Nonprofit Embezzlement Concerns Grow in North Bay

Weak controls, high trust culture, and limited oversight make nonprofits vulnerable to financial fraud and insider theft.

Mar. 24, 2026 at 5:29am

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Nonprofit organizations in the North Bay region have faced a growing number of high-profile embezzlement cases in recent years, with millions of dollars allegedly stolen by trusted employees. Experts say nonprofits are particularly vulnerable to fraud due to a lack of robust financial oversight, a culture of trust, and a focus on mission over administrative infrastructure. While the majority of nonprofits operate with integrity, the sector faces ongoing challenges in preventing and addressing occupational fraud.

Why it matters

Nonprofit embezzlement cases can have devastating impacts, draining critical funds from organizations that serve vulnerable communities. These incidents also undermine public trust in the nonprofit sector and highlight the need for stronger financial controls and oversight to protect against fraud.

The details

According to a 2024 report by the Association of Certified Fraud Examiners (ACFE), 10% of all occupational fraud cases nationally occurred at nonprofits, with a median loss of $76,000. More than half of these thefts were attributed to a lack of internal controls or the circumvention of existing controls. Nonprofits may be more susceptible due to a more relaxed financial environment, with irregularities in the books going unnoticed over time. The ACFE also found that 84% of fraudsters exhibited at least one behavioral red flag, such as being possessive of financial information.

  • In 2023, a longtime employee of the now-defunct Social Advocates for Youth (SAY) was sentenced to three years' probation and four months in jail for defrauding the nonprofit of $53,000 over nearly five years.
  • In 2018, the former executive director of the Finnish American Home Association in Sonoma was found guilty of grand theft for stealing more than $100,000 from the organization.
  • In October 2026, Samantha Piehoff was arrested and charged with suspicion of forgery, grand theft, and obtaining money under false pretenses for allegedly embezzling $375,000 from the Sonoma County Farm Bureau and its Foundation.

The players

Daryl Reese

Founding attorney with the Daryl Reese Law Group in Santa Rosa, which specializes in representing nonprofit organizations.

Linda Jacobs

CEO of the North Bay-based Center for Volunteer & Nonprofit Leadership (CVNL), an organization that supports and strengthens nonprofits across the region.

Katelyn Willoughby

Marketing and communications director at CVNL, who notes that digital security has become a growing focus for the organization and the nonprofits it supports.

Samantha Piehoff

A member of a trusted family who had guided the Sonoma County Farm Bureau and its Foundation for decades, and was allegedly charged with embezzling $375,000 from the organizations.

Lisa Fatu

A former director of youth crisis services at the now-defunct Social Advocates for Youth (SAY) nonprofit, who was sentenced to three years' probation and four months in jail for defrauding the organization of $53,000 over nearly five years.

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What they’re saying

“All nonprofits should have internal controls to ensure the financial security of the organization. With a lack of internal controls, an employee in a nonprofit may end up in a situation where they justify stealing, say, $100. Even though that's just plain wrong, they may be tempted to get away with a small theft if they've figured out the organization is an easy target.”

— Daryl Reese, Founding attorney

“Nonprofits are among the most regulated types of organizations in the U.S., subject to Internal Revenue Service oversight, annual financial reporting, public disclosure requirements and state-level review. The vast majority operate with high integrity and transparency.”

— Linda Jacobs, CEO

“Strengthening cybersecurity is no longer just an IT issue––it's a communications, operational and organizational-resilience issue for the entire [nonprofit] sector.”

— Katelyn Willoughby, Marketing and communications director

What’s next

The judge in the Samantha Piehoff case will decide on Tuesday whether or not to allow her out on bail.

The takeaway

This trend of nonprofit embezzlement in the North Bay highlights the need for stronger financial controls, board oversight, and cybersecurity measures across the sector to protect against fraud and restore public trust in the important work of local charitable organizations.