Press Release

Charities - don't go off the rails! 

Commission’s Charities Back on Track report provides a casebook of real-life problems and how to avoid them

(Immediate Release - 10 September 2008)

The Charity Commission, the independent regulator and registrar of charities in England and Wales, has today published Charities Back on Track, a new report bringing together themes and lessons from the compliance work it has carried out over the last year.

This is the first time the Commission has brought together the impact and lessons of investigatory case work. The report provides charities with a casebook of real-life examples of problems in charities, explaining how the Commission dealt with them and providing guidance on how to prevent similar situations. Examples given run across six key themes, including cases that provide guidance on good governance, fighting fraud, fundraising, vulnerable beneficiaries, tackling the threat of terrorism, and disputes.

Charities Back on Track also takes a statistical look at the cases that the Compliance and Support team dealt with in 2007-08, with 42 inquiry reports published, 171 non-inquiry compliance cases closed, and £16 million of charity assets directly protected.

The report also identifies key themes and emerging trends across this work, and in particular identifies poor basic accounting and reporting practices as a problem common to a number of the charities it dealt with in the year. It also points to a number of cases where charities have decided on ‘another chance’ for individuals with a previous record of abusing vulnerable people, allowing them to become involved in ways that put the charity and its beneficiaries at risk.

Andrew Hind, Chief Executive of the Charity Commission, said:

“This report brings together the huge variety of our compliance work for the first time, showcasing some of the most interesting and significant cases we’ve dealt with this year. It gives trustees pointers to ensure they don’t repeat the mistakes of other charities, as well as letting them keep their fingers on the pulse of emerging sector-wide trends. We hope it provides charities with a useful insight into how we approach our compliance work, and the impact of our regulatory action.”

The report also sets out the Commission’s main priorities for the coming year, including development of a comprehensive outreach programme and the implementation of the Commission’s counter-terrorism strategy.

Key statistics also show how the Commission’s Compliance and Support team has significantly reduced the time taken to resolve the sort of cases that it is dealing with. In 2007-08, 74% of section 8 inquiries were closed in nine months, compared to 24% in 2006-07; and in 2007-08, 90% of non-inquiry cases were closed in six months, compared to 67% in 2006-07. In total, 200 cases were brought to a conclusion during the year, with 104 active cases at year end.

Charities Back on Track: Themes and lessons from the Charity Commission’s compliance work 2007-08 is available from the Commission’s website at www.charitycommission.gov.uk.

Ends.

Notes to Editors

1. The Charity Commission is the independent regulator for charitable activity in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218.

2. The Commission’s Compliance and Support team has primary responsibility for the delivery of the Commission’s “compliance objective” involving regulatory work with charities where their assets, services or beneficiaries are at serious risk of abuse or damage. This includes risks to the reputation of individual charities, concern about public confidence in charities generally and the effective regulation of the sector. The role of Compliance and Support is to identify and investigate apparent misconduct or mismanagement in the administration of charities and to resolve difficulties found, whether by providing support to trustees or, where necessary, intervening to protect the charity by using the Commission’s legal powers.

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