You are receiving this alert as your charity could be subject to upcoming changes in the law around preventing fraud.
On 1 September 2025 a new failure to prevent fraud offence comes into force.
This offence will affect large, incorporated charities that meet at least two of the following criteria: more than 250 employees, £36m of income or £18m in total assets.
Under the offence, an organisation may be criminally liable where an employee, agent, subsidiary, or other “associated person”, commits a fraud intending to benefit the organisation (or its clients) and the organisation did not have reasonable fraud prevention procedures in place.
It does not need to be demonstrated that directors or senior managers ordered or knew about the fraud.
The Charity Commission is alerting all relevant charities to read the Home Office guidance, and where necessary to enhance their approach to fraud prevention and seek professional legal advice.
Additional information:
If your charity has not already done so, you should read our guidance about internal financial controls, which was refreshed in April 2023. It gives advice on protecting your charity and its assets. A new short guide on protecting your charity from fraud was published in November 2024.
