New research from the Charity Commission
The Charity Commission published its latest research on 14 July. It covers the views of both the public and trustees. The research, conducted in spring 2022, found people living in more affluent areas with higher ethnic and cultural diversity trusted charities more compared to those in less diverse areas with low economic security. It also reported that fewer members of the public (56%) thought charities were ‘essential’ or ‘very important’ for society than last year (60%).
The research found that members of the public rarely bring up unprompted the role charities play in shaping social or cultural debates on topics such as diversity and
inclusion. When asked they are largely comfortable with charities pushing for change within areas specifically related to their expertise. Where there is some concern about charities pushing for social change, it is when that could be seen to detract or distract from the charity’s stated purpose. The research notes there are likely to be differences of opinion in interpreting what this means in practice, depending on the individual’s background and outlook. Overall, 51% felt charities should push for change if it helps meet needs. 41% felt they should respond to social and cultural debates.
Other key points
from the public survey:
- Following a post-pandemic rise last year, overall trust in public institutions has fallen, in some cases sharply.
- Public trust in charities has dipped slightly from 64% in 2021 to 62% in 2022* but largely held up, relative to other institutions.
- Public expectations of charities remain consistent. These include:
- That a high proportion of charities’ money is used for charitable activity
- That charities are making the impact they promise to make
- That the way they go about making that impact is consistent with the spirit of ‘charity’
- That all charities uphold the reputation of charity in adhering to these
*Please note that we'd previously reported these statistics as 6.4% and 6.2%. This has now been corrected.
from the trustees' research:
- Charities are continuing to respond and adjust to the post-pandemic context.
- Trustees’ understanding of their role and responsibilities has not changed since 2020.
- Most trustees are aware of key responsibilities, but there are some gaps around decision making and financial oversight
- Most trustees continue to recognise the importance of taking public expectations into account and feel a collective responsibility to uphold the sector’s reputation.
- Trustees who regularly engage with the Commission and use its guidance are more likely to understand their responsibilities correctly (but currently this is only about 30% of trustees).
You can explore the details of the research on the Commission’s website.
Civil Society News has also covered the research Smaller charities more satisfied with the Commission than larger ones.
Comment from the Charity Commission’s new Chair, Orlando Fraser
The Charity Commission’s new Chair Orlando Fraser published a comment piece in the Daily Telegraph, Charities must show prudence to retain trust during crisis ahead – “the voluntary sector needs to be able to justify every penny spent at a time of cost-of-living pressures”.
Drawing together the economic context and the Commission’s latest research on trust, he says:
“ 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.
“The latest findings of our regular research show that trust in the sector has largely held up over the last year…. 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.”
