The independent regulator of charities in England and Wales, the Charity Commission, has published new guidance on Fraud and financial crime as the third chapter of Protecting Charities from Harm, its online compliance toolkit for charities.
The Commission has developed the toolkit in partnership with the UK charity sector; it provides practical guidance on managing risks and protecting charities and charitable property from harm.
Fraud and financial crime affects all parts of the UK economy, including charities. A recent survey by the National Fraud Authority estimated that fraud in the charity sector accounts for 2.4% of total annual charity income, representing 3% of all fraud in the UK.
The new guidance from the Charity Commission offers a broad range of practical advice about how to deal with actual and suspected fraud, including anti-fraud measures that can be taken to prevent its recurrence. It also provides guidance for charity managers about how to devise and implement an effective fraud action and response plan.
The first two chapters of Protecting Charities from Harm covered charities and terrorism and due diligence and monitoring. Details of the final chapter which will cover holding, transfering, and receiving funds safely in an international context will be posted here shortly.