Over the coming weeks we’ll be posting up a series of pertinent articles tackling some of the key issues currently affecting the Third Sector. You’ll find the latest of these invaluable features below. To view previous articles simply click on whichever one appeals to you from the list on the right.
October 2009
Depressing as that statistic is, it nonetheless highlights an area where charities really need to be more vigilant. The same survey showed that 60% of the charities surveyed had no anti-fraud measures in place. In the case of the smaller charities, that figure jumped to 75%.
As well as the financial consequences of fraud, a quarter of victims reported negative impacts such as a damaged reputation, not being able to fund projects, bad media coverage leading to decreased public confidence, and, in some cases, redundancies had to be made. There’s also a heavy emotional toll with many co-workers feeling upset and betrayed. In the worst cases, organisations were taken to the brink of closure.
Although charities are sometimes able to recover some or all of the money, it’s clearly far better to avoid the devastating spectre of fraud in the first place. To this end, the Fraud Advisory Panel has set out a four-point action plan in response to its survey findings. It involves running regular risk assessments, the development of an anti-fraud policy, testing the effectiveness of any existing systems, and drawing up a plan for responding to fraud.
Taking all these steps is essential but, as ever, they can be time consuming and highly technical. Many charities either don’t have, or can’t spare, the resources required. That’s where Charita can come to the rescue. Our Third Sector legal and accountancy expertise, together with our cost-effective way of operating, means we’re ideally qualified to carry out the necessary assessments and set up the sort of robust safeguarding measures you’ll need. To find out more, email one of our team at info@charita.co.uk for an informal chat.