ACNC commissioner Gary Johns says all charities may be vulnerable to fraud.
‘In 2020-21 we received approximately 2000 concerns about charities,’ said Dr Johns.
‘The most common […] were about individuals obtaining private benefits from charities or perceived mismanagement of funds.
‘Charities are not immune to fraud. With billions of dollars being generated in revenue each year, [those] that do not have adequate financial and governance controls are vulnerable to fraudsters.’
Dr Johns said it was better to prevent fraud in the first place rather than investigate and act afterwards.
‘We always encourage charities to develop an antifraud culture from the very beginning,’ he said.
The Australian Charities and Not-for-profits Commission’s governance toolkit includes resources to help charities manage risks, including financial abuse, cybersecurity, and working with partners.
Many charities develop working relationships with partners, which might be other charities and not for profits, businesses, commercial enterprises, and suppliers. Charities should ensure that their partner relationships are well planned, supported by a solid written agreement, and pursue the agreed charitable purposes.
Charities should be aware of partnership risks and be confident that they have the right processes to manage one.
The toolkit includes a comprehensive guide and accompanying assessment, a template document for monitoring a partnership, and a list of important partnership considerations.
The toolkit can be accessed on the ACNC website here https://www.acnc.gov.au/for-charities/manageyour-charity/governance-hub/governance-toolkit
