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Charities are having millions of dollars stolen from them each year by their own staff to fund gambling addictions, according to a new study.
Research carried out by BDO Kendalls has revealed that 53 per cent of the money stolen in the sector was to fund gambling.
An earlier survey had found 22 per cent of money stolen from the business sector was used to gamble.
People working in the not-for-profit sector each stole an average of $180,643 to fund their gambling problem significantly higher than any other reason.
On average, $45,556 was stolen by people to maintain a desired lifestyle and $13,150 stolen because of financial pressures.
The research also noted that losses were unlikely to be recovered from someone with a gambling problem because they would have only minimal funds available.
Problem Gambling Foundation CEO John Stansfield said he knew the figure would be high, but was shocked that gambling related fraud was hitting charities worse than the private sector.
"Effective charities are very dependent on trust," he said.
"The public and the funders need to have confidence that they are using funds wisely and clients need to feel the organisation helping them has integrity."
Mr Stansfield said fraud and theft by employees undermined those relationships and posed a real threat to credibility and effectiveness for the whole non-profit sector.
Problem gamblers impoverished themselves and committed crimes to pay for their gambling, and often ended up going to charitable organisations for help, Mr Stansfield added.
"It's a perpetual cycle of harm. The only winners are the gambling operators who continue to clip the ticket on each transaction regardless of the consequences."
- NZPA
