By Phil O'Toole
Managing Partner
Misconduct is often perceived as a single event that suddenly erupts. Although cases like these do occur, misconduct typically appears as a series of more subtle signs that are missed. They can be small oversights, minor assumptions that go unchecked, or grey areas that remain unchallenged. Within not-for-profits, where reputation and regulatory compliance are paramount, recognising these early warning signs isn't only good governance, it's essential to an organisation's longevity.
The hidden cost of waiting too long
Many NFPs operate in reactive mode, only addressing misconduct once it's escalated or formal complaints have been lodged. By then, the damage may already be done. Relationships become strained, reputations suffer, and funding can be placed at serious risk. In healthcare NFPs, where vulnerable populations depend on your services, the stakes are even higher.
The reality is that early-stage misconduct often hides in plain sight. It might look like persistent favouritism in staff assignments, vague or incomplete financial records, key workers managing multiple high-risk activities without proper oversight, or blurred boundaries between personal and professional relationships. Without a clear understanding of what these red flags look like, organisations miss critical opportunities to intervene before small issues become major crises.
What early-stage misconduct looks like in practice
In a previous article, we wrote about the necessity for NFPs to create a proactive risk and conduct culture, a part of which highlighted the need to enable staff and volunteers at every level of the organisation to recognise these potential red flags early. To do this, it's essential that they're aware of what to look for. Although misconduct can materialise in many ways, some key examples are:
These situations often start innocently - a trusted employee handling multiple responsibilities, a Board member's genuine desire to help, or staff trying to provide the best possible care within resource constraints. But without proper oversight and clear boundaries, they can quickly evolve into serious misconduct.
Building confidence to identify the signs
The most effective NFPs don't just hope their staff will spot problems - they actively equip them to do so. This means creating a shared understanding across the organisation of what early-stage misconduct looks like and fostering an environment where people feel safe and confident to raise concerns before they escalate. Recommended actions include:
Create organisation-specific guidance such as developing a simple "red flags" guide tailored to your healthcare NFP's specific operations: Include examples relevant to your services - whether that's health and aged care, mental health support, disability services, or community health programs.
Use real scenarios: Host regular discussions during team meetings or Board briefings using realistic scenarios. Ask questions like: "What would you do if you noticed a colleague consistently working alone with vulnerable clients without following our buddy system?" or "How would you handle discovering that procurement decisions are consistently favouring the same supplier without proper documentation?"
Train leaders to listen well: Ensure your management team and Board members know how to receive early concerns with neutrality and professionalism. This includes documenting conversations appropriately, even when no formal action is taken immediately, and following up to show that concerns are valued and taken seriously.
The prevention advantage
Misconduct is easier to prevent than to fix. The NFPs that maintain their hard-earned community trust are those that build awareness and accountability across their entire organisation, from Board level to frontline volunteers.
Early warning signs are only valuable if someone knows how to spot them and feels empowered to act. When your team understands that raising concerns early is part of their professional responsibility - you create a protective culture that serves everyone better. This then shifts your NFP from passive observation to active stewardship of integrity. This means normalising conversations about conduct, providing people with the support and confidence to address concerns constructively, and demonstrating through action that early intervention is valued and supported.
When staff, volunteers, and Board members feel equipped to identify and address potential issues before they escalate, your organisation becomes more resilient, your community trust strengthens, and your mission remains protected. The organisations that thrive are those that see early intervention not as an inconvenience, but as an investment in their long-term sustainability and community impact.
How Centium can help
Centium's experienced, independent investigators understand that when early warning signs are missed, swift and professional intervention becomes critical. Our team specialises in conducting thorough, impartial workplace investigations for NFPs, managing sensitive matters with the discretion and objectivity that NFPs require.
When concerns do arise - whether from whistleblower reports, suspected misconduct, or escalated workplace issues - we provide the independent expertise needed to investigate thoroughly and fairly. Beyond our core investigative services, we also support organisations in developing stronger preventative measures, helping you recognise red flags before they require formal investigation. We also offer a range of e-learning and face-to-face training modules that support these initiatives.
We're here to help your NFP maintain integrity and community trust, whether that's through professional investigation services when issues arise, or guidance to strengthen your risk management and workplace culture before problems escalate. To learn more about our Workplace Investigation services, or to discuss your specific needs, please directly contact our Managing Partner, Phil O'Toole, via the email button on the top.
