Protect your Organisation from Fraud
Within the current cost of living crisis, many individuals are struggling to make ends meet or feeling under pressure to secure additional income, and others have more sinister reasons to take advantage of organisations when they see the opportunity. Both are equally likely to feel the pressure to commit fraud, even if it was a charity or non-profit organisation that was involved. It is very unfortunate, but we all know that some individuals or groups will resort to rather unethical avenues in order to get what they want and following this, charities can find themselves as a target.
Fradulant activity can come about in may forms, whether it be a embelished grant application, exagerating the truth of a workplace accident or incident, or people posing as suppliers in order to take payment with no intention of supplying the goods or service paid for.
It isn’t always about the money!
A loss of income or funds is usually the first and most obvious thing that springs to mind when you think of fraudulent activity, but there are other more catastrophic and longer-lasting impacts to different sections of your charity. For instance, consider how your volunteers and staff might be affected if they are investigated and questioned in a fraud investigation. The most honest members of your team could struggle with and relationships in some occasions irreparable if they feel you don’t trust them.
It is important to remember how harsh the media can be, and how stories can be twisted no matter how sensitively the situation is handled. The PR following fraudulent activity can cause many issues that can continue for a time.
Luckily there are a few simple steps you can take to minimise the risk or impact of fraud to your charity, allowing you to focus on your meaningful contribution to society.
Be prepared
Ensuring you have the appropriate insurance and protection of your assets is a very important part of being prepared, including physical cash and online transactions. We don’t need to tell you how important cash-flow is for your charity, but we want to remind you just how careful you need to be. Remember, just because you’re a charity, doesn’t mean you aren’t at risk of being exploited for another’s gain.
Being aware of the risks you are exposed to will help you remain vigilant and mindful in every interaction and transaction you make, which is a huge part of protecting your charity.
Trust your team
From the beginning, you should ensure you have the right people working alongside you. A firm process for hiring staff and volunteers, but also for reviewing grant applications or supplier quotes will help you create a team you can rely on. Also working with a Broker like ourselves, we will support you in ensuring all aspects of your organisation has the adequate level of cover for your charity’s individual needs.
When you have your dream team ready for action, you should spend time training them on how to identify signs of potential fraud, such as common spelling errors, unusual written or verbal tone that isn’t consistent with that of the person they are communicating with, or urgent or final notices for requests that come out of the blue, are some of the main ones to note and they should be questioning this even if it turns out to be a false alarm.
Risk assessments aren’t just extra paperwork!
Knowing a risk straight out is a great first step, however, writing up a risk assessment will support you in visualising the vulnerable areas and what can be done to protect them. If you don’t know where to start, we are happy to help talk through this with you or using a professional service is a great investment into the security and longevity of your cause.
A risk assessment will also help you maintain accountability with the most suitable members of your team. Individuals will understand the responsibilities they hold, with multiple people caring for the higher risk areas such as finances, which will help you catch anything that might fall through the first net.
You should also ensure you have a comprehensive and up-to-date health and safety record for your team, to help reduce your risk of injury fraud.
Insurance is reassurance
Allowing us to support with your insurance needs will ensure the insurance policy we recommend is one that covers you for all risks that your charity or trustees are exposed to, and we will disclose and advise on any exclusions that may be included. As an insurance broker we can help you find the right policy for your specific needs, so speak to us if you have any doubts at all. We pride ourselves on how we are able to help you protect your charity and you’ll see how so many of these best practices can easily slot into place, so you’ll be able to focus on the important work you do, safe in the knowledge that you are as protected as can be.
