Financial Safeguarding for Charities
Many charities and non-profits are well aware of safeguarding. These organisations regularly support vulnerable people, so knowledge of DBS Checks and other protective measures are usually well understood.
However, charitable organisations often spend so much time protecting vulnerable individuals from physical harm, that other forms of abuse can be overlooked. This is particularly true when it comes to financial safeguarding.
Financial Safeguarding
According to the Social Care Institute of Excellence (SCIE), financial abuse is the second most common type of abuse, following neglect.
Many vulnerable people need help managing their household affairs. This commonly includes management of their finances. This could be something as simple as doing the weekly shop on their behalf all the way through to having power of attorney.
UK Government defines financial abuse as:
‘financial or material abuse, including theft, fraud, exploitation, pressure in connection with wills, property or inheritance or financial transactions, or the misuse or misappropriation of property, possessions or benefits’
With this type of abuse being so common it's vital that charitable organisations are doing all they can to safeguard against it.
What can you do?
There are a number of things your organisation can do to help safeguard the finances of the vulnerable under your care:
Carry out financial background checks
Background checks can provide organisations with comprehensive information about the people they’re employing. Financial checks are compulsory for roles in many industries where people are managing money. They give employers the information they need to make informed decisions on people's suitability
Adverse financial checks search publicly available data to reveal information, including: CCJ’s, bankruptcies, voluntary arrangements, decrees in Scotland and administration orders.
These background checks are sorely underutilised in the care sector but could help identify those who intend to take advantage of vulnerable individuals.
Familiarise yourself with the abuse
When it comes to abuse, half the battle is knowing what indicators to look out for. Kent County Council have a comprehensive financial safeguarding toolkit that can help you understand what you need to be conscious of. The indicators include:
The disappearance of bank statements, other documents or valuables.
Disparity between assets and satisfactory living conditions.
The person lacks belongings or services which they can clearly afford
Large volumes of ‘junk’ mail.
And many more.
Taking the time to learn the signs can be the difference that means you can prevent financial abuse.
Train your staff
Educating yourself is a good start but all staff within an organisation need to be taught to recognise abuse. Various organisations offer ‘off the shelf’ safeguarding training courses, such as the NSPCC, Ann Craft Trust. Many of these organisations also offer bespoke training targeted at the unique requirements of your organisation.
While these courses are often an investment, an investment in safeguarding is never a bad thing. The more your staff know and learn, the better equipped to protect those under your care.
Have reporting procedures in place
Recognising financial abuse is only one element of safeguarding. Your organisation needs appropriate policy and documentation in place. Staff need to understand how to approach any instances or suspicions of abuse.
You should have procedures in place on how:
To actively safeguards the financial security of service users.
How staff can report concerns.
How to handle incidents.
How to involve local authorities if needed.
How to report concerns to your regulator(s).