First published in the Telegraph newspaper on 14 July.
There can be no doubt that we are living in tumultuous times. Last week’s dramatic events in Westminster have captured headlines around the world, while the war that continues to rage in Ukraine represents a grave threat to security in Europe. Much closer to people’s homes, another storm is building: the rapidly increasing cost of living is expected to plunge many families into acute financial precarity in the months ahead. Many more will face financial worries of some degree as prices of groceries, household energy, road fuel and other essentials continue to rise.
It is during such times of collective challenge that charities come into their own, offering practical relief and other less tangible, but no less precious commodities: hope, community, and a sense of belonging. We have witnessed this again and again, most recently during the pandemic, and in response to the invasion of Ukraine earlier this year. I am confident that, as economic difficulties deepen, charities will again step up to the plate, serving as lightning rods for compassion, kindness, and resilience.
But as demand for charities’ support grows, they too face financial strain. With households’ discretionary spending squeezed, some of those who previously donated generously may curtail their giving. Charities also face the same inflationary pressures as the rest of us. After a pandemic that saw many charities spend down their reserves, these growing demands may bring some organisations to the brink.
And there are more subtle, and arguably more profound tests ahead for all charities. As we all tighten our belts, charities will need to be able to justify every penny of their spending. The public will be even less tolerant of financial carelessness in charities during times of financial crisis. Trustees and charity leaders ought to demonstrate the same skills and qualities their donors do: frugality, and restraint.
This is not just my opinion. Today, we publish the latest findings of our regular research tracking public trust and confidence in charities. They show that trust in the sector has largely held up over the last year, while many other institutions have suffered plunging levels of public confidence. Charities remain among the most trusted groups in society. This is welcome, and vital. But a closer look reveals that this trust is conditional. The public has clear expectations of charity leaders, notably that a high proportion of funds goes on the end cause, and that charities make a tangible, positive difference. The public also places great emphasis on leadership in charities – they want to see charities living their values not just in what they achieve, but how they do so.
As regulator, we don’t expect the trustees who lead charities – largely volunteers – to be super-human. I aim to lead an expert Commission that is fair, balanced and independent, and that means that while we will robustly tackle the most egregious wrongdoing, a major focus for us in the months and years ahead will be to offer support to trustees to get things right.
But I urge charities to listen to what the public is telling them, and to keep in mind, at all times, one of their most basic legal duties, namely that of prudence. A central principle even during times of calm, this will become an ever more important watchword as charities navigate the difficult months ahead, stewarding the charitable funds they are entrusted with.
9 comments
Comment by Max White posted on
As a former volunteer subsequently adopted as a paid instructor I found the charity that I worked for NACRO to be very questionable. The CEO's first move when newly appointed (after serious concerns of his predecessor's wife's connection to government contracts) was to award himself a 17% pay rise. Jacob Tass might still be in position, I seriously hope not, a charity that once cared for ex-offenders sought to become a subsidised third rate education outfit(I was asked to falsify teaching hours) in order to continue securing government funding! And health and safety of vulnerable adults, and overstretched decent hard working staff, don't even begin to ask.
Unfit for purpose and drawing charity funds, a modern disgrace. Contact me if you wish, I have ALL the documented evidence.
Comment by Emma posted on
Hi Max, if you would like to report concerns about a charity please visit our complaints page: https://www.gov.uk/complain-about-charity
Kind regards, Emma
Comment by A.Brown posted on
"As we all tighten our belts, charities will need to be able to justify every penny of their spending. The public will be even less tolerant of financial carelessness in charities during times of financial crisis. Trustees and charity leaders ought to demonstrate the same skills and qualities their donors do: frugality, and restraint."
Does a charity like Mermaids who are challenging LGB Alliance's charitable status have to publicly declare where they are getting the money from to fund the case?
Comment by Graham Baughan posted on
Can anyone give us guidance on holding an ICT( Independent Charitable Trust) to account on gross neglect of duties.
Are independent charities protected?
Comment by Deb posted on
Hi Graham, if you have concerns about a registered charity that you’d like to report to us, you can submit a complaint via our website: https://www.gov.uk/complain-about-charity Kind regards, Debbie
Comment by Graham Baughan posted on
Hi Debbie
Thank you for your feedback.
Much appreciated.
Regards
Graham
Comment by Graham Baughan posted on
Hi Max
We are holding an ICT to account for gross neglect of facilities including numerous Health and Safety issues, Security,Safeguarding and obviously Risk to customers.
Standards of service are appalling.
Like yourself, we have evidence.
Regards.
Graham
Comment by Graham posted on
One of the most frustrating aspects of reporting charities for misconduct and negligence is the actual complaints process itself.
It seems that charities are protected from all sides, including the CC themselves.
It’s the same with the HSE.
No wonder standards in this country are so poor when those overseeing these organisations make it as difficult as possible for the public to have their say.
Comment by Louise Barson posted on
Hi is there any annual report or research that collates how much different charities spend on their respective causes in % terms and how much on fundraising and other overheads