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What is Charity Fraud?
Charity fraud is a blanket term for various incidents that involve fraudulent behaviour relating to charity and is part of the broader area of fraud law. Fraud by a charity in the UK is a serious offence and can be either internal or external. In internal charity fraud cases, employees, volunteers or trustees are typically the culprits. However, external charity scams may be carried out by fake charities frauding the public or fake companies frauding the charity.
Internal Charity Fraud Cases
These are some common examples of internal fundraising scams:
- Misuse of funds
Charity embezzlement or misuse of funds occurs when someone working within a charity handles charity funds dishonestly. This could include stealing charity money or using credit cards for unauthorised payments. Learn more about bank transfer fraud in our blog post.
- False expense claims
False expense claims are a type of payroll fraud that occurs when expenses are incorrectly claimed for more money than was spent, siphoning funds from the charity into personal accounts.
- Abuse of position
This form of charity fraud describes an incident where an employee may abuse their position of power or trust to manipulate finances or other staff members to commit money laundering or charity embezzlement.
- Poor internal procedures
Having a weak internal financial policy and poor financial checking procedures can make charities vulnerable to internal charity fraud.
External Charity Fraud Cases
External acts of charity scams include, but are not limited to, the following examples:
- Invoice fraud
Invoice fraud involves external activity whereby fraudsters pose as suppliers and send invoices to charities. The charity then intends to pay their supplier but, unknowingly, pays the fraudster instead.
- Unauthorised funding
Unauthorised funding happens when individuals pretend they are raising funds for a charity, convincing members of the public to donate to a legitimate cause, only to keep the money for themselves.
- Cyber fraud
This type of charity fraud can include phishing emails, impersonation, or hacking a computer or network in an attempt to obtain a charity’s sensitive data or access funds. You can learn more about online banking scams and advance fee scams here.
Charity Fraud Court Process
If you have been accused of defrauding a charity, you may have already been charged or arrested. Whatever situation you may find yourself in, the legal process for dealing with charity fraud cases can be lengthy and intimidating. Charity scams are taken very seriously, and, as a defendant, it is important to know your options. The law around charity fraud complies with the Charities Act 2011 and is complex. Therefore, we would strongly urge you to seek legal counsel and representation from a well-versed lawyer in this area of law.
The process begins with a report to the police, Action Fraud or the Charity Commission from someone suspecting foul play. Suspected charity scams are then investigated by the police and possibly by the charity commission; this can include financial experts who are given access to accounts and conduct within the charity.
As well as the inspection of records and devices, each person that works for the charity will be interviewed by the Charity Commission to collect necessary evidence.
In the event of confirmed charity fraud, the suspected perpetrator is arrested and charged, followed by an interview conducted by the police. Depending on the evidence found, a court case follows.
Charity Fraud Sentencing
If you are found guilty of charity scams, you could face anything between three months and ten years in prison. You may also be required to return the funds you stole. Sentencing in charity fraud cases depends on the particulars of the crime, which is why we advise defendants to seek legal counsel from an expert in charity fraud cases. Your conviction for charity fraud will go on your criminal record, and the length of the endorsement will depend on the nature and length of your sentence.
Have You Been Accused of Charity Fraud?
Seek professional advice from the outset if you are unsure how to avoid charity fraud when setting up a charity. Ensure that you keep all relevant documents from accountants, banks or solicitors. Such documentation can prove to be compelling evidence to demonstrate your genuine motivation and intention when setting up and operating your charity. It is advisable to seek expert legal advice before any police interview on allegations of charity or fundraising scams.
At St Pauls Chambers, our specialist barristers are experts in charity fraud cases. We can advise you on the investigative process of charity scams and provide comprehensive support throughout. If you or your client faces a charity scam investigation, contact us today.
For more insight into the different instances of charity fraud cases, please see below.

Barristers
FILTER BY EXPERTISE
Please select on of the suggested variants.
KCs
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Joint Head of Chambers
Sam Green KC
Call: 1998
Silk: 2015
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Associate Tenant
Nigel Sangster KC
Call: 1976
Silk: 1998
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Richard Barraclough KC
Call: 1980
Silk: 2003
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Simon Myerson KC
Call: 1986
Silk: 2003
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Bryan Cox KC
Call: 1979
Silk: 2005
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Associate Tenant
Jane Bewsey KC
Call: 1986
Silk: 2010
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Simon Bickler KC
Call: 1988
Silk: 2011
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Associate Tenant
John Harrison KC
Call: 1994
Silk: 2016
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Jonathan Sandiford KC
Call: 1992
Silk: 2020
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Associate Tenant
Cameron Brown KC
Call: 1998
Silk: 2020
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Nicholas Worsley KC
Call: 1998
Silk: 2023
There are no KCs suiting filter condition
Members
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Joint Head of Chambers
Denise Breen-Lawton
Call: 2000
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Jeremy Barnett
Call: 1980
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Philip Standfast
Call: 1980
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Nikki Saxton
Call: 1992
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Robert Smith
Call: 1995
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Associate Tenant
David Hughes
Call: 1997
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Derek Duffy
Call: 1997
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Alasdair Campbell
Call: 1999
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Andrew Stranex
Call: 2000
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Jane Brady
Call: 2001
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James Bourne-Arton
Call: 2001
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Danielle Graham
Call: 2003
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Hal Watson
Call: 2003
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James Lake
Call: 2005
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Andrew Nixon
Call: 2006
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Helen Chapman
Call: 2006
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Voldi Welch
Call: 2008
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Associate Tenant
Hannah Hinton
Call: 2008
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Angus MacDonald
Call: 2009
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Sophie Mitchell
Call: 2010
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Hannah Lynch
Call: 2011
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Stephen Flint
Call: 2012
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George Hazel-Owram
Call: 2012
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Kristina Goodwin
Call: 2013
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Stephen Elphick
Call: 2014
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Charlie Greenwood
Call: 2015
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Frances Pencheon
Call: 2015
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Jessica Heggie
Call: 2017
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Harry Crowson
Call: 2018
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Temitayo Dasaolu
Call: 2018
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Ayman Khokhar
Call: 2018
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Emma Handley
Call: 2019
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Matthew Moore-Taylor
Call: 2020
There are no Members suiting filter condition
Examples of Charity Fraud Cases:
The Institute of Fundraising has published an online Code of Fundraising Practice that should be considered to avoid charity fraud cases or fundraising scams. Case law highlights the following areas where people have fallen foul of the law and been caught in charity fraud cases:
- Failing to keep separate bank accounts and mixing funds.
- Using fundraising funds for personal use (i.e. personal outgoings or private business investment).
- Using the identities of legitimate charities without their knowledge for personal gain.
- Using a charity’s paraphernalia without their consent to raise funds fraudulently.
- Failing to use charitable donations for the specific purpose for which they were donated.
How Do I Report A Charity For Misconduct?
Suppose you suspect fraud by a charity in the UK where the action poses a serious risk of harm to the charity or people it was set up to help. In that case, you must complain directly to the Charity Commission using this online form. Here, you will find all the necessary details and types of evidence needed to open a case.
Blog
The Latest Charity Fraud News and Cases
Follow our blog for further information on the latest Charity Fraud news and cases.
2y ago
James Lake opens the charity fraud to the jury
The founder of a children’s cancer charity has gone on trial accused of fraud and stealing £122,000 of donations. Prosecutor …
James Lake opens the charity fraud to the jury Read More »
