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Do I need an armoury to protect me from charity theft?!

Fundraising | Niki May Young | 25 Aug 2010

Don't be an easy target, says Niki May Young. Protect yourself from charity theft. 

I’m not a fan of money. Don’t get me wrong, having it makes life a lot easier, I don’t object to having nice things around me and without it I couldn’t eat, which is one of my favourite past times. But in my humble opinion money is the root of all evil - except when it is doing good. With this is mind I’m quite dumbfounded by the recent spurt of theft and fraud within the sector.

This week the former finance director of Prince Charles’ charity the Foundation for Integrated Health was jailed for three years for siphoning £250,000 of funds out of the charity after he drowned himself in £850,000 of debt. In the same week a BBC report revealed the deeds of alleged criminals who delivered fake collection bags, passing themselves off as Breakthrough Breast Cancer to rake in the rewards of generous, unassuming givers in the South East.

This is hardly the first time this has happened either. Trawling through the news archives of national news services this kind of activity is happening all over the UK. I heard a story from a friend just the other day of a charity event held in the memory of a cancer sufferer where someone managed to run off with all of the collection pots, rendering the event a big fat loss-maker.

In February this year the problem was high on the political agenda and the former office of the third sector launched its Give with Care care campaign warning the public of potential fakery. And in July the Charity Commission released guidance warning charities of potential scams.

As trustee of a small charity myself, I’m concerned, any theft can see the end of our aid. My charity has shakers all across Brighton, left in the hands of strangers, but what can I do?

First of all, I think I have to trust. The actions of the few should not ruin it for the many. According to the DCLG citizenship survey for 2008/09 71 per cent of adults volunteered in some way with 47 per cent volunteering at least once a month. We have to remember that the majority of people are good, they just don’t get the publicity.  

Secondly, I have to be prepared. There is no accounting for some theft but if there is any way to prevent it, I should try. The recent HMRC fit and proper person’s test tries to address some of these issues by looking at the management of a charity and the individuals’ histories such as a history of tax fraud or disqualification from another charity.

But there are a few simple steps that you can take yourself. I’m going to list a few that are relevant for smaller charities now but let’s make this interactive – if you’ve got hints and tips for preventing theft or fraud why not add it in the comments:

Account for all of your property

Taking a regular inventory will help you keep track of all your assets and find out early on if there are any irregularities.

Regularly empty collection pots

If you’ve got collection pots dotted around, make sure they’re numbered, listed in your records by location and emptied regularly.

Maintain good communication

If someone is using your charity as a cover, eventually they will slip up and someone will try to contact you. Make sure your contact details are clear on your website and you are accessible

Manage your events

Make sure your events are well managed and all money is recorded and accounted for. Anybody looking after a collection pot should be listed in your records and report back to a representative at the end of the day.

If you suspect it, report it

Ok so I'm using terror-terminology but the same rule applies to charity fraud. If you are seriously concerned that someone in your organisation may be committing fraud, don't deal with it internally. Registered charities in England and Wales are required to report serious incidents to the Charity Commission. This includes any actual or suspected fraud.

Here's some related links you might also want to take a look at:

Protect your property against theft

Charity bags

Charity Commission warning and guidance

Crown Prosecution sentencing for obtaining property by deception

IoF fraud and scams advice

Now it’s over to you…

Niki May Young is Civil Society Media's website editor and trustee of passingiton

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