4 December 2013
The Charity Commission accepts and endorses the recommendations of the National Audit Office (NAO). Indeed many are already being implemented, and the new Board has been giving the changes its firm backing. We recognise our approach to tackling problems in charities has been too cautious at times, especially where there is a suspicion of deliberate abuse. We also recognise the need to use and analyse our own data more effectively.
However the NAO did not review many areas of our core responsibilities: holding charities to account through the public register of charities; guidance for charities, professionals and the public on the legal and accounting framework; giving legal permissions and consents; or our partnership work to improve standards of governance in charities. The Commission considers this essential work, critical to preventing abuse and to driving public trust and confidence, and required by our statutory objectives. We do not therefore believe the NAO's conclusions on the effectiveness of our regulation and value for money as a whole are justified by the evidence.
We welcome the NAO's acknowledgement that our expertise and independence are highly valued, and recognition that the Commission's resources have been reduced by 40% since 2007, with a further reduction to come in 2015/16.
Sam Younger, Chief Executive of the Charity Commission, said:
"I recognise what the NAO report says about the need for improvement in registrations and our compliance and investigations work, and we have already made progress in implementing their recommendations. I agree that we must sharpen our approach to handling the most serious cases that involve deliberate abuse or mismanagement of a charity. Such cases seriously undermine public trust in charities generally, and as regulator, we must identify and handle them effectively. We must also make better use of our own data to drive proactive work.
The Charity Commission has complex tasks - as registrar, enabler and tackler of abuse in a large, diverse and almost entirely voluntary sector. The challenge before us is to identify which areas of activity should be reduced further to free up the extra resources to meet the NAO's recommendations on registrations and investigations. I would also welcome a wider debate about the implications of the report for the Commission's priorities and approach."
The Commission is committed to an urgent programme of reform, building on the last strategic review and our current strengths. The Commission has already taken steps to improve our approach to tackling the most serious cases of abuse and mismanagement in charities, including:
Stepping up our serious case work - during the six months from April 2013, we opened 26 statutory inquiries (in comparison, during the twelve months 2012-13, we opened 15 inquiries);
Changing our approach to gathering information during statutory inquiries - we now routinely use our powers to direct charities to provide information, rather than requesting the voluntary release of information first;
Investigating and using legal powers against charities that have repeatedly defaulted on their reporting requirements;
Establishing a new dedicated operational monitoring team, which promotes compliance by conducting follow-up work with charities;
Agreeing a new Memorandum of Understanding with HMRC, which updates our existing regime of information exchange and makes a renewed commitment to ensuring necessary safeguards are in place that allow effective investigation and the exchange of information.
Ends
PR 56/13
Notes to Editor
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The Charity Commission is the independent regulator of charities in England and Wales. See www.charitycommission.gov.uk for further information.
Our mission is to be the independent registrar and regulator of charities in England and Wales, acting in the public's interest, to ensure that:
Charities know what they have to do
The public know what charities do
Charities are held to account
The National Audit Office published its reports The Regulatory Effectiveness of the Charity Commission and The Cup Trust on 4 December 2013.
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