Charities are believed to lose £2.3 billion to fraud every year, according to the newly released Annual Fraud Indicator 2017.
However, trustees can take simple steps to protect their charities against fraud.
The Charity Commission has issued new guidance which explains what to do. It also outlines the most common types of fraud experienced by charities - insider fraud, financial fraud and cyber-fraud – and how to report fraud if it does happen.
The Commission recommends that all trustees should ask themselves 10 questions to strengthen their charity’s position:
Mindy Jhittay, a Senior Associate in BWB’s team, said “Fraud is a perennial problem, and fraudsters use ever inventive ways to target charities. The good news is that trustees can take simple steps to protect their charities from the harm caused by fraud which, aside from the financial cost, can also cause reputational damage and upset staff and volunteers. There is lots of guidance for charities, from advisors and from within the sector, and we’ve listed some of the most helpful on our website.”
If you would like more information about how to protect your charity from fraud or to discuss a specific matter, please email us at firstname.lastname@example.org or call 020 7551 7777 and ask to speak to Rob Oakley or Mindy Jhittay.
Posted on 14/11/2017 in Legal UpdatesBack to Knowledge