Charity property fraud: how much is it costing your charity?

The Charity Fraud Survey carried out by BDO in partnership with the Fraud Advisory Panel in 2024 found that 42% of charities reported fraud or attempted fraud last year. It is estimated that, on average, property fraud can cost charities between £102,000 and £197,000 per incident. It also takes up a huge amount of charities' time and internal resources and creates reputational, financial and organisational risks.

How can charity property fraud arise?

Fraud can appear in several guises, both while a donor of land is alive and also after their death. Some of the more familiar types of fraud are:

• Identity fraud – such as a property being sold or mortgaged while the donor of the land still owns it.
• Undue influence – where the donor of land is subject to undue influence by persons known to them, for example.
• Fraud by an attorney or deputy – to better their own position, for example, and/or to intentionally devalue the land.

What can charities do to protect themselves from property fraud?

In a series of articles in the Legacy Times over the coming months, the Charity Property team will explore the types of fraud and how you can protect against them.

For this edition and as a starter for ten, our top tip is to register your charity's property with the Land Registry's Property Alert Service, so that you will be notified if any searches or applications are made against the property's title. You can do this by registering an email address with HM Land Registry here and providing the postcode or title number of the property.

The service is especially useful where the property concerned is empty and ensures that you are aware of anyone seeking to deal with (perhaps mortgage or sell) the property.  In some cases, people will purport to own and will sell or take a mortgage over such property. Registering for the service will ensure that you are informed about a buyer's initial searches, meaning that you will be forewarned.

Check back next time for a deeper delve into identity fraud and property.