# Unprofessional leadership erodes charity ambition

- Link: https://fundraising.co.uk/2009/05/08/unprofessional-leadership-erodes-charity-ambition/
- Published: 2009-05-08T14:24:56+01:00
- Author: Howard Lake

London, UK – Britain’s charities need to get serious about effective leadership 
according to a new report by London-based charity consultancy and think tank, New
Philanthropy Capital.

 

The UK’s charity sector consists of 170,000 charities and has an income of £33bn,
managing assets of £86bn. It employs over 600,000 people meaning there are more 
charity workers than full-time teachers in England and Wales.

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The report, Board matters: a review of charity trusteeship in the UK, looks at governance
in the voluntary sector and concludes that recruitment, training and evaluation 
of board members is frequently under-resourced and ill-managed.

 

‘We’ve seen the high cost of poor governance in the commercial sector and the charity
sector needs to take heed,’ says Eleanor Stringer, co-author of the report. ‘Charities
are part and parcel of UK life and to allow haphazard governance is potentially 
very damaging, especially in these difficult times.’

 

According to NPC, the role of a trustee is as central to a charity’s success as 
a director is to a business.

 

The report notes that recruitment of new trustees is getting harder and nearly half
of all UK charities have vacancies on their board. Added to this, very few charities
undertake performance reviews. The report also critiques the lack of diversity, 
noting that nearly half of all trustees are aged over 60.

 

‘Charities deserve the best people with the best skills,’ says report co-author 
Belinda Vernon. ‘If the government is serious about promoting volunteering it could
consider giving employees time off to undertake voluntary tasks such as being a 
trustee,’ she added.

 

NPC estimates there are around 820,000 trustees of registered charities in the UK,
but spending on governance by charities themselves remains low. Last year almost
half of all charity boards received no training.

 

NPC is urging people to volunteer to sit on charity boards to encourage diversity
of skills in the sector, that new trustees receive good inductions and for boards
to be evaluated.

 

– ENDS –

 

For further information about NPC, its research reports and charity recommendations,
or to arrange an interview please contact:

Email: me***@*****************al.org Tel: +44 (0)207 785 6317 M: 07932 688 431 or
M: 0789 6150396

 

### Notes to Editors:

 

1. In order to get an understanding of the situation on the ground, NPC consulted
with around 50 people who have experience of being or working with trustees, including:

 

• public bodies, such as the Charity Commission;

 

• third sector umbrella bodies;

 

• charity chief executives;

 

• trustees of charities;

 

• trusts and foundations; and

 

• organisations (such as law firms) providing services to trustee boards.

 

The research focused on trustees of operational voluntary sector charities, not 
on trustees

of grant-making charities, nor on school governors.

 

2. Case Studies of good boards

 

Cancer Research UK is the largest fundraising charity in UK, formed by the merger
of the Cancer Research Campaign and the Imperial Cancer Research Fund in 2002.

 

To ensure a healthy turnover and a mix of experiences, trustees have a term limit
of three years, with the expectation of a second three-year term and the possibility
of a third. The chair is limited to two terms of three years. Each trustee is formally
appraised once in each three-year term, which forms part of the process leading 
to the decision on whether the board will recommend to the members that a trustee
should be reappointed.

 

Trustees also have annual one-to-one meetings with the chief executive and with 
the chair. If a trustee attends fewer than two thirds of board and relevant committee
meetings in a year, the individual will meet with the chair to discuss his or her
attendance record and overall commitment.

Email: li********@********rg.uk

 

Edinburgh Cyrenians is a charity tackling homelessness in Scotland. It has grown
significantly over the past ten years. The board recognised and planned for this
growth, and realised it affected the trustees’ role. When the charity only had 12
staff, the board had to be quite involved with running the organisation, by supporting
the staff and management. As the charity grew, the board needed to step back and
be able to delegate more responsibility to staff, and begin to focus more on its
governance role and the charity’s strategic direction. Working with the director,
the chair encouraged the board to invest in the organisation’s infrastructure, building
staff capability, and led the board in understanding its changing role. This improvement
included the board reviewing its own performance.

Email: De*****@***********rg.uk Tel: 0131 475 2354

 

3. Emilie Goodall, 27, is one of a new breed of young trustees. She is a trustee
of the Lucy Faithfull Foundation, a child protection charity. Email: EG******@*******
ne.org

 

4. New Philanthropy Capital (NPC) is a consultancy and a charity think tank that
enables donors and charities to do good, better. Set up seven years ago, NPC’s team
of consultants and analysts have built a wealth of experience in analysing charities;
understanding social issues; and providing expert advice to a variety of donors,
their advisors and, more recently, charities. NPC’s approach has been adopted by
countries in far afield as Brazil, Canada, Estonia and Israel. With partners, including
the Bertelsmann Foundation in Germany and the Hewlett Foundation in the USA, NPC
is helping to build an infrastructure to enable donors and charities to make good
decisions and create the greatest impact through their work.

 

For further information see:

 

www.philanthropycapital.org.

 

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