The Scottish charity regulator has told charities that its role is to regulate and not mediate disputes within charities.
In a blog published last week, OSCR said that its role is to ensure that trustees make their decisions in line with their duties and governing documents, “not to police disagreements about the decisions that charities take”.
Earlier this month, the regulator published an inquiry policy that clarifies the matters it can act on and the steps it will take after receiving a concern.
OSCR did so after revealing that between April 2022 and March 2023 it received 634 concerns about Scottish charities, with around 65% being about matters it cannot deal with because “they fall outside what the law says we can do”.
Meanwhile, the regulator recently published a new corporate strategy, which sets out five key priorities on how it will regulate and support charities to deliver their services over the next three years.
‘Our role is not to police disagreements’
Martin Tyson, OSCR’s head of regulation and improvement, said that a lot of “unhappy” people and organisations contact the regulator about decisions charities made without having contacted the charity or its trustees first.
He wrote: “Despite a feeling of collective ownership, it is charity trustees who have the right and the duty to make decisions in the interest of their charities and in line with their governing documents. Charities have a right to be unpopular and to do unpopular things and do sometimes make mistakes.
“It is not OSCR’s place to get involved in differences of opinion. Our role as a regulator is to ensure that trustees make their decisions in line with their trustee duties and their governing documents, not to police disagreements about the decisions that charities take.”
‘We shouldn’t tar honest mistake with same regulatory brush’
Tyson said that OSCR will “seek to punish wrongdoing”, but that it is in “no one’s interest to tar an honest mistake with the same regulatory brush as a charity or trustee who wilfully and knowingly breaks the law”.
“When charities or trustees make a mistake, OSCR’s role as an enabling regulator is to support the organisation and the wider sector to ensure that matters are put right, and lessons are learned for the future. Human beings all make mistakes, and we believe that human beings who run charities are no different.”
He advised trustees to engage openly “about what they are doing with the communities, beneficiary groups and stakeholders” and be “as transparent as possible about their reasons for taking decisions they are taking”.
“While we fully understand how difficult these situations can be for trustees, our experience is that openness is usually the best policy.”
Trustees should manage and accommodate opinion differences
Tyson added: “OSCR may still get involved in disputes like these where our risk assessment indicates there may be misconduct or charitable assets are at risk. But everyone involved needs to be clear that OSCR’s role is not to mediate disputes, and anyone expecting us simply to pick a side and intervene on their behalf will be disappointed.
“We expect charity trustees to be able to manage and accommodate differences of opinion and disagreement as part of running a charity. Our colleagues in England and Wales recently emphasised the need for charity trustees to show ‘goodwill and commitment, and a willingness to compromise their position’. We agree. We know that charity trustees are motivated by a strong commitment to their charities, but the ability to work together in difficult times and sometimes to set aside strong feelings or views can be key ways of acting in the interests of a charity.”
New strategy
In its new strategy, OSCR said that it will continue to be a “modern, forward-thinking regulator” while ensuring charities continue to retain the confidence of the Scottish public.
It set out five main priorities, which include:
• Ensuring the public has access to the information they need about Scottish charities and how they are regulated.
• Providing charities with the tools and guidance they need to meet regulatory obligations.
• Delivering smart, responsive and effective regulation that positively impacts on Scotland’s charity sector and its beneficiaries.
• Focusing on its people and having a motivated, flexible and well-supported workforce.
• Maintaining a focus on best value, continuous improvement and collaboration.
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