Vibrant Communities, Informed Donors, Strong Nonprofits
Kris Kewitsch | Executive Director, Charities Review Council | October 2026
Nonprofits are woven into the fabric of our communities, and Charities Review Council has been a thread in that fabric for 80 years. Across Minnesota, nonprofits are often part of our everyday lives.
Recently, the Minnesota Council of Nonprofits (MCN) has responded to many people’s concerns about these familiar organizations as they’ve asked: What’s with all the fraud?
In the news, it sounds like fraud is rampant in Minnesota nonprofits. Politicians have gained or lost momentum over it, and it has fundamentally changed how many people look at charitable giving.
MCN wanted to dig a little deeper and figure out just how abundant fraud is among Minnesota nonprofits.
Three main findings emerged:
- There have been zero public reports of fraud in state grant programs
- Fraudulent activity has mainly taken place under for-profit entities
- The “nonprofits” in recent fraud cases were not in legal compliance and were immediately dissolved or had their tax-exempt status revoked
Importantly, MCN found that among the instances of fraud recently studied by the Association of Certified Fraud Examiners, “10% was conducted through entities formed as nonprofits, as opposed to 42% at private companies, 26% at public companies, and 17% in government.”
At the end of the day, what’s important to note is that a few loud cases of nonprofit fraud do not speak for the entire sector. In fact, many nonprofits (particularly those who have earned their Meets Standards® seal) have stricter governance and transparency rules than the state does for nonprofits. Indeed, fraud is not unique to Minnesota nonprofits, or nonprofits in general, and we can’t legislate morality.
Being a smart giver does not mean ignoring the news, but it does mean taking stock of what we already know: that nonprofits are already held to a higher standard than for-profits, and that you always have the option to get in touch, ask questions, and direct your donations accordingly.
Charities Review Council is here as we’ve always been: to equip nonprofits to build high-quality, transparent relationships with donors, and to equip donors with the tools and confidence to give meaningfully.
Our communities benefit from variety. Everyday people lend expertise as board members, service users, and good neighbors. Professionals take unique skills in accounting, law, and marketing to bring each nonprofit’s message to life. Community leaders involve schools, churches, and political groups into meaningful service. And generous donors use their wealth to impact programs that they care about. All together, we create a healthy and vibrant nonprofit environment.
Fraud isn’t the real story: it’s the people, the hard work, and the due diligence that makes our communities strong, vibrant, and healthy.
