The chief executive of the Charity Commission has cautioned foundations against forgetting their historical charitable objects when planning to modernise.
Speaking at the annual Association of Charitable Foundations conference in London yesterday, David Holdsworth said that foundations should not treat their charitable objects as “a historical curiosity” when looking to modernise.
He said foundations should instead view their objects as their “roots” and “a legal and moral axis upon which to navigate”.
“There’s a growing conversation – frankly what feels like a pressure – around modernising foundations, often described as democratising them,” Holdsworth said.
“Around ceding power to beneficiaries and communities, flattening hierarchies, and fundamentally restructuring how foundations are governed.
“This is, I know, grounded in a well-intentioned desire to continue to adapt to improve the very ecosystem around you to enable it to thrive.
“But I want to say something that might be unfashionable. Be very thoughtful before you give away all of your foundation’s power. Be very thoughtful in ensuring you grow new branches rather than damaging the very roots that enable you to weather the storms.
“And be there for not just today’s beneficiaries but tomorrow’s – and that would enable future generations to sit in the shade and enjoy the better future your canopy provided.
“I’m not suggesting foundations should be disconnected or indifferent. Quite the opposite. The best foundations are those that are engaged with their beneficiaries and deeply embedded in their communities.
“They consult widely, they listen carefully, and they design their work shaped by lived experience and genuine engagement with those they seek to help.”
Clarifying his comments, Holdsworth said the commission would not “stand in the way of considered changes” and that the regulator would “only intervene where there are legal or regulatory concerns, where charitable purposes have been forgotten or overlooked”.
He said: “This isn’t about looking back. It’s about looking inward. Recognising what your foundation represents. In some cases, change is necessary to remain relevant.
“Done right, you can honour intent even when adapting to necessary change. However, if change is a response to pressure, then stop and ask yourself: ‘Will it stay true to your charitable purpose? Will your choice stand years from now?’”
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