Dealing with charity fraud


The Charity Commission’s reporting on its compliance and investigations work, indicate that the largest proportion of the reports of serious incidents by charities related to fraud and theft. Reports show that 44% of all serious incidents related to fraud or theft and this leads on from a number of worrying results of 2015 National Crime Survey, where the number of instance of fraud reported has risen 315% since 2010.

In order to fight fraud, you need to understand that you could be vulnerable; that it could cost you and that amounts and sources of fraud vary. Before cooperating with any charity or submitting your money/resources to it, it is important to:

  • Set the right tone: in which honesty and integrity are seen to be paramount.
  • Employment: recruitment policies should include reference checks and background screening.
  • Increase the perception of detection: put in place sensible supervisory controls including segregation of duties.
  • Maintain written procedures for validating and checking the authenticity of changes to supplier details.
  • Regularly review the financial performance of your charity and follow up unexpected variations.

At Neumette, we take the threat of fraud to our clients very seriously and have recently launched our Fraud Prevention and Detection Service to help our clients who have never dealt with charity fraud before become aware of the issues and show them what rules usually apply to a “genuine charity organization”, which handles its clients, staff, and volunteers appropriately.

If you would like to find out more about charity fraud prevention, please contact us using the form on our website.

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Feb 16, 7:42 PM

It was an interesting article to read! I have never encountered cases of charity fraud, but in the future I will consider following the pprinciples you described here.

Feb 20, 7:42 PM

I agree with you, this article is really interesting as it describes what can happen if you trust everyone. Unfortunately, even charities must be checked.

Feb 22, 7:42 PM

Very useful post! Thanks for sharing! Now that I’m aware of charities’ fraud, I’ll think twice before sending my information and especially money to some unknown charity organizations.

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