Sex abuse inquiry leaves charities facing significant costs and safeguarding review

12 Apr 2016 News

A child sex abuse inquiry and recent Charity Commission guidance mean all charities should review their safeguarding practices and some may face significant compliance costs, according to a recent round table discussion.

A child sex abuse inquiry and recent Charity Commission guidance mean all charities should review their safeguarding practices and some may face significant compliance costs, according to a recent round table discussion.

The meeting, which was convened by Charity Finance magazine and law firm Farrer & Co., heard how the Commission has placed increased emphasis on safeguarding as one of three high-impact strategic risks affecting charities, and is emphasising the need for good governance in this area.

This applies not just to the likes of care services or schools, but to any charities which come into contact with children and “adults at risk”, such as those running visitor attractions, charity shops or animal shelters.  

Ongoing inquiry

Meanwhile, the Goddard Inquiry (the Independent Inquiry into Child Sexual Abuse) was opened in July 2015 and "will consider the extent to which state and other non-state institutions in England and Wales have failed in their duty of care to protect children from sexual abuse and exploitation".

The Inquiry expressly includes within its focus voluntary, educational and religious organisations.

Adele Eastman, associate and child protection expert in Farrer & Co's Child Protection Unit, spoke at the event about the increased scrutiny to which institutions will be subject. She said the inquiry will conduct public hearings and some charities may be subjected to “Leveson-style examination”.

She added that a charity operating in a highly regulated area, for example education or residential care, will need to be ahead of the curve.

Sam Monaghan, corporate director children’s services (England) at Barnardo’s, told the group that organisations should be creating a culture where people take the responsibility to ask questions. He added that “safeguarding needs to be on everyone’s agenda”.

He also talked of the costs associated with the Goddard inquiry. He said: “There will be an impact in terms of cost, and while not wanting to minimise the inquiry’s importance, that cost will be very significant.”

Concerns for independent schools

Another attendee was Professor Mark Bailey, who is high master at St Paul’s School. His organisation had to deal with allegations of abuse two years ago, and has since carried out a wholesale review of its safeguarding regime.

He warned of the costs associated with enhanced levels of compliance, saying that aside from any legal fees, some independent schools will need to fund the appointment of an extra 3.5 members of staff for compliance, recruitment and training on safeguarding.

This could add as much as £200,000 a year onto their salary bills, meaning that the “cost of fees and compliance for smaller charities could threaten their existence”.

Bailey also suggested that regulatory guidance is changing the relationship between the executive and board by requiring trustees to be more active in supervising safeguarding.

“Charities don’t generally recruit trustees for their safeguarding expertise, and how much time does a trustee have to dedicate to this?

“This could result in the outsourcing of safeguarding information gathering and scrutiny, yet trustees are supposed to be taking full responsibility themselves.”

You can read the full roundtable report here

More on