to benefit themselves or people close to them.

There’s also the subtler kind — not providing reports to the board, withholding information the organisation has a right to know, bullying, and failing to identify or escalate risk.

If any of this is landing with a familiar feeling, trust your instincts.

So Why Don’t Organisations Speak Up?

This is where it gets really interesting. And a little uncomfortable.

Most organisations don’t act because of one word: embarrassment. Nobody wants to admit they were taken for a ride by someone they trusted and championed. In retrospect, the signs are almost always there. But at the time? The offender’s carefully constructed reputation makes it nearly impossible to see.

Then there’s fear — fear of being seen as negligent, fear of reputational damage, fear of responsibility for not noticing sooner. And so the easiest path becomes sweeping it under the carpet and “putting it down to experience.”

Here’s why that’s a dangerous choice. Research in the UK found that around 85% of organisational fraud goes unreported. Which means the perpetrator simply moves on to their next target. I know of one treasurer who stole from five different organisations before anyone finally reported him. Five.

The leopard doesn’t change its spots.

The Dilemma Nobody Prepares You For

Sometimes, when a person is caught, they’ll offer a deal. Partial repayment of funds. Information about other wrongdoing. A confidentiality agreement that ties your hands legally in exchange for getting something back.

It’s a genuine dilemma. Pursue justice through the courts and potentially recover nothing. Or accept the offer — and effectively set them free to do it again somewhere else.

There’s no easy answer. But there is a clear starting point: get proper legal advice before you agree to anything.

And be aware — even a confidentiality agreement doesn’t necessarily prevent police from pursuing an offender, though it may restrict what your organisation can provide to them unless compelled by a court.

Before You Do Anything — A Final Caution

If you suspect something is wrong, document everything. Every irregularity, every suspicious transaction, every implausible explanation. Then lay it before a trusted colleague or legal adviser before you act.

The very last thing you want is to accuse someone who is innocent. Protect yourself and protect others — but don’t stay silent either.

The Bottom Line

Theft and fraud in organisations happen far more often than people realise. Most offenders get away with it precisely because good people feel too uncomfortable to act.

If something smells wrong, seek legal advice sooner rather than later. And remember — if you let it go, someone else will pay the price.

Please note: I am not a lawyer and this article is provided as general guidance only. Always seek appropriate legal advice for your specific situation.

David Julian Price is Australia’s leading meetings expert and governance specialist. Find out more at davidprice.com