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Case Studies

Charities urged to sign Stop Fraud Pledge

The regulator is urging all trustees to sign up to a new Stop Fraud Pledge, which was launched to mark Charity Fraud Awareness Week. The Pledge commits charities to taking six practical actions to reduce the chances of failing victim to fraud.

The pledge includes: appointing a suitable person to champion counter-fraud work in the organisation, ensuring that trustees are aware of their legal duties; consulting with staff, volunteers and trustees; creating a written counter-fraud policy; performing checks and due diligence, and assessing each year how well fraud controls are working, what new risks there may be and what improvements are needed.

Online events are running all week, covering particular frauds, such as by insiders, or through grants; and ransomware attack.

Helen Stephenson CBE, Chief Executive of the Charity Commission, said: “Charity is special – it delivers good to so many people’s lives and helps strengthen our society. When the public donate generously to charities it is because they want to make a real and positive difference to a cause they often care deeply about, and they want to know their money will reach the ‘front line’.

“Sadly, as these figures we have released today show, there remain criminal individuals who would take advantage of organisations that seek to do good and of those that generously donate. That is why I am calling on all charities to take the risk of fraud seriously by signing up to our new Stop Fraud Pledge and taking six simple steps to protect their charity. Combating fraud gives the public confidence that their money is safe, protects vital funds for charities and more widely helps maintains trust in the charities we all care so passionately about.”

And David Clarke, Chair of the Fraud Advisory Panel, which organises each Awareness Week (and which itself is a charity) said: “With fraud and cybercrime at record levels it has never been more important for charities to be aware of the risks and how they might be affected. As we emerge from the pandemic, charities need to recover and flourish without fear of fraud. Taking relatively simple measures can go a long way to protecting your charity and keeping it safe from harm.

“It is concerning that a small minority of charities still do not financially invest in fraud prevention activities. This shows that there is still more to be done. We encourage charities to sign up to the pledge to help protect themselves and minimise the risks.”

Charities can find free tools and advice on a new website: preventcharityfraud.org.uk.

For the Pledge, visit https://preventcharityfraud.org.uk/fraud-pledge/.


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