2 Feb 2018

The Charity Commission has updated its guidance on protecting charities from fraud.

The Charity Commission has updated its guidance on protecting charities from fraud.

Fraud is a serious risk to charities and can involve:

  • false representation, for example identity fraud
  • failing to disclose information
  • abuse of position to make a gain or cause loss to another

Estimates of the scale of charity fraud in recent years have varied between nearly £150 million and almost £2 billion per year.

The updated guidance includes an infographic with top tips on how to respond when things go wrong.

Fraud tips

 

Charity trustees have a duty to manage their charity's resources responsibly and ensure that funds are "protected, applied and accounted for".  It's therefore essential that trustees put in place appropriate counter-fraud measures to ensure that all money given to their charities is used for legitimate and lawful purposes.

The guidance reminds trustees that they can avoid basic mistakes and make sure their charity is well protected by:

 

  • ensuring strong financial management and good governance
  • putting in place financial controls and ensuring they're applied robustly
  • reading the Charity Commission guidance on internal financial controls for charities (CC8)

 

You can read the guidance in full on the Charity Commission's website.