05 May 2015 12:00 AM

The threat of fraud looms over every business and charities are no exception.  In fact according to The Annual Fraud Indicator published by the UK National Fraud Authority in 2013, 9% of Not-for-Profit entities have been victims of fraud costing those entities an incredible £147million. The losses are not only financial, but your charity's reputation and donor trust and confidence may also suffer as a result.

There are several things you may want to do to make sure your charity doesn’t find itself a victim of fraud, these include:

-Provide anti-fraud training to all employees and volunteers
-Put an effective fraud reporting mechanism in place
-Increase your employees’ and volunteers’ awareness of detection by publicising the measures you’ll be putting in place
-Ensure the management of your charity is recognised as embodying honesty and integrity
-Perform regular fraud risk assessments to identify and mitigate your charity’s exposure to internal and external fraud
-Ensure strong anti-fraud controls are in place and operating effectively
-Ensure your finance team has adequate resources and authority to operate effectively and without undue influence from senior management or your trustees
-Ensure your recruitment policy is sufficiently robust
-Put support/assistance programs in place to assist employees struggling with addictions, mental/emotional health, family or financial problems
-Adopt an open-door policy that allows your employees to speak freely about pressures so you can alleviate those pressures before they become acute
-Conduct anonymous surveys to assess employee morale


We work with Charities and Not for Profit organisations helping them to identify areas of vulnerability, to implement a plan of action to plug any gaps and if needed to investigate where there may be a suspicion of fraudulent activity.

If you have any questions regarding your organisation's risk to fraud, or suspect that you may have an issue please email me at stephen.meredith@alliotts.com or call me on +44(0)1483 533119 or +44(0)20 7240 9971 to discuss your situation in complete confidence.