Keeping Your Charity on the Right Track: Mitigating Fraud Risks

Welcome to the 9th month of our Keeping Your Charity on the Right Track 12-month governance plan. Last month we took a look at internal controls, but how do they stand up to fraud?

Month 9 – Establishing a robust anti-fraud environment

The Charity Commission has recently highlighted its concerns over the level of fraud and mismanagement in the charity sector. It is recommended that you periodically seek to challenge the received wisdom, and spend some time considering the “what if” scenarios that could affect your organisation. This article identifies actions you can do to mitigate fraud and includes real-life fraud examples in the charity sector to help you consider potential areas of risk.

Checklist for Month 9:

  • Ensure that your charity is alert to the risks of fraud, and you are responding accordingly, as the direct and indirect costs can be highly significant.
  • Be aware of new and emerging areas, for example at present cyber-risks are becoming ever greater.
  • Consider undertaking the good practices noted above.
  • Speak to your professional advisers regularly as they should be highly aware of current fraud risks in the sector and what could be done about them.
  • Monitor the guidance issued by the Charity Commission and Charity Sector Counter Fraud Group, so you understand the expectations of charity sector regulatory bodies.
Read month 9


If you missed them you can also read the previous 8 months below:

  1. Month 1: Is your Board effective?
  2. Month 2: Reporting to the Board
  3. Month 3: SORP compliance
  4. Month 4: Charity Reserves
  5. Month 5: Is Tax on Your Radar
  6. Month 6: Are you Making Effective Use of Resources?
  7. Month 7: Reporting
  8. Month 8: Internal Audit/Internal Controls

We worked with our Charity and Not for Profit colleagues across our national association MHA to produce this guide. If you have any concerns about fraud risks or queries about charity governance in general, please contact our Not for Profit team on 01903 234094.