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New charities not training or supporting trustees 1

Governance | Niki May Young | 10 Nov 2011

The Charity Commission has urged charities to invest in their trustees as its latest survey reveals that 40 per cent of applicants to the charity register offer no training or support to their board members.

In its first new ‘registration bulletin’ the Commission revealed that from April to September 2011 inclusive more than 3,000 charities joined the register. A survey of these applicants, which received 119 responses, revealed that over a third (39 per cent) were looking to recruit one or more trustees, but that 40 per cent offered no training or support to new trustees. Fundraising was highlighted as the main area charities felt trustees lacked knowledge and expertise (38 per cent of respondents), followed by charity law and regulation (21 per cent) and strategic planning and business development (12.6 per cent).

Some 56 per cent advised their trustee recruitment was done internally by drawing on existing staff, volunteers or members. The level of nepotism is also revealed with 48 per cent admitting to recruiting via personal connections.

While 60 per cent of respondents sought to recruit trustees from diverse backgrounds, such as black and minority ethnic groups, disabled people, young people, refugees and asylum seekers, Sam Younger, chief executive of the Charity Commission called for charities to expand their trustee recruitment:

“The survey findings highlight the importance of our guidance to trustees in helping new charities get off to a good start. While there is plenty of evidence of forward thinking, we would like to see these new charities recruiting more widely and offering new trustees more training and support. When starting out as a charity, it is essential to have strong governance arrangements in place. These are the foundations upon which successful charities are built.”

A positive outlook

Of the 3,000 charities that joined the register 713 provided their gross annual income as recorded in their latest published accounts, with a total annual income of these charities reaching £500m. Of the respondents to the survey, 97 per cent were either very confident or quite confident that their organisation would be able to fund its work over the next few years.

Younger welcomed this positive outlook: “This first registration bulletin offers a unique insight into the range and profile of organisations that have recently joined the register of charities. In spite of the bleak economic backdrop, and significant retrenchment in government spending, about 500 new charities are being set up every month – and they are optimistic about the future.”

Growth in service providing charities

The registration analysis showed that there has been a growth in the relative number of charities providing services joining the register. Some 59 per cent of the latest registered charities provide services compared to 34 per cent of the full register.

Over half of newly registered charities work in education or training, a quarter work towards the prevention or relief of poverty and a quarter are engaged in religious activities. A third also have 'general charitable purposes'. This represents little variation from the wider register, however the number of new charities working in the advancement of health or saving lives at 23 per cent is 8 per cent higher than the wider register at 15 per cent. The percentage of new charities working in amateur sport reduced compared to the wider register by 6 per cent to 14 per cent.

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Who's Who: Sam Younger