Charity Finance Directors’ Group Online Fundraising Risks James Tarleton, Head of Fundraising Finance Kirit Naik, Head of Risk & Assurance July 2012

What we will look at Fundraising Events Emergency Fundraising

Types of Fraud Online collections Offline collections

Fundraising Events How do we collect funds online?  Worldpay BRC website online registration  JustGiving  Virgin Money Giving  BT MyDonate

Fundraising Events Affiliate web pages – Low risk  Third party controls  Financial reconciliations  BRC paid directly  Gift aid collected  Pre coded sites  Overseas entry fees

Affiliate web pages – Low risk

Fundraising Events Non Affiliate web pages – High risk  Reduced third party controls  BRC not paid  Gift aid not collected  Phishing for personal details  Bogus websites  “Totally outside of our control”

Emergency funds

Online / Electronic media fraud Minimal but can be very damaging  scams: appeals, S419, emotional, befriending  Phishing for data: HMRC forms, Gift Aid  Bogus websites: BRC.net  Cloned s: Red Cross supporter care  Japan Tsunami appeals: Western Union  Ebay auctions, seeking support from celebrities etc.

Targets  Organisational, BRC, Trustees  Donors, supporters  General public  Staff members  Volunteers  Beneficiaries

Risks Reputational: High  Alienating donors  Lack of supporter care  Agency relationships / terms of engagement  Use of the emblem issues: Trademark, copyright  Abuse of electronic data  Media relations

Risks Financial: Low  Loss of funds  Future/potential support and/or funds  Cost of control: systems, IT, reaction, monitoring  Legal costs

Addressing the risks  Compliance: Electronic Communications Regulations 2003, Data Protection Act 1998, Emblem protection, Charities Act  Guidance: Fundraising through electronic media, Code of fundraising practice (IoF)  Technical controls : Protected websites, secure , verification  Fraud line: Monitoring, response and reporting  Supporter care: Response and reassurance  External: Action Fraud reporting, Police, Charity Commission

Thank you and any questions