Lessons into Practice: Charity Fraud Awareness Week 2024

In the ever-evolving landscape of charity operations, the threat of fraud remains a significant concern. The recently published Charity Fraud Report 2024 by BDO sheds light on alarming statistics and trends within the sector, providing essential insights for trustees and charity leaders.

The report reveals that 84% of charities have experienced financial losses due to fraud, a slight decrease from 92% in the previous year. However, half of these fraudulent activities were perpetrated by individuals within the organisations themselves, underscoring the urgent need for robust internal controls and vigilance.

Many charities are taking proactive steps, such as implementing policies on conflicts of interest and whistleblowing, to combat insider threats. Yet, concerningly, only 44% of organisations have a formal fraud response plan. This is particularly troubling in light of rising expectations for effective fraud risk management.

Beyond financial losses, the report highlights the non-financial impacts of fraud, including damage to reputation and trust. These intangible harms can erode public confidence and demoralise teams, threatening a charity's ability to fulfill its mission.

To tackle these challenges, the Fraud Advisory Panel spearheaded various initiatives during Charity Fraud Awareness Week 2024, equipping charities with tools to prevent and respond to fraud effectively.

As part of this critical campaign, we recently hosted an event at Waterman House in Belfast in collaboration with the Fraud Advisory Panel. The event brought together sector leaders and experts to deepen the conversation on fraud prevention.

We were privileged to welcome expert guest speakers:

• Matthew Field from the Fraud Advisory Panel, who shared insights into sector-wide trends and prevention strategies.
• Dr. Ruth McAlister and Martin Dubbey from Harod Associates, who discussed practical approaches to identifying and mitigating risks in charity operations.

The event fostered meaningful conversation, offering actionable takeaways for organisations striving to enhance their fraud prevention measures.

The Charity Fraud Report 2024 serves as a stark reminder that fraud remains a persistent threat. Charities must prioritise the implementation of comprehensive fraud prevention strategies and adopt a proactive stance against both internal and external risks.

By fostering a culture of awareness and collaboration, we can protect charitable assets, safeguard trust, and ensure the integrity of the sector. Together, through shared knowledge and collective effort, we can build resilience against fraud and continue to serve our communities with confidence.

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