“Charities don’t always understand their duties”

Charity Commission 20th of April 2016

This quote is taken from a speech given by Sarah Atkinson (Director of Policy and Communication) during Fundraising Week. I found it disheartening that after all the guidance, advice and work of those who seek to improve the governance of charities we appear to be failing comprehensively.

Charities are a big part of our society and in a multicultural plural society they are one of the things which help unite us through a shared value, that is, giving help to others. But a few charities, and Sarah Atkinson mentioned: Go Gen, Kids Company, Age Concern and Eon, can undermine the reputation and trustworthiness of all charities. A recent YouGov survey supports the view that while trust and confidence in charities remains high it has fallen. That is not a situation that any of us would wish to see, in I’m sure that we would want to see it reversed.

The Commission’s view is that many of the problems which have enveloped charities over the last 12 to 18 months could have been avoided through better governance. What is also clear is that the commission feels that the charity landscape, the world in which we operate, has changed, in particular the level of media scrutiny has increased. Given what the media has highlighted and the public’s reaction to those revelations mean that it is unlikely that media scrutiny will reduce. Charities have been under a microscope and will continue to remain the for the time being.

Part of the Commission’s response has been to revise its guidance so that trustees should be clearer about their duties. I find it slightly worrying that the Commission’s Director of Policy and Communication said in her speech “And you will see that in blunter, clearer language.” The word “blunter” worries me.

 The good news is that Sarah Atkinson made seven points to help trustees focus on their duties. They were certainly clear and succinct. The point that I would want to emphasise is that Sarah Atkinson stated that it was not just about having the processes but more importantly using them. Simply put a tick box approach, we have the procedures and processes, will not be good enough. So what were her points:

“What trustees need to do, focusing on the governance of charities

One of the best ways for trustees to make sure that they are complying with their legal duties is to put processes in place that will encourage good governance. This is about:

• setting and monitoring the charity’s strategic aims and direction
• ensuring that there is strong management of its money, reputation and other assets
• having effective systems, safeguards and controls in place

However it’s not enough to just have these processes, you have to use them.

• It’s also about trustee boards being committed to improving their own performance.
• Having the right structure and enough time for effective discussion and decision-making.
• The right mix of skills and expertise.
• Making regular opportunities for re-assessing whether that balance is right.”

When you look at the list does your charity have those processes in place?

More importantly how well do you use them, if at all?

For a copy of the speech go to:

https://www.gov.uk/government/speeches/sarah-atkinson-speech-at-fundraising-week-20-april-2016