The Charity Commission urges charities in England and Wales to report any suspected or confirmed serious incidents.
Serious incidents are defined as events which either risk or result in major problems. Such examples include a significant loss to a charity’s money or assets, or damage to a charity’s work, property, reputation or beneficiaries.
Examples of significant incidents
These include fraud, theft, large donations from unverified sources or mistreatment of vulnerable individuals supported by the charity. Other risks which should also be reported include suspected links between the charity and illegal organisations, the absence of a procedure to check out prospective trustees or staff and any suspected criminal activity involving the charity.
The number of serious incidents reported has increased significantly. Furthermore, the Commission has also discovered further cases that were not reported. Consequently, the true extent of the risks charities are facing is not known.
Any actual or suspected incidents should be reported by trustees to the Commission as soon as they are discovered. Even if the police or other regulators have already been informed.
Declaring unreported serious incidents
Any charity trustees who are required to file accounts must also declare unreported serious incidents when they complete their annual return. A failure to do so is a criminal offence under the Charities Act 2011.
Michelle Russell, Head of Investigations and Enforcement at the Charity Commission, said; “We see cases where charities experience more serious problems down the line, including reputational damage, in part because trustees failed to report an incident to us in good time. So my message is: don’t compound the problem that has occurred. Help solve it by reporting it to the Commission.”
You can find further information here HMRC guidance: How to report a serious incident