# Too many charities can not recruit trustees

- Link: https://fundraising.co.uk/2018/05/08/many-charities-can-not-recruit-trustees/
- Published: 2018-05-08T13:28:03+01:00
- Author: Howard Lake

**What began as a nagging problem with charities’ ability to recruit trustees has
steadily morphed into a full-blown crisis.**

The most recent available figures – from November 2017 – showed there were 100,000
unfilled charity trustee vacancies.

By January this year, some 74% of charities were reporting difficulties hiring the
trustees they needed.

## Advertisement

Despite widespread media reports that public confidence in charities as a whole 
has plunged in the wake of the scandals at [Kids Company](https://fundraising.co.uk/2016/02/01/mps-report-kids-company-collapse-blames-trustees-regulators-government-auditors/),
[Oxfam](https://fundraising.co.uk/2018/02/12/oxfams-deputy-chief-executive-resigns-staff-behaviour-haiti-chad/)
and [Save the Children](https://fundraising.co.uk/2018/04/11/charity-commission-opens-statutory-inquiry-save-children/),
Britons’ willingness to fundraise – and donate – remains strong.

This year’s London Marathon wasn’t just the biggest and hottest in the race’s 38-
year history – it also saw a [record amount raised](https://fundraising.co.uk/2018/04/25/london-marathon-round/)
for more than 2,000 charities.

Virgin Money Giving said after the event that £21.8m had been raised for good causes
through its platform with the final amount raised expected to be £25m. Meanwhile,
JustGiving said a further £22.3m had been raised through its platform.

Yet competition between charities is intense; for donations, for volunteers and 
for trustees. In many ways, having the right trustees is the key to attracting the
donations and volunteers needed for the organisation to thrive.

 

## Trustee checklist

It’s imperative that charities have a strong board of trustees equipped with the
right skills and experience to enable them to raise funds, but also to ensure donations
are used effectively and, of course, correctly.

There is not only a legal obligation but also a moral obligation for charities to
use the funds they receive in the correct way.

But the raft of legal obligations imposed on those willing to give up their free
time to become a trustee can be daunting.

Trustees need to be aware of not only the Charities Act, 2011 but also the Charities(
Protection and Social Investment) Act, 2016, the Charities Act, 1992 and now General
Data Protection Regulations (GDPR).

Trustees are also now being warned they need to take out indemnity insurance, as
well as being cautioned of the need to retain legal counsel separate from that of
the charity.

And while the general public may not have been put off charitable giving by the 
Kids Company and Oxfam scandals, it’s increasingly clear that potential trustees
have.

One charity with whom we work at HW Fisher & Company has been trying to recruit 
a new chair of trustees for nearly two months, through recruitment sites such as
Charity Job and and Charity Trustee Network.

But in all that time it has only had two applications, and both were from wholly
unsuitable candidates. The charity in question has subsequently been forced to recruit
the services of a headhunter – an expense it can ill afford.

Such reticence among potential trustees is a consequence of the raft of new legislation
introduced since 2011, as well as the lack of clarity over the role the Charity 
Commission plays – and the unresolved question of whether it exists solely to regulate,
or also to promote – the not-for- profit sector.

The Commission’s newly appointed chair, Baroness Stowell, has raised the issue of
public trust twice already: once in front of MPs in a pre-appointment hearing and
then again in her [first substantive speech](https://fundraising.co.uk/2018/04/17/baroness-stowells-first-major-speech-charity-commission-chair-calls-rebuilding-public-trust/)
as chair to the National Council of Voluntary Organisations’ (NCVO) annual conference
earlier this month.

While it is important to highlight declining public trust in charities, doing so
of course runs the risk of becoming a self-fulfilling prophecy. Talking down the
charities sector will surely only put off potential, well-qualified trustees.

In the same speech Baroness Stowell gave a glimpse, perhaps, of the attitude of 
the Commission to those it works with. She said: “The Commission’s job is not to
represent charities to the public, but to represent the public interest to you”.

This is, or at least should be, only partly true. If the Commission does not help
to represent charities to the public, the crisis in recruiting trustees is certain
to get worse.

But government funding of the Charity Commission is, at least for now, geared towards
regulation. As a result, much of the Commission’s work focuses on enforcement.

And some of the requirements placed on charities – and by extension their auditors–
could be described as onerous. Particularly, new whistleblowing obligations placed
on charity auditors that have the potential to put then in a very awkward position
with their clients.

Meanwhile, there is less government funding available for training potential trustees
about the role they are undertaking. As a result many new trustees risk embarking
on the job without a full appreciation of the importance of their position.

There are, of course, specialists such as HW Fisher & Company that can help bridge
the training gap. But for small charities that are already operating on a shoestring
this may not always be an option.

Ultimately, without a greater focus on recruitment and training of trustees there
will be some charities that fail.

And if there is not a concerted effort to help charities maintain standards of governance,
more are likely to fall foul of the Charity Commission’s rules and even the law.
That will surely only help to erode public trust in charities further.

_**Neal Gilmore** is charities principal at the chartered accountants [HW Fisher & Company](https://www.hwfisher.co.uk/)._

 * **[Reach Volunteering awarded £300,000 to help charities with trustee recruitment](https://fundraising.co.uk/2018/05/10/reach-volunteering-awarded-300000-help-charities-trustee-recruitment/)**(
   10 May 2018)
 * **[How wills can be challenged and how charities can manage legacy disputes](https://fundraising.co.uk/2019/09/18/how-wills-can-be-challenged-and-how-charities-can-manage-legacy-disputes/)**(
   18 September 2019)
 * **[Programme launches to get more women from ethnic minority backgrounds onto charity boards](https://fundraising.co.uk/2019/10/02/programme-launches-to-get-more-women-from-ethnic-minority-backgrounds-on-charity-boards/)**(
   2 October 2019)

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