Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  |  Fundraising

UK Reveals Analysis on Charity Fraud


3 November 2016 at 8:59 am
Lina Caneva
More than a third of charity fraud cases in the UK came from inside the organisations – perpetrated by trustees, staff or volunteers, according to the first published report of serious fraud by the UK Charity Commission.


Lina Caneva | 3 November 2016 at 8:59 am


0 Comments


 Print
UK Reveals Analysis on Charity Fraud
3 November 2016 at 8:59 am

More than a third of charity fraud cases in the UK came from inside the organisations –  perpetrated by trustees, staff or volunteers, according to the first published report of serious fraud by the UK Charity Commission.

The commission said it had published, for the first time, an overview of the serious incident reports (RSIs) it had received about fraud to identify wider learnings for the not-for-profit sector.

The analysis showed that during the 2015/16 financial year more than 2,200 serious incidents were reported to the commission by charities of which 178 were classified as fraud.

“The fraud-related RSIs we sampled affected a broad range of charities – from small, local organisations such as school parent teacher associations to large well-known charities with thousands of staff and multi-million pound budgets – and included both internal and external frauds,” the commission report said.

“Over a third of the frauds sampled were ‘internal’, meaning frauds originating within the charity – perpetrated by trustees, staff or volunteers. The highest single reported loss to fraud was over £1 million (A$1.61 million).”

The commission said the common identifiable trends in many of the fraud cases included weak governance and poor financial controls, often coupled with excessive trust placed in key individuals within the charity.

“Several cases related to fraud were carried out by charities’ overseas partners, where the legal and regulatory context can often be difficult to manage. This highlights the need for enhanced due diligence and oversight for those charities working with international partners.”

The report said that with the growth of technology, cyber-enabled fraud was becoming increasingly common.

“This can include ’mandate’ fraud, where charities are deceived into diverting legitimate payments to fraudsters’ bank accounts, or ‘chief executive’ fraud, where fraudsters, often using publicly available information, impersonate senior officers of the charity and trick charity staff into making payments to the fraudster’s’ bank account,” it said.

The report, Detecting Fraud Against Charities, can be downloaded here.

The UK Charity Commission has also launched a new website dedicated to helping charities combat fraud.


Lina Caneva  |  Editor  |  @ProBonoNews

Lina Caneva has been a journalist for more than 35 years. She was the editor of Pro Bono Australia News from when it was founded in 2000 until 2018.

PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers? Get in touch at news@probonoaustralia.com.au or download our contributor guidelines.

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

What have we learnt after 135 years of philanthropy?

Stacey Thomas

Wednesday, 22nd September 2021 at 5:08 pm

Peter Singer vows to donate million dollar philosophy prize

Luke Michael

Monday, 13th September 2021 at 5:08 pm

Philanthropy has a role to play in funding NFP journalism

Luke Michael

Monday, 13th September 2021 at 4:37 pm

It's Include a Charity Week

Katherine Raskob

Thursday, 9th September 2021 at 7:00 am

pba inverse logo
Subscribe Twitter Facebook
×