File accounts on time to avoid missing out on donations, says Charity Commission
Howard Lake | 10 December 2013 | News
Charities that do not file their financial accounts and returns with the Charity Commission on time could risk putting off would-be donors. Research commissioned by the charity regulator and the Fundraising Standards Board (FRSB) has found that 76% of adults would not donate to a charity which had failed to submit its annual return on time, now they knew about the Commission’s Register.
The finding from research by ICM is particularly relevant in the run-up to Christmas and the many seasonal fundraising appeals that charities undertake. According to the research, 85% of people give directly to charity at Christmas, donating an average of around £40.
Charities’ profile on the Register
A charity’s profile on the Charity Commission’s Register is one of the best ways of showing that it remains accountable and transparent to the public. The profile confirms that it is a legitimate registered charity.
If a charity does not submit its account and returns on time, then its profile will feature a red flag indicating it is late. Not surprisingly this sends a warning signal to potential donors.
What checks do donors make before giving?
The research asked donors what kind of checks they made before making a charitable donation.
Advertisement
- 39% of donors ask collectors for identification or question them about the organisation
- 27% of donors check that it is a registered charity
- 20% of respondents (excluding Scotland) always or mostly check for the FRSB ‘give with confidence’ tick branding, which indicates that the charity’s fundraising is regulated.
- respondents aged 18-24 and over 65 are least likely to make checks before donating, with 49% and 46% respectively failing to do so.
- the most popular ways of giving at Christmas time are purchasing Christmas cards and other goods (64%), cash collections (53%), raffles and lotteries (44%) and bag/household goods collections (43%).
- Women make more checks than men, with 30% of female respondents checking for a registered charity number when approached. Just 24% of men do so.
- Men give an average of £52 directly to charities at Christmas time, with women donating an average of £27.
Once informed of the various ways in which donors can check up on charities, 67% of respondents said they were likely to make checks before giving again.
The research found that 43% of adults never make any checks when approached by a collector for a charitable donation, so late-filing charities still have some donors to rely on.
Tackling late filing
However, the Charity Commission is tackling charities that do not file on time. In September 2013, it opened a class inquiry into charities that are defaulting on their statutory obligations to meet reporting requirements by failing to file their annual documents for two or more years in the last five years.
Sam Younger, Chief Executive of the Charity Commission, said:
“We will not tolerate charities that fail to meet reporting requirements, and our enforcement action continues to target these breaches of duty… Charities should be aware that potential donors are checking their details, and we are encouraging those donors not to give to charities that send in their accounts late.”
Alistair McLean, Chief Executive of the Fundraising Standards Board, added:
“Although bogus fundraising remains rare, it is essential that we all do what we can to make it increasingly difficult for criminals to cheat charities and their supporters. For donors, this means being aware and, if in doubt, making a few simple checks before giving”.
He added further that people should not be deterred from giving.
[message_box title=”About the survey” color=”blue”]ICM interviewed a random sample of 1162 adults aged 18+ via telephone in the UK between 22 November and 24 November 2013. Surveys were conducted across the country and the results have been weighted to the profile of all adults.[/message_box]
Image: Overdue by Jason Winter on Shutterstock.com
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.