The chief executive of the Charity Commission has raised concerns about the dilution of the charity brand.
Speaking to delegates at the CFDG annual conference yesterday, Sam Younger said that there was increasingly a “blend between private, government, charity and social enterprise organisations” providing public sector services.
He added: “I have an anxiety that the currency of what a charity is, is being devalued.
“I'm not talking in terms of discouraging organisations from becoming charities, but being clearer what category they belong to.”
The Commission does not have any formal policy on the subject of the categorisation of charities.
Peer review
Younger used the session to announce that the Commission was looking to set up a peer-review programme where professionals would go into a charity to assess an issue and then feed back to the charity and the Commission.
He said: “We are looking to do some pilots using umbrella bodies and identifying charities to work with.”
Less advice to individual charities
The Commission wants to encourage more “self-reliance” in the sector and offer less individual advice to charities.
Richard Bray, finance regulatory and taxes manager at Cancer Research UK challenged Younger on the Commission’s decision to reduce the amount of individual advice it provides, suggesting it consider charging a fee for such advice.
He argued: “I value the advice received from the Charity Commission, and regret having to go to advisers, because they come with a cost but also because it's better to go to the horse’s mouth as they tend to give you a better answer.”
However, in response Younger said: “In the fullness of time this is something we could consider, but in all honesty it would not solve the financial issue.”
Registration thresholds
Younger added that when the Charities Act is reviewed by Parliament later this year, “it is worth looking at what registration really means”.
A proposal for tighter registration rules came out of the Charity Commission strategic review at the end of last year but the registration rules were laid out by the 2006 Act and not something the Commission has the power to change.
