NCVO Task and Finish Group sets out recommendations for better regulation of charity fraud

The Government needs to work in partnership with the voluntary sector to address the risk of charity fraud, according to a new report produced by NCVO’s Task and Finish Group which is launching today.

Managing Risk: A New Approach for the Fit and Proper Regulation of Charities stresses the need for meaningful consultation with voluntary organisations on any fraud prevention measures before they are introduced. It also calls on the Charity Commission and HM Revenue and Customs to improve their information sharing systems, to simplify processes and avoid unnecessary duplication.

We set up the Task and Finish Group in the wake of concerns that some measures introduced to protect charities from fraud are not fit for purpose and create an undue administrative burden. The group was asked to analyse the level of protection provided respectively by the Charity Commission and HMRC, and identify possible areas of overlap.

Managing Risk, sponsored by Deloitte, makes a total of 13 recommendations for improving the regulatory framework in which charities currently operate. 

Lord Plant of Highfield, Chair of the Group, said:

'The recommendations of this report set out some important steps towards a more efficient model of regulation: our aim is to reduce burdens and unnecessary costs, while ensuring public trust and confidence in the sector is maintained.’

While research shows that the incidence of charity fraud remains low, fraud can be hugely damaging to charities. We will be communicating these challenges to Government and discussing with relevant departments how the Group’s recommendations can be taken forward.

Find out more on our policy webpages and download the report (PDF 454KB) and executive summary (PDF 69KB).