Charity Commission Annual Public Meeting 2022: highlights

Last month, in front of a live and virtual audience, the Charity Commission held its Annual Public Meeting in Cardiff. The meeting brought together key speakers from within the Commission who provided an update on the Commission’s recent work and explored some of the major themes currently running through the third sector.

In this article, we reflect on the areas of emphasis the Commission’s spokespeople highlighted, and the areas under the Commission’s regulatory spotlight as it looks towards 2023.

Introduction by Orlando Fraser, Chair of the Charity Commission

The meeting was opened by the Commission’s new chair, Orlando Fraser, who was appointed in April 2022. Mr Fraser has been a practising commercial barrister for 30 years and was appointed to the Queen’s Counsel (as was) in 2014.

“A time of change and challenge”

Mr Fraser opened the meeting reflecting on the recent changes in our society and the profound challenges those within the third sector will face as the cost of living crisis continues. He also highlighted the commitment and kind service which Her Majesty, Queen Elizabeth II, showed throughout her reign, remarking upon her service as Royal Patron or President of over 600 organisations.

Notably, Mr Fraser stressed the role that the Commission has to play whilst “grim financial conditions engulf us”. He reminded the audience that the Commission is an expert Commission – it is there to provide guidance but it is also there to scrutinise charities. As such, on the part of trustees, he stressed the duty of prudence and the need for sound financial stewardship to be demonstrated in the months ahead. When reflecting inwardly about the Commission, Mr Fraser highlighted his intention that the Commission during his chairmanship will be fair, balanced and independent – his aim is that it will be “best in class” not only in terms of the people it recruits, but in the technology it uses and the work it carries out.

“Beholden to no-one” – the Commission, charities and politics

In the context of growing commentary as to the role charities have to play in the political arena, Mr Fraser reflected upon his expectation that charities should be involved in the conversations being had. He noted that the law is clear on how charities may become involved in political activity, they do have power to campaign and they should shine a light on uncomfortable truths. His view was that ultimately, throughout our history, charities have brought about a vast amount of social change by doing more than simply “dabbling” in politics.

However, Mr Fraser did remark that charity trustees should nevertheless tread a careful line here. Charities are not to stray into party politics and he stressed that a charity’s campaigning must always be in furtherance of its purposes. Notably, Mr Fraser reminded the audience that, even when political activity aligns with a charity’s purposes, the trustees must ensure that going ahead with said activity is the prudent thing to do. This is especially so in light of the turbulent economic circumstances many charities, and their beneficiaries, are experiencing.

In order to assist charity trustees in navigating the political climate, the Charity Commission has published a new 5 minute guide: Political Activity and Campaigning by Charities. The guidance outlines the rules for charities to follow should they wish to support or oppose a change in government policy or the law. Its release marks the 7th instalment of the Commission’s 5 minute guides for charity trustees.

When it came to the Commission itself, and the interplay (if any) that the Commission has with politics, Mr Fraser delivered a clear message: the Commission is independent “of party politicians, of government, interest groups, of the media and of the sector itself.” Whilst the Commission reports into Parliament, Mr Fraser underlined that “in enforcing charity law, we will be beholden to no-one, and nothing, but the law itself”.

Charities and Statistics – the year 2021 to 2022

• The Commission supported 31,393 charities and took 74,878 calls (14,000 more than the previous year)
• Over £25million was released back into the sector via the Commission’s revitalisation project (more on this below)
• Registered charities (some 160,000) recorded a combined income of over £80 billion
• 3,454 serious incident reports were made
• 45 statutory inquiries were undertaken

Your Charity and Your Account

As part of its pledge to use technology more effectively and to become a more directly involved regulator, a new service – the “My Account” service for trustees – will be released over the next 12-24 months.

Helen Stephenson CBE, the Commission’s chief executive, introduced the new trustee portal account and explained that it is intended that the new platform will enable trustees to keep better track of the charities they are trustees of, any outstanding filings they have and what services are available to them. There will also be a personalised inbox function. The platform will be promoted to charity trustees gradually, and will be available on the Commission’s online portal for trustees to use.

Orlando Fraser commented that the portal account will be available to all charity trustees in England and Wales (some 700,000 or so), and should “revolutionise the trustee experience, especially in tailoring regulatory guidance on all matters to the individual”.

The Commission will be contacting charities about this new service directly. Trustees therefore do not need to take any action themselves as the project is going to be “Commission-led”. However, the Commission has requested that charities ensure that their key contact details are up-to-date and correct. This is crucial as the Commission will be using those contact details to implement this service going forward. To check your details are correct, log into the online filing portal for your charity.

The Commission’s Revitalising Trusts Programme

The Commission confirmed its Revitalising Trusts Programme continues to be effective, and reported that over the last year, some £25 million from inactive or dormant trusts has been “unlocked” and released back into the sector.

The initiative was started in 2019 in England when the Commission, in partnership with UK Community Foundations, sought to help charities who were struggling to spend their income on the public benefit (for example by being unable to identify beneficiaries to receive the funds or by having outdated or overly restrictive charitable objects). Through its partnership with UK Community Foundations, the programme enables charitable funds to be distributed to community foundations to help support local charities and provide a vital boost to local causes.

The programme has assisted a number of dormant charities to release funds, often by transferring assets to charities with similar charitable purposes, and has now reached a new milestone in Wales with £1 million revitalised since its launch in April 2021. To date, the programme has revitalised a total of £80 million.

The Commission has urged any charity struggling to spend its income in the last five years to get in touch to see if the programme might be suitable for them.

Conclusion

The meeting itself touched upon a number of topics and themes, some of which are beyond the scope of this article. However, should charity trustees wish to watch a recording of the introduction by Orlando Fraser and speech from Helen Stephenson CBE, they are able to do so here.

The meeting takes place annually and provides a chance for trustees and attendees to ask questions of the Commission – we would recommend that trustees attend the meeting in the future and keep an eye out for updates from the Commission as they are released.

The Birketts View

A number of different topics were covered at this year’s Annual Public Meeting, however the discussions surrounding political involvement arguably stand out the most.

Despite the uncertainty within the realm of politics at this time, Orlando Fraser’s points surrounding the ability of charities to legitimately campaign and carry out political activity are particularly relevant and important for charity trustees to bear in mind in the current climate.

Should charities wish to undertake any political activity which is in line with their charitable purposes, the Commission is there to support them, and as Mr Fraser touched upon, there are various resources open to trustees to assist them in their work.

CC9 Speaking Out: Guidance on Campaigning and Political Activity by Charities provides a useful guide for trustees, as does the 5 minute guide referred to in the above. Trustees must also be mindful of the law, and in particular the interplay between electoral law and charity law. To help in this area, the Commission has also released a guidance note on Charities, Elections and Referendums as well as an MP Fact Sheet.

Trustees will need to bear in mind their duties towards their charities and beneficiaries, and be mindful of how their own actions or personal interests are handled when navigating a political subject. It is especially important for trustees to think through the interplay between their own actions and the reputation of their charity, ensuring that any conflicts are handled appropriately and, in the words of Mr Fraser, any campaigning or political activity remains firmly in the furtherance of a charity’s purposes.

The meeting provides a good reference point for trustees to use when thinking through the Commission’s areas of emphasis as we leave COVID-19 behind us and enter into a new landscape of political discussion and economic difficulty. In particular, charity trustees should be mindful of the Commission’s focus on the duty of prudence and the reminder that, whenever a charity is carrying out work, it does so with its charitable purposes and beneficiaries in mind.

If you would like further advice on any of the topics covered in this article, please do not hesitate to get in touch Liz Brownsell, Amy Bradburne or another member of the Birketts Charities Team.