The new guide to preventing charity fraud
Fifteen organisations are behind the publication, including the Charity Commission, Acevo, HMRC and the National Fraud Authority
The Charity Finance Group has launched new anti-fraud guidance for charities.
Charity Fraud: A guide for the trustees and managers of charities has been published by the CFG with 14 other organisations, including the Charity Commission, Acevo, the National Fraud Authority and HM Revenue & Customs.
It says that staff should be properly trained and their qualifications properly vetted, that they should be encouraged to report fraud, that appropriate policies and controls should be put in place and that charities should properly understand the risks they face.
The document says charities must be particularly aware of identity theft and ensure that no one who has gained access to trustees’ details can withdraw money. They should also ensure that donor data is properly protected and that no one is engaged in fraudulent fundraising using the charity’s identity.
It says charities that are victims of fraud should report it immediately to Action Fraud, the UK’s national fraud reporting centre, and possibly to the police, the Charity Commission and HMRC.
It suggests that affected organisations think about a communications strategy to handle the impact of fraud.
"Taking a few simple steps can significantly reduce your chances of falling victim," the guide says. "Additionally, having a clear plan of what to do if there is a suspected or actual fraud will ensure you are better equipped to deal with the incident and minimise any negative impact."
