The Charity Finance Group is calling on charities to take a pledge aimed at reducing fraud in the voluntary sector.

The umbrella body said charities could not be completely immune to fraud, but they could take steps to minimise the risks and reduce the estimated £1.9bn a year the sector loses to it.

The Counter Fraud Pledge focuses on six promises, including that each signatory will create fraud policy, assess each year how well the policy is working and appoint a key person to be responsible for fraud.

Organisations that sign the pledge will be able to use a badge on their website to show people that the charity is doing what it can to protect its assets.

Heather McLoughlin, policy and public affairs officer at the Charity Finance Group, said fraud was one of the biggest challenges facing charities.

She said that although many charities had robust counter-fraud policies, others were still grappling with the issue.

“Our hope is that the Counter Fraud Pledge will increase awareness of fraud and how to tackle it,” she said.

“We also believe it will demonstrate to beneficiaries, funders and the people who support and donate to charities, that charities do take the threat seriously and are actively working to safeguard their organisations’ assets and reputation.”