Our top 5 areas identified across charities as being weaknesses to fraud

1: Many charities do not have in place a policy that deals with Fraud, Bribery and Corruption. Failure to have such policies in place leaves the charity at risk of fraud being committed and going undetected because there is no structured reporting process, or methodology in place to manage allegations.

2: Many charities do not have anti-bribery measures or policies in place to manage allegations of bribery. Failure to have adequate measures in place to prevent bribery leaves charities vulnerable to potential acts of bribery going undetected as well as the risk of reputational damage could put the charity at risk of prosecution under the Bribery Act for failing to prevent bribery.

3: Many charities do not have procedures in place to raise awareness of how to report concerns regarding fraud, bribery and corruption. Failure to inform staff, contractors and users of the charity how to report concerns leaves the charity vulnerable to fraud being committed against it and going undetected.

4: Charities should ensure that they meet the minimum expectations placed on charities by the Charity commission and should specifically benchmark itself against these requirements. These are set out in the document “The Charity Commission strategy for dealing with fraud, financial crime and financial abuse of the charity sector

5: Tiaa have found that it is rare for charities to ensure that they have a standing agenda item covering Fraud, Bribery or Corruption on board or committee agendas. Failure to discuss the issues or concerns at a senior level may lead to staff not reporting concerns or fraud going undetected. Discussing fraud at Board level also demonstrates that the organisation takes the issue of fraud seriously and is committed to tackling it.

Charity Fraud Awareness Week is the 27th November – 1st December 2023, please visit our dedicated page for more advice and information.

Charity Fraud Awareness Week