Our weekly round up of news and updates from across the sector

Charity Commission

Chief Executive speech

See here for the transcript of Helen Stephenson's opening speech at the ICAEW Charity Conference last week, in which she reflects on the role of the Commission, finance and public confidence in the sector. In particular, she spoke about the 'culture wars' affecting charities, advising "laser-sharp focus" on core charitable purposes to navigate these waters.

Research into public trust and confidence

The Commission has published an overview of their research over the last decade into public views, trust and confidence in the charity sector, and how trustees see their responsibilities in charity governance. Some key takeaways are:

  • Public trust in charities is stabilising, after a drop in 2018.
  • Trust differs based on personal circumstance, including social and economic background, and area.
  • Responsible use of funds is the most important contributing factor to public trust.
  • Trustee views largely align with public views.
  • There are key gaps in a significant minority of trustees' understanding of their responsibilities.

Tax and VAT

Figures from a 2023 Charities Aid Foundation survey show that charities are missing out on as much as £560m a year in Gift Aid due to 'low donor uptake' as only 55% of donors claimed Gift Aid. The Charities Aid Foundation is urging people to tick the Gift Aid box and provides tips in the press release on how to make the most from donations.

Sector General

Involving young people in policy research

NPC has published a report with the Health Foundation providing practical recommendations for organisations wishing to engage young people in their policy research and development activities.

At the Labour and Civil Society Summit on 22 January, Keir Starmer spoke about his vision for an overhauled partnership with the third sector. He called civil society "essential" to growing the economy and pledged to "reset" the relationship between government and charities if the Labour party is elected. He criticised the current Conservative government's approach to charities, saying "the Tory Party is undertaking a kind of weird McCarthyism, trying to find woke agendas in the very civic institutions they once regarded with respect".

Governance

The Charity Investment Governance Principles project will explore best practice in decision-making around charity investments, drawing on the experiences of charities across England and Wales. The principles will reflect the outcomes of the high-profile Butler-Sloss case of 2022 and will complement the Charity Commission's recently updated CC14 guidance and the Charity Governance Code. The principles are expected to be published in summer 2024. Charity trustees and leaders, and those organisations with an interest in investment governance, are invited to register their interest to engage with the project by completing this short form.

Diversity and inclusion

Estimated figures from the Department for Culture, Media and Sport show that the proportion of disabled charity sector workers has increased to almost 25%, and the proportion of women also increased to 67.5%. Civil Society comments on these figures in this article.

Fundraising

We flagged a couple of weeks ago that OSCR has published guidance on the Israel-Gaza conflict for Scottish charities. In this post, Bates Wells Suhan Rajkumar, discusses the permissive approach of OSCR, suggesting that charities can arrange one-off collections at an event in aid of people impacted by the Israel-Gaza crisis, even where that doesn't fall within the charity's own objects.

Fundraising Preference Service

The Fundraising Regulator (FR) has flagged that the number of charities not accessing requests to suppress people on their marketing databases has almost doubled in five months. In August 2023, the regulator reported that 35 requests had not been read by 22 charities. This has now almost doubled to 61 requests not being accessed by 43 charities as of 1 January 2024.

Legacies

STEP reports the probate application procedure has been revised in England and Wales.

Fundraising regulator investigation into Inside Success Union CIC

Inside Success Union CIC (ISU) is a community interest company (CIC) which describes itself as a social enterprise working with 16-24 year olds to create a digital interactive magazine which develops life skills and employment. This is the second investigation by the FR into ISU's practices and in this investigation the FR has not received any response or acknowledgement of receipt from ISU. Therefore, its conclusions are based on evidence provided by the complainants and not on any defences or evidence provided by ISU. The CIC sells magazines and the FR received complaints involving recurring themes such as: the vendors obstructing people's paths or shopfronts, soliciting donations, using pressurised fundraising techniques to get people to increase donations and engaging in charitable fundraising activities without the necessary licences. As a CIC, ISU is not a charity. There is an allegation that one of the vendors stated that it was a charity when asking for a 'contribution'.

The FR found that the company had breached the Code in relation to:

  • Conducting fundraising activities legally and transparently with appropriate permissions: the FR stated that it could not establish that ISU was solely engaged in selling magazines. It relied on the evidence in the complaints to conclude that ISU vendors were conducting street fundraising activities without the necessary licences and permissions and therefore breached this code provision.
  • The prohibition on misleading donors and pressuring them unduly to donate: the FR relied on evidence from the complainants that they had been led to believe it was a charity and had been pressured to donate or make a 'one-off contribution'.
  • Complaints handling: the FR found no evidence of ISU attempting to investigate or respond to the complaints.
  • Learning from complaints: ISU has not followed the FR's previous recommendations or applied the lessons learned from the complaints the FR presented to it.

The FR flags that Code standards about fundraisers positioning themselves too close to shop fronts and ATMs and not wearing appropriate ID apply only to those collecting monthly Direct Debits, rather than one off donations. ISU therefore does not have to comply with these as Code provisions. However, it is considered good practice to follow those standards regardless of the type of fundraising activity carried out.

The FR is clearly concerned about ISU's practices and has convened a meeting of stakeholders including the Office of the Regulator of Community Interest Companies, local authorities, the Metropolitan Police, City of London Police, British Transport Police and the Chartered Institute of Fundraising. This meeting revealed a widespread concern that ISU is fundraising and/or street trading without appropriate licences and permissions and its staff are acting in a way that is pressurising and in clear breach of the Code. One local authority has successfully taken legal action against ISU relating to carrying out unlicensed street collection, resulting in a fine and an order to pay victim surcharge and costs. Under s.63 of the Charities Act 1992 it is a criminal offence for a person to represent that an institution is a registered charity, when soliciting money or other property, if it is not in fact a registered charity. The FR case report does not mention whether the police are investigating this aspect.

Bates Wells Hannah Lyons comments, "This investigation raises interesting questions about the Fundraising Regulator's remit. ISU is a CIC, not a charity or non-profit, and was selling magazine subscriptions on the street rather than soliciting donations. It is unclear if the Fundraising Regulator intervened because complainants said that they were led to believe it was a charity, or if it deduced that the street vendors were undertaking 'fundraising' under the Code ('to ask for money or other property for charitable, benevolent or philanthropic purposes'). Clearly organisations that are not charities but are otherwise soliciting funds or other support from the public need to be mindful of the Code and potential Fundraising Regulator investigations."

Data protection

Consultation on AI guidance

The Information Commissioner's Office (ICO) has launched a consultation series on generative AI, looking at how aspects of data protection law should apply to the development and use of the technology. The first consultation will look at when it is lawful to train generative AI models on personal data scraped from the web and is open until 1 March 2024.

ICO fines

The ICO has fined financial services company LADH Limited £50,000 for sending over 31,000 text messages without consent, in breach of the Privacy and Electronic Communications Regulations. The ICO has also served the company with an enforcement notice to stop sending marketing messages without valid consent.

The ICO has fined two home improvement companies a total of £250,000 for making illegal marketing calls. Both companies made unsolicited marketing calls to people registered with the Telephone Preference Service, while withholding their identity. Poxell Ltd made over 2.6 million unlawful calls, including to people with dementia and other serious illnesses, some from a 'very aggressive' salesperson. Both companies have also received enforcement notices and the ICO has issued advice for members of the public when dealing with such situations, including reporting to the ICO's online nuisance calls reporting tool.

Health data

GP practices have submitted a number of Data Protection Impact Assessments (DPIAs) over recent weeks to the ICO, in relation to the Accelerated Access to GP Records (AAGPR) program developed by NHS England. That programme is a method for individuals to obtain their medical records from GPs. The ICO has made the content of its response publicly available, as the DPIAs submitted have been largely similar. One of the high risks that has been identified by GP practices includes 'risk to resources', including GPs having to spend additional time explaining terminology to patients, reviewing correspondence from secondary care and making redactions prior to filing the information. The ICO has responded that these risks are operational risks concerning the allocation of resources, rather than data privacy risks which would infringe the data protection legislation. Therefore, this does not meet the conditions for the ICO to provide further advice on the risks. Overall the ICO is currently satisfied that the data protection risks posed by the AAGPR programme can be sufficiently mitigated, without GP practices breaching their NHS GP contract and it is supportive of the AAGPR's easy access to prospective records for individuals, for reasons of transparency, fairness and accuracy.

The ICO has updated its opinion on age assurance for the Children's code. The code is a statutory code of practice, setting out how internet society services likely to be accessed by children should protect children's information rights. Age assurance describes tools or approaches that help estimate or assess a child's age and allow services to be tailored to their needs, or access restricted where appropriate. The ICO's opinion was last published in October 2021 and has been updated, following research, engagement with focus groups & key stakeholders and a call for evidence. It has also engaged with Ofcom to ensure alignment between the age assurance requirements of the code and the Online Safety Act 2023.

Copyright

This government announcement details a consultation launched by the Intellectual Property Office on potential changes to copyright law. The changes might include how foreign record labels and foreign recording artists qualify for rights to be paid when their music is broadcast or played in public in the UK. The consultation is open until 11 March 2024.

Northern Ireland

CCNI is advising that the option to file accounts and reports voluntarily is coming to an end – 31 January 2024 will be the first mandatory deadline for charities registered prior to May 2019. This change comes as a result of The Charities Act (Northern Ireland) 2022.

Health and social care

See above under Data Protection.

An amendment to the Criminal Justice Bill will make it easier to prosecute sex in the presence of a child, by removing the requirement to prove that perpetrators knew, believed or intended that the child was aware. The government's press release also details funding which is being made available to charities to assist children who are victims of sexual abuse, including pre-trial support.

The Health and Social Care Secretary, Victoria Atkins, spoke at the Women's Health Summit to update on the Women's Health Strategy 2024 priorities. This includes a particular focus on maternity care, conditions such as endometriosis, access to contraception and support for domestic and sexual abuse victims.

Housing

The Regulator of Social Housing has published a letter sent to private registered providers concerning anticipated changes to its annual fees for 2024-25.

Social enterprise

The Schwab Foundation's Global Alliance for Social Entrepreneurship has published research into The State of Social Enterprise 2024, estimating that globally there are 10 million social enterprises (3% of all businesses), collectively generating US$2trn in annual revenues and creating over 200 million jobs (press release). In addition to noting a lack of legal recognition in many countries, the data indicates a US$1.1trn funding gap for the development of the sector. The data also notes that social innovators have reported harassment, discrimination, personal threats and political oppression linked to their work. Despite these challenges, the sector is estimated to be bigger than both the global apparel and advertising industries.

Inequality Inc. How corporate power divides our world and the need for a new era of public action. Oxfam has published a new report, coinciding with the gathering of the World Economic Forum at Davos, highlighting how corporate power magnifies economic and social inequalities (press release and executive summary). One of Oxfam's calls to action to reduce the gap is to create and promote a new generation of companies that do not put shareholders first, including worker cooperatives, social enterprises, and fair-trade businesses.

How can social enterprises transform the UK food system? Social Enterprise UK has published an article exploring the All-Party Parliamentary Group's discussion on social enterprise solutions to challenges in the UK food system.

The Office of the Regulator of Community Interest Companies has updated its application form for incorporating a CIC in relation to the information required regarding Directors signatures and email addresses.

Development finance

British International Investment (BII), the UK's development finance institution and impact investor, and the Asian Development Bank, the regional development bank for Asia and the Pacific, have announced a new partnership, a risk-sharing agreement, to finance up to US$100m of green trade transactions in the region. The arrangement will focus on renewable energy, energy efficiency and climate-smart agriculture to support the region's clean energy transition and climate resilience, particularly enabling the flow of green goods that can help regions to mitigate the impacts of climate change.

The Global Steering Group for Impact Investing (GSG) has announced that the World Economic Forum's Humanitarian and Resilience Investing Initiative has made significant progress toward mobilising US$10bn to enable 1,000 businesses in frontier markets to scale their operations by 2030. More than 40 organisations announced over 50 commitments to boost impact investment in frontier markets that are estimated to have the potential to unlock over US$15bn in commercial and catalytic capital. GSG comments on its involvement in the collaboration.

Culture and creative

The Guardian reports here on the recent US appeal court case where the judges held a Madrid museum has the right to retain a painting by Camille Pissarro that was stolen by the Nazis from a Jewish family. A key issue in the case, which had been brought in California, was whether Californian or Spanish law should apply. Following an earlier Supreme Court decision about conflicts of laws scenarios, the appeal court in this case found that Spanish law definitely applied. And under Spanish law the museum had gained title to the painting since it had purchased the work without knowing that it was stolen and had held it for six years, which was long enough to gain title through possession. The family has said it will appeal the decision.

Bates Wells Erica Crump comments, "Here in the UK, we have specific law regarding the return of Nazi looted art by our national museums, often under the recommendation of the Spoliation Advisory Panel. For charities, return of cultural artefacts will typically need Charity Commission approval unless the disposal is in furtherance of their charitable objects and within the powers of the charity. Given the current climate, many heritage organisations and charities are looking to update their restitution and repatriation policies. Trustees may want to consider voluntary restitution in some cases, often as part of a positive ongoing relationship with the recipient country or entity."

Education

Schools

The Local Government and Social Care Ombudsman has issued a report finding East Riding of Yorkshire Council at fault for failing to provide adequate reasons why an admissions appeal panel had rejected the defendant's appeal. School Admission Appeals Code requires an appeal panel's clerk to ensure that an accurate record is taken of hearings, including reasons for decisions at both stages of the appeal. It also requires the panel to communicate those reasons to the parties. In this case, whilst the clerk's notes did show consideration of the points raised by the defendant, this was not reflected in the decision letters, nor did those letters explain why the defendant's arguments were insufficient. It was agreed that the appeal would be reheard.

This Department for Education press release shows further support will soon be available for children with SEND, including:

  • Extension of the 'short breaks innovation programme', which provides activities for children with SEND such as cooking classes, theatre trips and craft workshops, to a further 7 local authorities.
  • Widening eligibility of the supported internships programme, which provides support for young people during the transition from education to paid employment.
  • Better support for those with Down syndrome.

A new report from Ofsted shows that more than 9 out of 10 local authorities struggle to find homes for children with complex needs, and that they can sometimes wait years. How local authorities and children's homes can achieve stability and permanence for children with complex needs emphasises this problem, highlights examples of common practice that resulted in good experiences for children with complex needs, and calls for greater strategic oversight over the children's residential sector to make sure children's needs are met.

Ofsted and the Department for Education have responded to HM Coroner's Regulation 28 prevention of future deaths report, following the suicide of headteacher Ruth Perry. The coroner found a number of concerns, to which Ofsted are aiming to respond robustly. This includes taking steps to ensure all headteachers feel supported during Ofsted inspection processes and have access to wellbeing support. See also this FE Week article.

Further Education

FE Week reports the government is planning a one-year pilot of simplifications to funding, audit and reporting in the next academic year. This is part of the Department for Education's wider plans to simplify and improve delivery of adult skills funding.

Higher Education

FE Week reports The Office for Students is awarding £12m in funding split between ten colleges and 41 universities, as part of its £40m degree apprenticeships expansion fund.

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