Reform Research Trust

Registered Charity No. 1103739

You can also view the colour PDF version of Reform Research Trust report.

This is a Regulatory Case Report into Reform Research Trust, published on 18 July 2008.

In accordance with the principles of best regulatory practice and due to the high levels of public interest in educational research charities, the Commission has decided to publish a Regulatory Case Report on its recent case concerning this charity. This will also enable the Commission to identify wider issues for other charities.

The Charity

Reform Research Trust (“the Charity”) is an incorporated charity registered in 2004. The objects of the Charity are “to advance the education of the public and in particular to promote for the public benefit research into matters of public policy and to disseminate the useful results thereof”.

The income of the Charity for the financial year ending December 2006 was £358,006. In the financial year ending December 2005 the income was £394,220, and in the financial year ending December 2004 it was £328,831.

The Charity conducts research on a number of issues, including: the economy, health, education and law and order and disseminates its findings to the wider public.

Source of Concern

The Commission received a complaint in March 2007 from a Member of Parliament. The complaint included allegations that the Charity:

• had close affiliation with the Conservative Party; and
• was carrying out party political activities and was consequently in breach of the Commission’s guidance on charities and campaigning (CC9)¹.

Conduct of the Case

This was the first occasion where the Commission had engaged with the Charity regarding the allegations outlined above. From our initial engagement with the Charity on these issues, the trustees have cooperated with our enquiries throughout. Applying the Commission’s Risk and Proportionality Framework, it was decided that this case would not be dealt with as a formal statutory inquiry under the Charities Act 1993 (as amended by the Charities Act 2006).

The aim of our case was to:

• review the Charity’s activities;
• determine if the Charity was carrying out inappropriate party political activities and had improper links to the Conservative Party; and
• clarify the relationship between Reform, Reform Research Trust and Reform Britain, all of which were referred to on the Charity website with little explanation of their individual role and remit and, therefore, it was difficult to distinguish one entity from another.

During the course of our case we conducted a number of enquiries to determine if there was any substance to the complaint that had been made. This work included:

• conducting a review of a randomly selected sample of the Charity’s publications;
• reviewing the layout and information contained on the Charity’s website; and
• meeting and corresponding with the Charity’s trustees to discuss the complaint, the Charity’s governance, its activities and how these further its charitable purposes.

Findings

Education, in a charity law context, does not have to be value free and completely impartial. Education can be based on broad values that are uncontroversial which would be generally supported by objective and informed people. However, the advancement of education cannot be used to promote a political or a predetermined point of view².

Accordingly, although education can have an uncontroversial broad value base, it has to allow those being educated to make up their own minds on controversial issues. This means educational charities should:

a)         research and present information in a balanced way;

b)         consider the arguments in an appropriate way related to the evidence; and

c)         ensure conclusions are based on evidence and analysis.

As an educational charity working in this area, the Charity must take particular care to preserve balance and neutrality given its close association with the political environment³.

An educational research charity working in the field of public policy may well have an association with a particular political perspective. However, as an educational charity it cannot promote a particular political or other point of view. It must carry out its public policy work with a methodology which is balanced and impartial, leading the public and other interested persons to consider their proposals as being objectively formed.

Allegations of political bias:
The Commission conducted a review of Reform Research Trust’s activities and determined that there was no evidence to support the allegations of party political bias towards the Conservative or any other political party.

The Commission concluded that the materials and research produced by the Charity is what the Commission would expect from an educational research charity. An analysis of publications released by the Charity demonstrated that they are empirical in nature and do not support any political party.

Charity’s relationship with Reform and Reform Britain:
During our review we did identify a number of concerns about the Charity and its relationship with Reform and Reform Britain. We determined that information contained on the Charity website was potentially misleading and could be confusing for supporters, beneficiaries and members of staff. Essentially, there were three entities referred to on the Charity website: Reform, Reform Britain and Reform Research Trust. The Commission’s enquiries found that there was no clear distinction between Reform Britain (a non-charitable campaigning organisation) and the Charity. The website referred to “Reform” and failed to identify whether it was referring to the non-charitable or charitable organisation.

The Commission received confirmation from the trustees, that Reform Britain which is a campaigning not-for-profit organisation, is now dormant. All activities, including research, are now carried out by the Charity in furtherance of its charitable purposes.

The Commission identified that Reform Britain and the Charity had connected arrangements in place for the employment of staff. These are historic and appear to have been established when the Charity was first created. The Commission emphasised that the structure of the Charity needs to be clearly explained and set out for members of staff, beneficiaries and supporters. Also, it is important that all parties are aware that Reform Research Trust is a charity and not a campaigning organisation and that they understand the legal framework within which charities operate.

The Commission identified that the Charity had not been appropriately credited in various publications it produced and the failure to assert its copyright ownership may leave these assets unprotected.

Outcome

The Commission has provided the Charity with regulatory advice and guidance on a number of issues which will help to ensure that they are effectively meeting their charitable purposes, are educational in charity law, that their work is transparent and to assist them in moving forward.

The Commission has reminded the Charity that when a charity operates close to the political environment, it must safeguard its independence and ensure that any involvement it has with political parties is balanced. We have emphasised that it must retain its neutrality and autonomy when interacting with any political party and its members.

The Commission provided regulatory advice to the Charity about conducting a review of the following within the next twelve months;

• review and amend the content of its website to ensure that it accurately describes the Charity and removes any confusion or perceived connection with the now dormant campaigning organisation Reform Britain;
• ensure that the Charity adequately protects its assets and is appropriately credited in all publications; and
• ensure that staff receive sufficient training regarding the purpose of the Charity, its objects and governance.

We will monitor the Charity to ensure that they make the necessary changes and will provide any additional guidance and support that is needed to ensure that they further their charitable purposes.

Information for the wider sector

Trustees of educational research charities which work close to the political environment should pay particular attention to the inherent risks associated with the nature of the work they undertake. These charities cannot be involved in directly promoting government policy for political advantage, the policies of a particular political party, or be involved in party politics in any way. They must ensure the political neutrality of the work they do. This means that a charity cannot champion or otherwise support the Government, one political party and/or discredit another. It may express support for particular policies which will contribute to the delivery of its own charitable purposes as long as the charity’s independence is maintained, and perceptions of its independence are not adversely affected⁴.

The Commission is a risk-based and proportionate regulator. This means that we engage with charities in a way which will make most difference to them and those who benefit from them. Any regulatory action we take will be evidence based and proportionate, fair and reasonable, taking account of the issue and the risk involved to the charity and its beneficiaries and the capacity of the charity to comply. The Commission expects trustees to make conscientious and continuing efforts to ensure that they resolve the issues that have already been raised with them by the Commission. Where a previous commitment has been given, the Commission will view non-compliance as a serious concern⁵.

If a charity is connected with an organisation which is non-charitable, the charity must ensure that in all publications and promotions, including fund-raising, it distinguishes itself clearly from the non-charitable organisation. This is to ensure that the public understands the differences between the two organisations and there is no confusion in the public’s dealings with the charity.

Footnotes

1. For a copy of the Commission’s guidance  Speaking Out - Guidance on Campaigning and Political Activity by Charities (CC9) please visit our website.

2. See Southwood v AG 1998 WL and 2000 WL (CA (CivDiv)) ‘It remains the case that the mere promotion of an opinion which is not shown to have educational value (say a particular position on a matter of public controversy) will not be charitable or to put it another way, the attempt to inculcate a particular point of view not exhibiting a general educational tendency will not be charitable.’ and ‘The court is in no position to determine the promotion of the one view rather than the other is for the public benefit.’

3. Speaking Out - Guidance on Campaigning and Political Activity by Charities (CC9)

4. For further guidance on charities and risk see Charities and Risk Management which can be viewed on the Commission’s website and for guidance on political campaigning see Speaking Out - Guidance on Campaigning and Political Activity by Charities(CC9).

5. For further information on the Commission’s approach to risk and proportionality see the 'Risk and Proportionality Framework’ which can be viewed on the Commission’s website www.charitycommission.gov.uk/investigations/riskpropintro.asp

Date of Publication: 18/07/2008