Charity Commission calls for better protection against fraud
Date: Tuesday 10th April, 2012
Author: Wendy Bambrick
Profile: Wendy Bambrick
The Charity Commission has called for charities to better protect themselves against fraud and other financial crime.
This is in response to a report published by the National Fraud Authority, which estimates that charities lose on average 1.7% of their annual income to fraud. This would mean a loss of £1.1 billion for the sector in the last financial year.
The types of fraud believed to be most common are payment fraud, fraud by employees or volunteers and cyber fraud. These affect all parts of the economy, and charities are not immune.
To help charities deal with this threat, the Charity Commission has published a new strategy, which aims to make charities more aware of the risks they face and to provide them with guidance as to how these risks can be managed.
When fraud occurs, the Charity Commission has responsibility for determining how the fraud came about, and how the trustees have responded. If a charity’s funds appear to be threatened, the Charity Commission will intervene directly to ensure their security.
Sam Younger, Charity Commission Chief Executive, highlighted the importance of strong financial controls and good governance in reassuring the public that their donations are safe, and that they will reach the causes for which they were intended.
As part of a joint project with the Charity Commission, the Fraud Advisory Panel is soon to publish ‘Giving Safely: A guide to making sure your charitable donations really count’. This will give practical advice for making donations on the doorstep, in the street and online. Ros Wright, chairman of the panel, said, “The most important message of all is: Don’t stop giving.”
Please note that the opinions expressed in this blog represent the views of the author and not the views of Mercer & Hole.