Many people seek trusteeships in order to help a cause they believe in and give something back to society. Well-meaning and dedicated members of the board are vital to ensure that the objectives of the organisations are achieved.
However, a growing number of charities are becoming subject to fraud. The issue has become such a concern that the Government launched a new website to advise charities on how to stay safe.
Tait Walker’s Forensics team have assisted Trustees in a number of cases where frauds have been uncovered. In our experience, many frauds could have been prevented had simple controls been put in place. The segregation between the trustees and the staff often means that flaws in systems and controls are missed and provide an opportunity for a would-be fraudster to act.
The composition of the board is vital to ensure that a charity is run correctly. We often see that internal frauds have been committed in charities where there are no Trustees with a financial background on the Board.
Trustees are often not made aware of their wider responsibilities and their liability if things go wrong. For example, if a charity is not incorporated, then the financial responsibility of the Trustees is not limited to the charity and they can potentially become personally liable for any failings that happen when they are part of the Board.
Tait Walker Forensics will be hosting an event aimed specifically at Charity Trustees to talk about the responsibilities and risks associated with being a Trustee with a particular focus on avoiding internal fraud.
If you would like further details of this event, please contact firstname.lastname@example.org.