Charities must stop “hounding vulnerable people”, the chair of the Charity Commission, William Shawcross said today at the regulator's public meeting in Southampton.
“It cannot be right for vulnerable people, older people, generous people, to be hounded, on the telephone, through the letter box or in the street,” he said.
His speech coincides with the issuing of new guidance by the regulator for trustees, to “ensure their fundraising practice fits with the values which accompany charitable status”.
The chair of the regulator said that “clouds” had gathered over the sector in the past year – which to date “remain undissipated”.
“The media spotlight became fixed upon charities and this is will with us… after the tragic case of Olive Cooke and the awful spectacle that was the collapse of Kids Company,” he said.
But to blame the media for attacks on the charity sector would be “missing the point”, Shawcross said.
“The impact of revelations of the last year have been felt so strongly because they struck a chord with the public. The stories found a receptive audience who thought in recent years that perhaps some charities had allowed their values to become obscured as they adopted the sharp practices of industry… The impact of all this has been to knock public trust and confidence.”
Charities must fund regulator
Shawcross repeated concerns made at last year’s annual general meeting about cuts to the regulator’s funding – cuts that have forced the reduction in staff numbers from 600 to 300.
“The Commission’s budget has been reduced by 50 per cent in recent years,” he said. “This naturally limits what we can do when regulating those million trustees and their undertaking of nearly £70bn.
“Adequate and stable funding of the commission is, I believe, the only way we can achieve an appropriate level of resource to regulate effectively.”
Shawcross also repeated calls for a new model of funding for the regulator – funded by charities – but allayed fears that smaller charities would struggle to pay the regulatory tariffs.
“We will be consulting on the concept of asking charities to contribute to their regulator. This is common in other sectors, such as energy or the media,” he said. “Any moves must of course not hit small charities and we would only seek contribution from larger charities.”
Although, Shawcross said he expected “some resistance” to the plans, he was “confident” that charities would “understand that they will only continue to enjoy public support if the public has confidence that charities are well regulated”.
“I call all of you here, and all beyond this place, to engage with the consultation and help us design a sound and fair system.”
Shawcross said he “very pleased” with the new powers granted to the regulator in the Charities Bill last month.
“We have been vested by Parliament on behalf of the people and we will use them responsibly,” he said.
