The Charity Commission is calling on charities to check their internal financial controls with the help of its redesigned guidance

Published on Wednesday 26 April 2023, the updated guidance (known as ‘CC8’) explains the role strong internal financial controls play in ensuring trustees can safeguard their charity’s resources. The restructured guidance is now more concise, clearer and covers issues that were not in existence or widely relevant to the sector when first drafted.

The guidance also includes an updated checklist to help the charity sector–which generates an income of £80 billion a year in England and Wales – put it into practice.

Last week, the Department for Science, Innovation and Technology published research which reported that 24% of charities experienced a cyber-attack in the last 12 months. New sections of the regulator’s guidance cover issues including using mobile payments systems, such as Google Pay and Apple Pay; and considering donations of cryptoassets, such as cryptocurrency and NFTs.

Risks from cryptoassets highlighted include vulnerability to theft by hackers; potential sudden changes in value; difficulty in tracing donors, and a lack of protection from agencies such as the Financial Services Compensation Scheme (FSCS) or the Financial Conduct Authority (FCA) if something goes wrong.

The regulator has also refreshed existing advice on more traditional risks, such as when fundraising and holding public collections; making payments to related parties; and operating internationally; and added a section on accepting hospitality.

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