Sam Younger, outgoing chief executive of the Charity Commission, has delivered his last speech in the role, where he warns that “not all of the charities we register make an impact” and says the regulator is “being set up to fail”.
Younger told an audience of charity practitioners this week that a “vibrant, diverse and dynamic” charity sector had been created by people identifying a new need or new way of addressing an existing need.
But he continued with a caveat. “The Commission’s experience is that many people set up a new charity without making sure they have identified an unaddressed need or found an innovative solution; without making an honest effort to establish whether another charity is already doing similar work, “ he said.
“The result is duplication, inefficiency and, sadly, too many charities that are not managed well enough. As charities compete for resources and face ever greater scrutiny, I think we should be bolder in saying: not all of the charities the Commission registers end up making an impact.”
Younger said people should consider carefully before setting up a new charity – by asking themselves what difference they will make by creating a new organisation.
Younger’s comments reflect recommendations recently made by the ICAEW who has called for a change in the law to allow the Charity Commission to refuse a charity registration when a similar charity already exists.
Public expect transparency
In his final speech as chief executive of the Commission, Younger also urged charities to respond to public expectations by being transparent and accountable.
“In all areas of life, the public expects access to more, and more accessible, data. Trustees need to respond to that. Trustees should ask themselves: ‘what do our donors, our beneficiaries; our partners expect to know about our work?'
“Organisations – and charities are no exception here – sometimes fear that revealing too much exposes them to risk, for example to the risk that the information may be misinterpreted or misused. My experience is that the occasions where this is indeed the greatest risk are relatively rare. Failing to be transparent, allowing speculation to build, is often the greater risk, especially in the long term," he said.
“Commission is being set up to fail”
Younger also spoke of his concerns for the future of the regulator:
“The Commission is not adequately funded and needs appropriate powers. As I prepare to leave the organisation I have led for four years, this is what worries me most. I do not worry about the strategic focus of the board or the commitment of staff.
“I worry that the Commission is being set up to fail because it is simply not given the tools it needs to do the job expected of it. And the reason I worry about this is that perceived failures by the Commission affect the charities we are tasked with regulating.
“I don’t want to see public trust in charities decline or the quality of charity management suffer. I’m sure the government doesn’t want that either. So I urge the government to act and I urge charities themselves to speak out in support of a strong, adequately resourced regulator."
In February, Lord Wallace of Saltaire, a Liberal Democrat peer and a government whip in the Lords, said the government will look “very carefully” at whether there is a need for more funding for the Charity Commission.
William Shawcross, chair of the Commission, has also recently called for more funding and powers for the regulator.
Younger will leave the Charity Commission next month, to be succeeded by Paula Sussex. He is currently in a new part-time role at the Advertising Standards Authority, where he is one of three independent members on its 13-strong council that decides whether advertisements have breached the advertising codes.
