Share

Government changes mean companies won’t have to report on charitable giving

Government changes mean companies won’t have to report on charitable giving
News

Government changes mean companies won’t have to report on charitable giving

Fundraising | Celina Ribeiro | 22 Jul 2013

The government is to remove regulations which require some companies to report on their charitable donations, arguing that such reportage is a burden and does not improve giving levels.

Regulations within the Companies Act 2006 which ask that companies declare charitable donations worth more than £2,000 are to be dropped following a motion passed in the House of Lords last week. The Directory of Social Change, which compiles annual data on company giving, has blasted the move, arguing that stronger – not less – company reporting on giving is necessary.

Putting forward the motion, Viscount Younger of Leckie, said: “While we encourage companies to engage in philanthropy, we have no evidence that this disclosure affects charitable giving while the disclosure itself has become burdensome to business.”

Pressed on what exactly was burdensome about the reportage, the Conservative peer said that companies will still outline their total charitable donations, but reporting on each donation, to which charity and for which purpose, was onerous for companies which practise a lot of philanthropy.

Contrary to BIS consultation on corporate reporting

The development would appear at odds with a consultation put forward by the Department for Business, Innovation and Skills just a few weeks ago which asked for thoughts on how companies can be encouraged to report more accurately on their giving, and how to encourage more corporate philanthropy. The BIS document went so far as to suggest a standardised form of reportage for corporate social responsibility.

The changes to the Companies Act 2006 report come into effect on 1 October, soon after the deadline for submissions to the BIS consultation and before the Department is expected to report.

Jay Kennedy, DSC director of policy and research, heavily criticised the removal of the Companies Act regulations.

“Yet again we see our government acting in the interests of big business and not the public interest,” he said.

“The information available at present is paltry and generally appallingly presented – we know because we have been researching it for 25 years. The widespread lack of transparency and rigour already makes it difficult to get an accurate and robust picture of what companies do to meet their social responsibilities.

“The coalition is choosing to further obscure the picture, not make it clearer.” 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Age UK spends £1.8m in latest round of redundancies

21 Oct 2014

Age UK spent £1.81m on 120 redundancies in 2014, on top of £1.17m last year, as part of a review of...

CTG calls for VAT rebate scheme and gift aid reform to be part of Autumn Statement

20 Oct 2014

The Charity Tax Group is urging the government to improve the VAT system for charities in its Autumn Statement,...

BeatBullying to go into administration due to financial difficulties

20 Oct 2014

BeatBullying will go into administration after suffering “significant financial difficulties”, the...

Age UK spends £1.8m in latest round of redundancies

21 Oct 2014

Age UK spent £1.81m on 120 redundancies in 2014, on top of £1.17m last year, as part of a review of...

Addaction and KCA merge to become leading provider of recovery services

21 Oct 2014

Addiction charities Addaction and KCA will merge next year to form what is likely to be one of the 90...

Voluntary sector sees “revolving door” of staff, says report

20 Oct 2014

The voluntary sector is experiencing a “revolving door” of staff with employee turnover levels at...

Blackbaud launches online giving platform for individual fundraisers

17 Oct 2014

Blackbaud has launched its online giving platform, everydayhero, for fundraisers in the UK in a bid to...

Don't dismiss social media 'slacktivists', fundraisers told at IFC

16 Oct 2014

Charities should embrace and love charity ‘slacktivists’ because social is a great ramp for new donors,...

Nesta has made no grants to charities from its Impact Investments Fund

16 Oct 2014

Only 15 per cent of applications to a Nesta fund to invest in innovations to help older people, children...

Join the discussion

Twitter button

@CSFundraising