Amid concerns that some relationships between charities
and non-charities have damaged public confidence in
charity, the Charity Commission has today published
new guidance.
The Commission says its casework has identified
examples where charities have not managed their links
to non-charitable organisations with care, in some
cases allowing charities to be misused to further
non-charitable interests, including commercial or
private interests.
The regulator recognises that many charities work
successfully in close partnership with a wide variety
of non-charitable organisations, such as trading
subsidiaries. These relationships can be crucial in
helping a charity deliver on its mission for the public
benefit.
The new guidance aims to help charities reap the
benefits of such relationships while managing the risks
carefully.
The Commission says the guidance will also allow it,
and the public, to better hold charities to account
against existing rules.
The new guidance does not set out new rules or
regulations, but draws together relevant law and
practice in setting out six principles to help trustees
ensure their arrangements for working with a linked
body secure the charity’s interests and independence.
Helen Stephenson, CEO of the Charity Commission, said:
As regulator, we want charities to thrive and inspire
trust, and we know relationships with non-charitable
organisations can help a charity deliver on its
purposes. But operating alongside other organisations
should always be well-considered and trustees must
manage the risks that can arise carefully, and with
probity.
Charities hold special status in society and the
public rightly have high expectations of them,
including that they are driven only by their
charitable mission and purpose and that they work to
defend and promote their independence from
non-charitable organisations at all times.
No charity should ever use or be used by
non-charitable organisations to pursue uncharitable
interests.
The guidance is available on gov.uk and
includes an infographic and checklist to help trustees
check and review their approach.
