Fraud is one of the most serious threats facing charities today. Whether it’s internal misuse of funds or external cyber scams, the impact can be devastating—not just financially, but reputationally. At Mysoft, we help non-profits take proactive steps to strengthen their defences and build a culture of financial integrity, using tools like Sage Intacct to embed risk management into everyday operations.
As funding pressures increase and operations become more complex, charities must strike a careful balance between delivering impact and ensuring financial stewardship. Fraud prevention and risk management are no longer optional—they’re essential to protecting resources and maintaining public trust.
What Fraud prevention matters
Fraud erodes trust, damages donor confidence, and diverts resources away from beneficiaries. The Charity Commission continues to report rising cases, reminding us that no organisation is immune.
Protecting against fraud isn’t just about avoiding loss—it’s about safeguarding your mission and maintaining the public’s confidence in your cause. Every pound lost to fraud is a missed opportunity to create impact.
Laying The Foundations for risk management
To build a strong defence against fraud, organisations need more than just a few internal checks. They need a framework—grounded in leadership, supported by policy, and carried out by every individual in the charity.
Strong Governance
Trustees and leadership must champion accountability and model risk-aware behaviours.
Regular Risk Assessments
Map out vulnerabilities, assess impact and likelihood, and take targeted action.
Clear Policies
Establish guidelines for spending, approvals, and reimbursements, based on sector best practices.
Staff Training
Establish guidelines for spending, approvals, and reimbursements, based on sector best practices.
Common Fraud Risks In Charities
Understanding the different ways fraud can manifest is key to staying ahead. Here are a few of the most common types:
- Internal Fraud: Often due to poor separation of duties. When one person has too much control, it creates opportunity.
- Cybercrime: Phishing and ransomware target vulnerable systems. Email impersonation scams are especially common.
- Grant Misuse: Without proper tracking of restricted funds, grants can be misallocated—leading to compliance risks.
- Payment Diversion: Fraudsters impersonate suppliers to trick staff into sending payments to false accounts.
How Sage Intacct Supports prevention
Technology plays a vital role in modern fraud prevention. A platform like Sage Intacct introduces layers of protection that manual systems simply can’t match. These include:
- Automated Approval Workflows: Requests are routed to the right people based on thresholds, with built-in oversight.
- Full Audit Trails: Every change is logged—giving visibility into who approved or edited financial data.
- Real-Time Alerts and Dashboards: Detect anomalies early with alerts for unusual spend patterns or unexpected activity.
- Cloud Security: Role-based access, encryption, and multi-factor authentication keep sensitive data safe from threats.
Embedding a culture of vigilance
Fraud prevention is not just a finance issue—it’s an organisational mindset. Charities that foster transparency at every level are better prepared to detect and respond to risks.
Here’s how to embed that mindset:
- Encourage Questions: Let staff know it’s okay to challenge processes or flag anything that feels off.
- Run Spot Checks: Internal audits or rotating duties can reveal hidden issues.
- Empower Whistleblowers: Create safe channels for people to speak up, without fear of backlash.
- Stay Current: As fraud tactics evolve, so should your training, policies, and tech safeguards.
Real-world impact
One charity we worked with had a single finance officer managing multiple financial processes manually. This lack of oversight led to months of undetected fraud. By switching to Sage Intacct and implementing stronger internal controls, they recovered funds, rebuilt trust, and significantly reduced risk.
This is just one example of how the right combination of process and technology can turn vulnerabilities into strengths.
Fraud prevention is about more than controls—it’s about creating a culture of accountability, supported by the right technology. With Mysoft and Sage Intacct, you can move from reactive oversight to proactive risk management.
Let’s build a finance function that protects your resources, your people, and your purpose. Get in touch to find out how we can support your charity’s next steps.
