Corruption attracts scholar attention due to its harsh impact on people and institutions, especially in nonprofit organizations traditionally associated with altruistic intents. Although many scandals have shaken the third sector, rare are the studies that offer a true understanding of how corruption occurs. Our research provides insights into the corruption phenomenon in the context of the Syrian refugee crisis in Lebanon. The findings show the powerlessness of public institutions, the chaotic working environments of humanitarian organizations, managerial malpractices, and inefficiencies in projects, all leading to unethical choices and to corrupt behaviors perpetrated by humanitarian agencies. The theoretical model that we propose brings new understanding of the relationships between nonprofit management, coordination, and corruption in the aid sector. On the practical front, it offers suggestions to public policy makers and practitioners about preventing corruption even during crisis situations.