Abstract
The charity sector in England and Wales comprises approximately 184,860 registered charities, 95% of which have annual incomes under £1,000,000. Fraud remains a significant concern, with estimated annual losses of £2.3 billion. Existing research highlights weak internal controls as a critical vulnerability, particularly for small charities. However, a gap remains in understanding why this issue persists: Why do certain small charities struggle to establish a robust internal control environment to safeguard against fraud?This study explores why some small charities face difficulties implementing effective internal control systems. It examines how everyday norms and practices within small charities emerge, persist, and evolve over time, and how these factors influence their vulnerability to fraud.
Using a qualitative research approach, this study applies a theoretical framework rooted in new institutional logics theory, with an emphasis on micro-foundations. Through semi-structured interviews with charity officers and key sector professionals, it investigates the norms and behaviours within small charities that may contribute to their susceptibility to fraud, focusing on how and why specific logics embed and endure, as well as the role of regulators and advisory bodies in shaping these logics.
The findings reveal competing logics within small charities, including professional, organisational, governance, and charitable logics. They provide insight into why certain competing logics prevail, grounded in the micro-foundations of logics. Dominant logics, such as professional logics, were found to have stronger micro-foundations in the perceptions of charity officers, particularly regarding legitimacy and identity, compared to weaker governance logics. These findings help explain why some small charities struggle to implement strong internal controls due to the inaccessibility of governance logics. They also contribute to theoretical advancements and practical strategies to address communication gaps and improve counter-fraud measures in the sector.
A key finding of the study is the identification of a charitable logic in which the resource environment plays a central role. Building on existing theory and interview data, the study suggests categorical elements of this charitable logic, with the resource environment as a significant factor, thereby contributing to theoretical advancements in this area. Future research may further develop this framework and test it quantitatively with a larger dataset to assess whether these findings are extrapolatable or generalisable across the sector.
| Date of Award | 22 Jun 2025 |
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| Original language | English |
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| Supervisor | Roza Sagitova (Supervisor) & Lisa Jack (Supervisor) |