Whistleblowing disclosures to Charity Commission rise 72% in a year
Melanie May | 30 September 2024 | News
The Charity Commission received 561 whistleblowing disclosures between 1 April 2023 and 31 March 2024 – an increase of 72%, and the highest number of disclosures received within the last 9 years.
The Commission reports that 54% came from employees and ex-employees, with the primary issues raised being governance, safeguarding or financial management concerns, which are the same as in previous reporting periods. Reports regarding financial harms increased significantly to 128 compared to 62 last year, while those regarding safeguarding rose to 104, from 81.
The other types of issue raised in 2023 to 2024 include: conflicts of interest, disputes, reputational damage, GDPR breach, and public benefit.
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Education and training charities featured most, with 258 disclosures, followed by those focusing on the advancement of health / saving lives (131), and on general charitable purposes (127).
Other complaints rise
The Commission also notes that complaints received from members of the public about charities rose by 50% in the same period, from 2,086 in 2022/2023, to 3,131 in 2023/2024.
Matters of Material Significance reports by auditors and independent examiners rose by 10% (from 431 reports to 475 reports) and Reports of Serious Incidents (RSIs) from charity trustees rose by 5% in the same period (from 2,969 reports to 3,106).
Commission response
The Commission says that while the exact reasons for the uplift in complaints are unclear, the extra demand on charities caused by the challenging financial environment post-Covid and the impact of inflation and cost of living pressures on the sector, may be a contributing factor.
The Commission opened a case in response to 471 (84%) of the disclosures. The other 90 (16%) disclosures related to a charity which was already subject to an open case in the same period. At the end of the reporting period, 378 (80%) of the 471 cases were closed.
In 264 cases, following enquiries the Commission decided that it was not proportionate to take further action. Regulatory advice and guidance or an action plan was provided under section 15(2) of the Act to 115 charities, while information gathering powers were exercised in 35 cases, 16 were signposted to other regulators, and in 14 cases it was verified that trustees were dealing with the issue.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.