Helen Oparinde, NCVS Group Support Coordinator, takes time out to virtually attend the Charity Commission’s annual public meeting on Tuesday 26 November 2024, and shares with us some key points discussed.
Role of the Charity Commission
The Charity Commission is the registrar and regulator of charities in England and Wales. Parliament has given them five statutory objectives, which are to:
- Promote compliance by charity trustees with their legal obligations in exercising control and management of their charities.
- Enhance the accountability of charities to donors, beneficiaries, and the general public.
- Increase public trust and confidence in charities.
- Promote awareness and understanding of the operation of the public benefit requirement.
- Promote effective use of charitable resources.
Orlando Fraser KC, Chairperson of the commission, used his final annual public meeting speech to highlight the principles of fairness, balance, and independence that underpin the Commission’s strategy for 2024–2029. Balance means ensuring the pendulum between enforcement and support never swings too far in one direction.
The Commission has opened more than 200 regulatory cases relating to public statements or alleged support for terrorist groups by charities since the escalation of the conflict in the Middle East in October 2023. With over 40 referrals to the police in connection with such cases. In holding to account wrongdoing at the Captain Tom Foundation, Fashion for Relief, and Burke’s Peerage and the Mahfouz Foundation, the charity commission shows that fame, celebrity, and connections are no protection against the law or their regulatory oversight. Putting that aside, trust in the sector is now at a ten-year high and on an upward trajectory. But charities need to keep on top of risks that impact this trust.
The Charity Commission requires charities to report serious incidents. If a serious incident takes place within your charity, it is important that there is prompt, full, and frank disclosure to the Commission. You need to report what happened and let the Commission know how you are dealing with it, even if you have also reported it to the police, donors, or another regulator.
Protecting your charity from fraud
The meeting was held during charity fraud awareness week, and reference was made to new guidance being released. The commission has opened 603 cases relating to fraud and a further 99 cases relating to cybercrime issues in the last year.
On 27 November 2024, new guidance titled Protect Your Charity from Cyber Crime was launched. On the same day, the protect your charity from fraud CC8 guidance was updated. The CC8 guide explains what to do if fraud or attempted fraud is discovered at a charity and provides tips on how to reduce the risk of fraud taking place. It explains the importance of having robust internal financial controls and signposts to the Commission’s more detailed guide about this.
The Commission’s cyber-crime guidance seeks to help charities protect themselves from this ongoing threat. It sets out the importance of establishing an internal culture of fraud and cyber-crime awareness. Cyber fraud is a key area of concern for many organisations that handle money and personal data. The most common type experienced by charities is phishing attempts.
Financial resilience, AI, and volunteering
During the past year the charity commission has received over 9,000 applications to register a charity, a record high—around half of which were added to the register, showing that the desire to contribute and make a difference is still there. However, the speech by the new CEO David Holdsworth reflected on pressures affecting the sector.
- Financial resilience of the sector
The pandemic and the cost-of-living crisis that followed have left many charities depleted. Some continue to face a ‘triple whammy’ of simultaneous pressures on demand, costs, and income, leading to acute and, in some cases, chronic battles for survival and sustainability. Read NCVS’s blogs on why keeping a check on your reserves is important post-budget and the landscape of funding is changing. Utilise Community Accounting Plus’s payroll calculator to help you work out the costs of employing someone compared to the funding available. All to aid your charity's approach to financial resilience.
- Artificial Intelligence
Charities, like other organisations, are contending with rapid technological and social change. The tools charities use in working, and attitudes and expectations that influence charities’ work, are changing at a pace that seems likely only to increase. Such as people’s changing expectations around immediacy. The Charity Commission wrote a blog titled Charities and Artificial Intelligence back in April 2024, explaining that the key consideration is that AI should be used responsibly in a way that furthers your charity’s purposes.
- Volunteering
There was mention that there is a worrying downward trend in volunteering. With some data showing levels of volunteering have dropped starkly since the pandemic. With a concern of being burnt out of the people who are supporting their local communities. If you are reading this and would like to help, then search for volunteer opportunities in your local community. Or if your organisation would like help with recruiting volunteers, please get in touch with our Volunteering Development Officer, Dave Thomas at davet@nottinghamcvs.co.uk.
New Year's resolution
As we come to the close of 2024, we wish you a peaceful festive period and thank you for all the work you have done over the past year to help your local communities.
Consider your New Year resolution to have a look at the training we offer and book on the course that is relevant to your needs.
The training is for both operational volunteers, staff, and trustees/committee members. It ranges from skills for running an organisation to safeguarding and skills for leaders of volunteers.
And get in touch if you need any support to help your organisation thrive and achieve its potential, and we will see how we can help. Support can range from starting out, managing your organisation, to closing. Visit our 'Contact us' page for more information on how to get in touch.
Helen welcomes any comments about this blog; contact Helen directly by email at heleno@nottinghamcvs.co.uk.
