06/12/2018 15:07:43 January 2019 Plus: columns Sectorand investment News Interview: Alsina Deborah newly merged chief of The UK on her Cancer Bowel journey award-winning collaboration. greater towards See page 50 for charity directory suppliers’ methods for success methods for leading leading elephant showcases some simple showcases elephant by example by challenging in 2019, but the matriarch in 2019, but the matriarch challenging Charity leadership is set to be even more more be even Charity leadership is set to Investment: Tackling ESG Tackling ESG is crucial Embracing but what charity, any for good and defined as are bad practices? Technology: in 2019 Technology some of the key A look at transform to likely trends the charity space technology year. the coming over
revealed www.charitytimes.com The top 25 charity top The CEOs on social media Review: 2018 in the news Reputational scandals this year, news the dominated but regulatory intervention has set a new precedent. cover.indd 1 Leadership / Fundraising / Technology / Governance / Bowel Cancer UK interview / ESG January 2019 PROVIDING INSURANCE With a Personal Touch
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67923 Mercury_Personal Touch Ad_271x204.indd 1 30/11/2018 16:11 Editorial Comment
In this sector, reflection is essential
hat was the best thing to happen to you this year? And what Editor Lauren Weymouth was the worst?” a charity chief executive asked me at a recent [email protected] networking event. I couldn’t answer. Not because I didn’t 020 7562 2411 “W know her beyond our initial small talk, but because – much like the point she Contributing Writers was trying to make – I’d never really stopped to think about it. Caron Bradshaw, Peter Lewis, Gillian McKay, Maybe this year was full of sunshine, laughter and success for you. Maybe Antonia Swinson, Becky Slack, David Adams, it was a year you’d really just rather forget. Either way, as a new year Louise Thomson, Daniel Chan, Antony Savvas approaches, it’s a great opportunity to reflect on all that’s happened – and not Design & Production in a ‘new year, new me’ kind of way. Matt Mills This year, the charity sector has changed tremendously. As you will read [email protected] in our review of the key news stories from 2018 (p.20), the sector is under 020 7562 2406 more scrutiny than ever before, whilst simultaneously expected to thrive both Commercial Manager digitally and financially. It certainly doesn’t seem like 2019 will be any lighter Linda Libetta on the pressure, either. [email protected] 020 7562 2431 But whilst the year may have been a little difficult for some, it has also been a year of huge success for others. As our technology outlook reveals Subscriptions (p.31), some charities are showcasing the same level of digital innovation [email protected] 01635 588 861 used at some of the world’s largest companies. For those that don’t have the same kind of funds to spend, innovation is being shown in smaller, but Subscription Rates (6 issues pa) £79pa registered charities equally powerful ways. £119pa rest of UK, £127pa EU At the same time, charities are increasingly looking to advance their £132pa elsewhere overall mission through the investment of their assets. As you’ll read in our
Printed by Buxton Press investment focus (p.40), there is a heightened focus on ESG among trustee All rights reserved. The views expressed boards and the charities invested in ‘unethical’ asset classes are now few and are not necessarily those of the publishers. far between. ISSN : 1355-4573 So in the midst of listening to Wham! on repeat and hailing ‘sod it, it’s Christmas’ to every pub invitation, don’t forget to take some time to reflect Published by Perspective Publishing on all that you’ve achieved. 6th Floor, 3 London Wall Buildings Take the time to read the news. Look at what other charities are doing London EC2M 5PD right – and indeed what other charities are doing wrong – and use those www.perspectivepublishing.com opportunities to learn, grow and develop. For now, on behalf of everyone at Charity Times, I’d like to wish you Managing Director John Woods all a happy and safe Christmas and a wonderful New Year.
Publishing Director Mark Evans
Lauren Weymouth, Editor
Average net circulation of 8,500 copies for July 15 – June 16
www.charitytimes.com 03
editorial-comment.indd 1 07/12/2018 11:28:40 In this issue Contents
December/January 2019 23 17
06
News & views
Regulars
07 News 10 Appointments
Columns 12 Brexit by Caron Bradshaw 14 Equality by Peter Lewis Cover story Interview 15 Volunteering by Gillian McKay 16 Property 23 Leadership 17 Deborah Alsina by Antonia Swinson Charity leadership is expected to The chief executive of Bowel Cancer be even more challenging in 2019, UK talks to David Adams about her Charity Services but there are some simple methods award-winning journey towards 50 Suppliers Directory for success. greater collaboration.
04 www.charitytimes.com
contents.indd 2 07/12/2018 11:31:18 In this issue Contents
20 39 37
Outlook
27 Fundraising agenda 2019 The past few years have been a huge challenge for fundraisers. Will 2019 be lighter on the chaos?
Investment 31 Technology agenda 2019 Review A look at the key trends likely to dominate the technology space this coming year. 20 2018 in the news 42 Tackling ESG A look at some of the biggest Embracing ESG is crucial for 36 Governance agenda 2019 charity sector stories to have hit any charity, but what can be defined After another tumultuous year in the headlines over the past 12 as good and bad practices? Paul the charity sector, governance months. Fairbrother explores. still demands much attention.
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contents.indd 3 06/12/2018 17:43:53 News in brief
about their charity’s finances’. The research revealed that of 106 “There charities with an income of over is an ‘incomplete £500,000, the vast majority included a reference to their reserves policy in understanding’ of what their annual reports. reserves actually are, which could lead trustees to ‘make uk’s first digital code of practice launches for charities poor decisions about their The UK’s first Charity Digital Code charity’s finances’. of Practice has been launched, providing charities with practical advice on incorporating technology into their work. The Code, which has connections” between the two been funded by Lloyds Banking charities as “substantial” payments Group and the Co-op Foundation and between the two were evident from managed by a steering group of bank statements. representatives from across the sector, is voluntary and free to access for all dogs trust ceo passes away charities. A need for the Code was Dogs Trust CEO, Adrian Burder, has govt to issue £1m in funding recognised following the Lloyds passed away unexpectedly following for charity digital skills Bank UK Business Digital Index a short illness. Burder worked at The government has announced it 2017, which showed only 48 per cent Dogs Trust for over 20 years. He was will issue grants worth £1 million to of charities have full basic digital formerly marketing director for the fund support programmes that will skills, and 50 per cent of charity charity and has been CEO since help charities improve their digital leaders lack confidence in introducing November 2014. Jim Monteith is the skills. The funding, launched by digital change. acting CEO. “Adrian was one of a Jeremy Wright, Secretary of State for kind – his passion for animal welfare Digital, Culture, Media and Sport, regulator investigates changed the lives of millions of dogs follows the government’s launch of connected charities over in the 24 years he was at Dogs its new Civil Society Strategy, which financial mismanagement Trust,” Monteith said. “He will be set out plans to help charities in The Charity Commission has opened terribly missed by staff, trustees and growing their digital confidence. an inquiry into two connected volunteers past and present and we Wright said training provided through charities following concerns about are so grateful for his immeasurable the Digital Leadership Fund, will ‘financial irregularities’. The two contribution to making the world a help charities to better develop an charities involved are Idaara Maarif- better place for man’s best friend.” understanding of how technology can E-Islam, which aims to advance and make it easier for them to achieve preserve Islam, and The Voice of supreme court rules against their goals. Truth, which prior to its closure, barnardo’s in ongoing pension sought to promote the benefit of battle large charities not accurately community and the Shia Muslim The Supreme Court has ruled against reporting reserves, charity faith. According to the regulator, it Barnardo’s in an ongoing legal battle commission finds has ‘concerns about financial to decide how the charity must Just under a quarter of larger charities irregularities’ linked to Gift Aid measure inflation with regards to its accurately report the level of financial claims involving both charities, as pension payments. Court judges ruled reserves they hold in their annual well as concerns around the charity would be required to report, a review by the Charity inconsistencies between the income calculate the rate of inflation for its Commission has revealed. According and expenditure reported in the pension payments from the retail to the regulator’s research, there is an accounts for The Voice of Truth price index (RPI), rather than by the ‘incomplete understanding’ of what for the year ending 31 March 2016. consumer price index, which is reserves actually are, which could The Charity Commission said its typically lower. The trustees of the lead trustees to ‘make poor decisions records show “significant Barnardo’s pension scheme – a closed
06 www.charitytimes.com
Nibs.indd 2 05/12/2018 17:42:22 News in brief
defined benefit scheme with a deficit based charity, Alternative Housing, in of £137.7m – previously argued they July 2017, shortly after The Guardian should be able to interpret a clause in reported the charity topped its list of their pension scheme trust deed in a the UK’s ‘most prosecuted landlords’. way that would allow them to use the The charity was established to Consumer Prices Index (CPI) as their help house those in need due to measure of inflation instead. their age, ill-health, disability, financial hardship or other tracey crouch resigns as disadvantage in Bristol. charities minister Charities minister Tracey Crouch has uk jumps back into top 10 caf resigned from her role due to a delay world giving indeX in changes to betting rules. The The UK is the sixth most generous minister for sport, civil society and country in the world when it comes loneliness, who is responsible for to charitable giving, a new report by wide range of cultural issues the Charities Aid Foundation has including charities, said it is with revealed. According to the latest CAF “great sadness” to have resigned from World Giving Index, the UK has “one of the best jobs in government”. climbed back into the top 10 this “Thank you so much for all the very year, up from 11th position in 2017. kind messages of support I have The report, which is based on a Safeguarding Summit in London in received throughout the day. survey of 150,000 people from 146 October, International Development Politicians come and go but countries around the world, measured Secretary Penny Mordaunt principles stay with us forever,” she how many people have donated to or announced that the Department for said on Twitter. volunteered for a charity, or helped a International Development and stranger in the past month. Interpol are to launch a pilot to halt two of uk’s largest breast the movement of sexual predators cancer charities to merge charity representatives to across agencies. Called Operation Breast Cancer Care and Breast take national citizen advice Soteria, after the Greek goddess of Cancer Now have announced plans board roles safety, the joint Interpol and UK to merge. The two leading breast Charity representatives are among government project will see specialist cancer charities will merge from ten board members appointed to teams deployed to Africa and Asia to April 2019, forming the ‘UK’s first run the royal charter body set up to strengthen criminal records checks comprehensive breast cancer charity’. run the National Citizen Service. and encourage information sharing. In a statement, Breast Cancer Care Among the new appointments made said the trustee boards of both by the Queen is Dame Julia charity commission raises charities believe that by uniting their Cleverdon, founder of volunteering concerns about low levels of shared ambition, “by 2050, everyone charity Step Up to Serve, which serious incident reporting who develops breast cancer will live, manages the #iwill campaign. Too many charities are still failing to and everyone receives the support Among others appointed to the board report serious safeguarding incidents, they need to live now”. “We can is Teach for Nigeria ambassador, the Charity Commission has warned. achieve more together than we can Ndidi Okezie. A report by the regulator’s interim apart,” the statement said. taskforce on safeguarding says that govt announces crackdown just 0.9% of charities reported a housing charity branded ‘most on eXploitation in aid sector safeguarding incident since 2014. prosecuted landlord’ closes The government has announced a Over the same period only 1.5% of A housing charity, which was package of measures to crackdown charities submitted any kind of branded the ‘UK’s most prosecuted on sexual predators working in serious incident report. The regulator landlord’ in a list compiled by The international aid charities, including a also found that only 44 charities were Guardian, has closed down. The joint project with Interpol to stop responsible for reporting more than Charity Commission has announced abusers moving between half (55%) of the total safeguarding it opened an inquiry into the Bristol- organisations. At the International incidents since 2014.
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Nibs.indd 3 05/12/2018 17:42:22 News Autumn Budget
hancellor Phillip Hammond What did the Autumn Budget bring Cdelivered his annual Autumn Budget statement in November this year. Here's for charities? a round-up of the major changes affecting charities: ChanCellor PhilliP hammond has delivered his highly- Taxes antiCiPated autumn Budget, But what did it have in store Among some of the main changes to for Charities? affect the charity sector, the government pledged to “reduce administrative Written by: lauren weymouth burdens on charities” by introducing a “package of measures” from April 2019. government is set to provide £15 million to charities and The Budget document revealed these others to distribute around 250 million meals’ worth of measures will help to increase the accessible edible food that is currently “needlessly wasted upper limit for trading that charities every year”. can carry out without incurring a tax Mental health also received a mention in the Chancellor’s liability from £5,000 to £8,000 where speech this year, with the government pledging to grow turnover is under £20,000 and from funding for mental health services as a share of the overall £50,000 to £80,000 where turnover NHS budget over the next five years. exceeds £200,000. However, dormant assets failed to make an appearance in Furthermore, they claim to allow the statement, despite many charities campaigning for more charity shops using the Retail Gift Aid funds to be released for charitable activity. Scheme to send letters to donors every The sector has long been waiting for an annoucement three years when their goods raise about how the government intends to further spend up less than £20 a year, rather than to £2bn in dormant assets, but are yet to receive any every tax year. further information. The package of measures is also Earlier this year, leaders from a number of charitable set to allow charities to increase the organisations, including the NCVO, ACEVO and the Small individual donation limit under the Gift Charities Coalition, wrote to Hammond asking for him to Aid Small Donations Scheme to £20, take "substantive action" on dormant assets as per the which applies to small collections government's intentions in its civil society strategy. where it is impractical to obtain a "We are calling for this funding to be designated for the Gift Aid declaration. purpose of strategic, long-term investment in civil society organisations," leaders wrote to the Chancellor. IR35 "There are a number of ways in which dormant assets The Chancellor has also announced the funding could be directed to support this long-term vision, extension of IR35 off-payroll working to including through investment in community ownership of the private sector has been put back land and buildings, endowments to community foundations, until 2020 and will only apply to large and strategic investment in skills and capacity building and medium sized businesses. around income generation and fundraising." The Charity Tax Group claim this delay will help charities "who need time The sector’s response adapting to these new requirements", but In a statement published on Twitter, the Small Charities CFG chief executive Caron Bradshaw Coalition said: “We’re disappointed that [the] Budget argued the amends will require thought included minimal mention of charities. The benefits of the as to how any changes will impact voluntary sector on society must be recognised. We’ll make charities such as theatre companies. sure we shout even louder for #smallbutvital charities over the next year.” Funding NCVO director of public policy and volunteering, Karl While announcements surrounding Wilding added: “A very political, populist budget. Straight funding for charities were minimal, the from the George Osborne playbook. Wonder if it will unravel Budget document revealed the as quickly as some of Osborne’s?”
08 www.charitytimes.com
NewsSpecial.indd 2 05/12/2018 13:54:50 Charity Diary
Diary dates 2019
The latest events occurring across the charity sector
SuStainability Summit tHE FutuRE OF CHaRity CHaRity timES awaRdS 2019 12 March 2019 2 May 2019 2 October 2019 The Waldorf Hilton, London The Waldorf Hilton, London Park Plaza Hotel, London The Sustainability Summit offers The Charity Times Annual Now in their 20th year, the Charity charities, pension funds, insurance Conference returns in 2019, at a Times Awards are free to enter and companies and corporates the time when the charity sector is busy reward excellence across almost opportunity to learn and network adapting to a rapid pace of change. 30 categories. The best individual alongside their peers at a key time Expectations around digital are charities will be recognised, for the sustainable investment increasing, while donors are looking alongside specific areas including industry. This one-day conference, for charities to pave the way towards community involvement, corporate now in its second year, is open to all greater social change. Annual reports partnerships, fundraising, those concerned with the investment need to be more transparent than ever campaigning, use of technology, of assets into this asset class, and before and charities need to have and many more. Shortlisted entries will offer delegates the up-to-date strong safeguarding systems in place will be evaluated by an independent knowledge and guidance they need to to stand a chance at survival. Join expert judging panel, and the winners help them understand all aspects of us to explore what the future has in announced at a black tie ceremony the sustainable market. store for the charity sector. on 2 October 2019. pensionsage.com/sustainability/ charitytimes.com/conference/ charitytimes.com/awards/
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bEttER SOCiEty awaRdS iOF FundRaiSing COnVEntiOn 23 May 2019 1-3 July 2019 London Marriot Hotel, Grosvenor Square, London The Barbican, London bettersociety.net/awards/ fundraisingconvention.uk/
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diarypagev2.indd 3 07/12/2018 11:32:15 Charity Appointments
People on the move...
The latest appointments from around the charity sector
mims davies lord toby harris Mims Davies has been appointed as The Fundraising Regulator has the new Minister for Sport and Civil appointed Labour peer Toby Harris as Society following Tracey Crouch’s its new chair, replacing existing chair resignation in November. Davies, who Lord Grade in January 2019. Lord is the MP for Eastleigh, will now take Harris, who was made a life peer in on the wide-range of responsibilities 1998, has worked across national, the role involves, including sport, regional and local organisations with If you have any appointments charities, horse racing, the National responsibility for policing and security, to announce please contact Lottery and society lotteries. The role consumer affairs, local government [email protected] also now involves work on loneliness. services and healthcare.
scott sanders stephen edwards luen thompson Scott Sanders, CEO of Linc-Cymru Stephen Edwards has been named Forget Me Not Children’s Hospice, Housing Association, has been as the new director of policy and which supports children with life- appointed chairman of the tobacco communications at Living Streets, shortening conditions and their control charity, ASH Wales. Sanders the UK charity for everyday walking. families across West Yorkshire and was appointed by the trustees in Edwards will join the charity in North Manchester, has appointed Luen recognition of his “excellent leadership December 2018, bringing a wealth of Thompson as the charity’s new chief skills and shared ambition to improve public affairs experience having spent executive. She had worked in the the quality of lives across Wales”. He 18 years advising organisations on charity sector for over 25 years, has over 20 years of experience in the their public relations and including senior positions at Barnardos housing and social care sectors. communications strategy. and NSPCC, as well as Carers Trust.
10 www.charitytimes.com
appointments.indd 2 05/12/2018 14:00:23 Charity Appointments
matthew reed ray locK hayley pannicK Marie Curie has appointed Matthew Ray Lock, a retired Royal Air Force pilot Imperial Health Charity has Reed as its new chief executive. Reed and commander, has been appointed appointed Hayley Pannick as director joins from The Children’s Society where as chair of Stoll, the organisation of development. Prior to this role, he has been chief executive for the last providing supported housing for Pannick spent four years as head seven years. Previously he was chief Veterans. Lock took up the role at of philanthropy at the Alzheimer’s executive of The Cystic Fibrosis Trust Stoll’s AGM on 29 November., Society. She also managed and marketing director at Christian succeeding the current chair, Air philanthropy and corporate Aid. From 2015 to 2016 he was also the Commodore Andy Fryer when he fundraising teams at The Prince’s independent chair of the Birmingham completes his term of office. Lock has a Trust after corporate finance at Commission on Child Poverty. service history spanning 35 years. Ernst & Young.
thomas lawson christine allen oliver reichardt Thomas Lawson has been appointed Catholic aid charity Cafod has Stillbirth and neonatal death charity, as chief executive of debt charity appointed Christine Allen as its next Sands, has appointed Oliver Reichardt Turn2us. Lawson was previously chief director. Allen was previously as its new chair of trustees. Reichardt executive at Leap Confronting Conflicy campaigns coordinator at Cafod replaces Angela McCafferty, who has since November 2010, prior to which between 1989 and 1991. She joins been acting chair since April 2018. He he spent three years as deputy chief from Christian Aid, where she was is the director of fellowship at the RSA executive of the human rights charity director of policy and public affairs. (Royal Society of Arts). He also sits on Prisoners Abroad. Lawson is also chair Before joining Christian Aid, she spent the Council of the National Trust, and is of the Centre for Youth Impact, 11 years as executive director of also a Trustee of sustainable transport measuring impact in the youth sector. Progressio, which closed last year. charity, Sustrans.
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appointments.indd 3 05/12/2018 14:00:26 CFG Column
Brexit
we need to lift our eyes from the Brexit paperwork
hey say a week in politics is a very long completely overshadowed by argument and time but I’m beginning to believe this counter argument on Brexit. Tshould be shortened to ‘a day’. I recently attended our special interest group During our CFG annual fundraising dinner, I for finance people in grant-making reflected on the two years since the referendum. organisations, at which a presentation was given Back in 2016, I said I didn’t think I had lived on data by 360Giving. One particular chart through a year that had troubled me more. stuck in my mind, produced by the Young Looking back, it’s as though history saw that as Foundation, which overlays the Brexit vote with a challenge, rolled up its metaphoric sleeves and disadvantage and charitable activity. It was clear said ‘hold my beer!’ that where need is not being met (and charities Whether it’s Trump pulling out of the Paris are not active), the people voted for change. We Climate deal, shocking natural or manmade ignore that at our peril. disasters, or the recent election victory of the far In the Budget, the end to austerity was Caron Bradshaw right in Brazil – life has been volatile and highly trumpeted, but those most likely to benefit from is Chief exeCutive worrying. And that’s without even mentioning that appear to be higher up ‘the food chain’. Of offiCer of the ‘B word’. Brexit has changed everything. course there were good things in it for those less CFG has said that as it currently stands, well off; such as increasing the national living the Charity Brexit will be bad for charity and bad for our wage. However, if the end to austerity does not finanCe Group beneficiaries. It looks like the sector is on mean improvements, targeting positive course to suffer all the downsides and enjoy intervention, including supporting social change none of the up. Even a no deal scenario could organisations, for those who feel left behind, be catastrophic for our sector. things won’t get better. Fear and hardship have been capitalised upon Communities are crying out for change. and exploited, supposedly to give a voice to the Charities and other social change organisations the forgotten and the disenfranchised. But in the should be actively seeking them out and last two years, it’s hard to see how things have co-creating answers to the questions being improved for these groups. Do they feel any asked of society. more listened to now than they did two years The Civil Society Futures inquiry, led by Julia ago? I think not. Unwin, issued its final report on 19th At the time of writing this, things have been November. In it, the inquiry argued: changing on a nearly a daily basis as we watch “Re-energised, civil society could be at the heart politicians from all sides of the Brexit debate of the changes we need in our society as whole: wrangle for position. What happens next is reviving our dented democracy, rebuilding our difficult to predict. Whether we crash out, stay social fabric and enabling us to address the in, have an election or a people’s vote, I really great challenges of climate change and haven’t a clue. But what I do know, is that the environmental degradation’ but that we won’t be sector has a role to play that shouldn’t be able to do this without changing ourselves.” entirely focussed on the outcome of the debate. One way in which I think we can positively We know one thing for certain – the 2016 change, is to lift our eyes from the Brexit referendum highlighted divide within the UK. paperwork and focus on our opportunities to Communities feel left behind, scared for the serve society as we are best placed to. I hope future and isolated. They feel voiceless and that in two years’ time, I can celebrate the acts disenfranchised. Whatever the economic fallout of our sector and the ways in which we have of whatever happens next, we will have learnt changed ourselves and society for the better; nothing if we do not stop and ask what we whatever the next days, weeks or months may should do to address this need that has been so bring. ■
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Columns.indd 2 05/12/2018 17:36:56 GALAPark Plaza DINNER Westminster & CEREMONYBridge, London
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CTawards201_savethedate.indd 1 07/12/2018 12:07:41 IoF Column
Equality
we need the whole Charity Community to help taCkle inequalities in this seCtor
e need to create lasting change to there is under-representation of BAME, make our sector more equal, diverse LGBT+, disabled people and men, with Wand inclusive. unequal progression for women fundraisers. The fundraising community simply doesn’t I’m excited to say that the Change Collective reflect the communities we serve or our is all about changing that, shifting the sector population; the fundraising profession is from the inside out. predominantly white and female, whilst in the The guiding objectives and activities of the top charities boards only 6.3% are from BAME movement are set out in the ‘Manifesto for backgrounds. We’ve known of the problem Change’, and the Change Collective, and from for a while, but it is now time to take action. this a full strategy will be developed by July Across the whole of the charity sector we can next year. But we can only do this with the help only deliver on our ambitions to truly achieve and support of the whole community. excellence by embracing equality, diversity and The Manifesto outlines objectives and peter lewis is inclusion together. activities the IoF will undertake, many of Chief exeCutive There are a multitude of policies, actions which require the support and buy-in from of the institute and behaviours that we need to change. the charity sector. Some things we, at the IoF, can lead as the We need the whole charity community and of fundraisinG membership organisation for the fundraising its full range of partners to join the journey too. community, but in some areas it’s a challenge That’s why I’m calling on the support of that will need the support of the whole charity chief executives and trustees, HR and finance sector to embrace. colleagues, funders and corporate partners, to We will need trustees, CEOs and HR work with us to tackle inequalities at all colleagues to support the changes we wish to levels within the fundraising community; to go see, lead and facilitate them. We need brave that extra mile and spend those extra resources individuals in the sector at all levels to agitate to deliver greater diversity within your for change; we need to support those agitators; fundraising teams and activities; to work and we need to come together as a movement continually to create inclusive environments to push for change. We need to drive that where everyone can be the right fit for your change together. fundraising teams; and you can then deliver The IoF has taken its first proper steps on our truly excellent fundraising for the benefit of the journey with the launch of our Manifesto for vital causes you serve. Change last month. We want all fundraisers and As a vital first step for the Change Collective, their allies to work together to make fundraising we need your support to assess the current a more equal, diverse and inclusive profession, make-up of the fundraising profession, better where everyone is the right fit. understand the barriers that exist within it, The Change Collective is a product of the and work out what we, and our members, thoughtful and inspiring conversations the IoF should prioritise to deliver a more inclusive has been having over the last nine months with and diverse fundraising community. the support of an expert advisory panel on Supporting the fundraising community to equality, diversity and inclusion, chaired by become more equal, diverse and inclusive is Sufina Ahmad. During this time, the group not just one of the biggest challenges facing has had difficult, honest, and wide-ranging the fundraising profession. It is one of the conversations that have created a solid biggest challenges for the whole charity foundation as we embark on this journey. sector. I hope you will join us on our journey. Most importantly, our conversations have I hope you will become one of the highlighted that, throughout the profession, #ChangeCollective. ■
14 www.charitytimes.com
Columns.indd 4 05/12/2018 17:36:57 ICAEW Column
Volunteering
without the free time Given By us all, this seCtor would not exist
hristmas is coming; the geese are getting January 2019, we will be doing this in fat and if statistics are anything to go by, many ways. Cin January our philanthropic generosity Firstly, we will continue to help link up will have increased in proportion with our charities looking for volunteers with those waist lines. wishing to volunteer through our volunteering The ICAEW’s volunteering website certainly website, www.volunteers.com. gets a lot of attention in January. January is the Furthermore, from January, ICAEW will month of New Year resolutions and it seems that be launching the Volunteering Community. a common one to make is the decision to go out Membership of this community is open to and volunteer for a charity. ICAEW members and non-members, so anyone It’s a great impulse – the 2015-2016 Civic who volunteers or sits on a trustee board Community Life Survey (the latest one to can join. have been written up) shows that 70% of Within the community, we will be launching respondents volunteered at least once in the new trustee training modules. They are Gillian mCkay last 12 months and 47% volunteered at least aimed at those new to being a trustee or those is the head of once a month. That is, of course, a great who wish to brush up on their skills and Charities and result and shows how much we all enjoy knowledge. contributing to community cohesion in some The modules contain six topic sections, voluntary way or another. which can be worked through at your own seCtor at Furthermore, the simple fact is that without pace, with an optional assessment at the end. volunteers, the charity community simply Those that decide to complete the modules the iCaew would not function. For a start, there are the will also receive a certificate of completion. leagues of individuals who sign up to volunteer The idea is to provide a basic understanding to support the wide range of activities that of what your legal obligations are as a trustee charities undertake, whether it is acting as and to explore how you may deal with these. carers, befrienders, advisors, sports coaches Membership will also provide UK-wide or gardeners. professional liability insurance for volunteering Then there are the thousands of trustee boards activities with a charity or other not for running charities. None but a handful of profit organisation. Again, this cover extends to charities pay their trustees, so the boards of our all members of the community, whether or not national sector are being run by those that they are ICAEW members. donate their time freely. Trusteeship takes time, For ICAEW members, it is a particularly focus and skill. useful way to address the ICAEW’s requirement Trustees need to dedicate time and energy to that all members must carry professional grapple with the responsibilities of becoming liability insurance, even for financial services a trustee, not just when they first take up this provided pro bono. role, but throughout their trusteeship. Charity Community members will also receive governance is an area that evolves and changes a regular newsletter on updates to charity in response to events in the charity and not for governance and volunteering issues. We profit environment and trustees need to remain really hope that this will be of value to those up to date with these changes. of us who give up our time to volunteer At the ICAEW, we want to provide as much with charities. support as possible to those that want to carry Without the free time given by us all, on this work. this sector would not exist and would We want to support not just our members, but not be providing the valuable services everyone who is thinking of volunteering. From that it delivers. ■
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Columns.indd 5 05/12/2018 17:36:57 EPF Column
Property
every charity undertakes financiaL PLanning, so why is ProPerty seen as an oPtionaL extra?
t is a bitterly cold winter’s afternoon, finance directors have responsibility for but luckily for me, I am at a roundtable premises. Every charity undertakes financial Iin the City of London’s warm Guild Hall, planning, so why is property often seen as an courtesy of City Bridge Trust. A senior group optional extra? of guests are discussing the findings of the Yet despite this, 68% of the London charities first London Charity Property Survey which we surveyed do not have a strategic property my organisation, the Ethical Property plan. Just over half (51%) say no-one with Foundation, recently published in partnership appropriate expertise is specifically responsible with the Charity Finance Group. It wasn’t a for property within their organisation – 9% large-scale study – just 138 CEOs and finance higher than the rest of England and Wales. directors – but covered every London borough Unsurprisingly therefore, 24% have experienced and social mission. and 19% anticipate they will experience Some issues were expected. Namely, the unforeseen property costs. But it was a shock antonia difficulty in sourcing funding for property and for our roundtable guests to see that 53% of swinson is the challenge of finding suitable premises now London charities surveyed do not report chief executive the full-on retreat of London’s local authorities regularly on property to trustees, compared to as charity landlords is underway. However, the 44% across the whole of England and Wales. of the ethicaL big difference between London and the rest of Why not? Are trustees not interested? ProPerty England and Wales is the shift to renting from More than half of London charities (51%) do commercial landlords – 40% compared to 33% not carry out regular risk assessments on their foundtion of charities we surveyed in England and Wales property, a significant 10% difference, as a whole. compared to the 61% of charities in the whole How are commercial landlords responding to of England and Wales that do. And staggeringly, the complex needs of this sector? We share 36% of London charities do not keep complete experiences of flexible home working and how records of the property they own or rent. One Cloud technology is creating big changes in solicitor present said he was asked, on average, charity management. The issue of course, is every 18 months for copies of the lease – by the that the vulnerable people we serve require same charity. appropriate premises. And what if charities Our survey indicates that there are vast are community bases, serving costly areas numbers of worried and stressed out Londoners such as Soho or Victoria? They can’t move in the voluntary sector, working to change the out to cheaper neighbourhoods. How could world for the better, in property that may or may the planning system and the London support them. Mayor’s office address the desperate need Outside, the dusk is falling and the City of for social workspaces? London’s tall buildings begin to wink, as lights As you might expect, property costs are a big are turned on in office floors, which crawl up issue for London charities, accounting for over into the sky. Except they don’t. Most floors of 20% of total expenditure for 16.5% of most of the office tower blocks are a dark void. respondents. Of those we surveyed, 28% of No one’s there. They’re empty properties, but charities consider property as a barrier to not for the likes of us. Instead, it’s a visual delivering their charitable objectives, with 20% representation of market economics and how citing a lack of affordable premises and 8% a our sector is now really going to have to wise lack of space. up and fight for space in our capital. Too few charities realise that property The first London Charity Property Matters management is part of financial management. Survey is available as a free download from the This should not be surprising given so many Ethical Property Foundation website. ■
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Columns.indd 6 05/12/2018 17:38:35 Profile Interview
Profile: Deborah Alsina
Filling the gaps Deborah alsina Mbe, chief executive of newly MergeD bowel cancer uK, talKs to DaviD aDaMs about eMbarKing on an awarD-winning journey to greater collaboration, all for a cause close to her heart.
eborah Alsina MBE, now the chief executive of Bowel Cancer UK, was Dsupposed to be an opera singer. She studied music at the University of East Anglia and at the Royal Guildhall School of Music in London, majoring in performance. But during her late teens, doubts started to set in. An interest in the developing world began with a visit to Kenya at the age of 18. “It was the start of an opening up of a different consciousness,” she says. “I became more interested in international relations and social injustice. Covent Garden dropped off the agenda.” She didn’t start working in the voluntary sector straight after graduation, but progressed through a series of jobs before becoming a fundraiser at Chatham House. Then, in 1996 she became a fundraiser at the Refugee Council. “It was just as the government was first making asylum seekers destitute and tabloids stopping. This was someone who’d always were starting to say: ‘Let’s get rid of these been fit [he was in his early 40s]. He was people, how dare they come here and ask for barely eating; and he had this cough that help’. That made me very cross.” wouldn’t go away.” Alsina stayed at the organisation for six years, Following their return home, Rogelio was before leaving to become deputy director of the given his diagnosis. “The next day he was on Panos Institute, which focuses on issues chemotherapy. It was a huge shock. For a while, affecting developing countries. At this stage, we say now, we lost the ability to dream – Alsina thought her future might involve because you just didn’t know what was going working abroad in the development/refugee to happen.” sector, but her life was about to be pushed in a The experience gave Alsina an insight into different direction. what every cancer patient and their family goes through following a diagnosis. “You’re putting close to home your loved ones in someone else’s hands; and In 2003, her husband Rogelio was diagnosed they’re speaking a language you don’t with leukaemia, two weeks after their wedding. understand,” she says. “He’d not been well. We went away for about a She is referring to technical, medical week after our wedding, to Scotland and he information, but in Rogelio’s case she found couldn’t walk up Arthur’s Seat without herself playing an advocacy role, because
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Profile.indd 3 05/12/2018 17:44:12 Profile Interview
although he is fluent in English, it is his second a silent killer language (he is Cuban) and he sometimes found That same year her father was diagnosed with it difficult, during his illness, to communicate bowel cancer. He died just six months later. with the doctors and nurses treating him. Alsina Researching the disease, Alsina discovered that was often the person who asked questions when it is the fourth most common cancer in the UK the bureaucracy governing the care her husband – more than a quarter of a million people in the was receiving didn’t make sense, or didn’t seem UK today have been diagnosed with it – and the to be operating as it should. second biggest killer among cancers in the Serious concerns about Rogelio’s future country, leading to about 16,000 deaths every hung over the family for the next few years, year. Yet she had barely heard of it. while the couple continued to bring up Alsina’s She looked up the two bowel cancer charities two small children from a previous marriage. that existed at the time, Beating Bowel Cancer, Thankfully, he is now in drug-controlled and Bowel Cancer UK; and contacted the latter, remission. But his illness effectively ended offering her services, initially on a pro bono Alsina’s plans to work abroad. basis. By June 2008, she was its director of Instead, she became a consultant, and for six services and strategy. Just over a year later, in years worked with a range of development and July 2009, she was appointed CEO. refugee-related charities, often on strategy, “I got sucked in,” she says. “I didn’t think I planning, communications and/or fundraising. could be as passionate about another cause as I In 2007, having worked with the Welsh was about refugees, but I was wrong.” For a Refugee Council as a consultant for two years, decade she has endured five hours of Alsina served as its interim CEO, enjoying the commuting, four days a week, travelling into experience so much that she began to consider a London from the home she and Rogelio share possible return to permanent employment. with their three children in the Cotswolds, to
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Profile.indd 4 05/12/2018 17:44:15 Profile Interview
The charity now undertakes four key “the charity suffereD froM ‘sMall activities: providing information and support services to patients; enabling and supporting charity-itis’: it was trying to Do research; campaigning for access to early too Much with too little” diagnosis and best practice treatment; and public education about the disease. It also runs work for that cause. training courses for health professionals. In 2009, the charity had just under 20 staff and an income of about £1 million. “The a tough environment charity suffered from what you might call The current fundraising environment is, Alsina ‘small charity-itis’: it was trying to do too says, “very tough”. The work of medical much with too little,” says Alsina. “It lacked charities has also been hampered by the impact people, strategy and skills. It had big ambitions, of politics on the NHS. “I understand but hadn’t put the building blocks in place to devolution, but four nations and four health deliver them.” policies is tricky,” says Alsina. “I sit on national As CEO, she launched a comprehensive health committees in different nations and I just change programme to create those foundations see the same conversations happening and think, and the charity went from strength to strength. ‘could we not just do it once?’ In 2016, it was named Charity of the Year for “In England, the restructuring of the NHS has the £1 million to £10 million category at the caused ongoing havoc. The arms’ length bodies Charity Times Awards. Awareness of the disease do not work well together. There is a lack of is undoubtedly greater now than was the case a transparency in decision-making. It causes decade ago. The charity has also supported a problems for the people who need care and it great deal of medical research, following work means that driving change is ridiculously hard with universities, scientific institutions and in a way it should not be. patients to identify critical research gaps. “There’s a lot of smoke and mirrors, because politicians want to show they are friends to the joining forces NHS. It’s great there’s a new funding Throughout this period, Bowel Cancer UK and settlement, but is there going to be enough Beating Bowel Cancer had continued to operate money? We already know there are gaps in separately, with the latter, slightly smaller training budgets.” charity, focused on care provision. Alsina says She is also concerned about the impacts that she had hoped for years that the two charities Brexit may have, on staffing in the NHS and on would eventually merge. In 2017, both boards the research needed to improve prevention, of trustees decided that a merger would indeed detection and treatment of bowel cancer. Above be the best way to serve their common cause. all, she says, politicians need to remember the The charities merged officially on New Year’s people who feel the impact of these decisions. Day 2018, but a long, complex transition “I speak to people who are dying every day,” process has continued throughout 2018, she says. “What’s most harrowing about that is including, during recent weeks, integration of its this is a disease that can be prevented, or cured. two completely separate databases. We are missing those opportunities because of a The new organisation is still relatively small, lack of investment and action. with an annual income of about £4 million and “I meet people, who are costing the NHS 60 staff, so it could not hire in outside help to thousands of pounds, because the disease wasn’t complete the transition; and it has continued to spotted early, and then you think about the cost deliver a full programme of work throughout to their families, the loss of employment, lost the year. Alsina’s own role in the charity’s taxes – it doesn’t make sense at all. We could success was acknowledged by another award, absolutely transform this. This is a health issue for Charity Principal of the Year. we can do something about.” ■
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Profile.indd 5 05/12/2018 17:44:15 Review News in 2018
review
ast year, Brexit dominated headlines. Reeling in from the Lwrath of the referendum, 2017 2018 in the news was very much a year of ifs and buts. Whilst 2018 has not been any What were the biggest stories to have hit the headlines less uncertain, it has simultaneously Editorial credit: D K Grove / Shutterstock.com been a year this sector is unlikely over the past year? WRITTEN BY charity times to forget. senior aid workers, who allegedly Roland van Hauwermeiren, who had Safeguarding used prostitutes while working in admitted to using prostitutes at the Brexit was well and truly trumped earthquake-hit Haiti. According to property rented for him by Oxfam this year by safeguarding (or lack a 2011 report seen by The Times, with charitable funds. The incidents, of). It became the new buzzword – Oxfam allowed three men to resign which allegedly took place shortly the topic at the forefront of every from their positions and sacked four after the Haiti earthquake in 2010, conference, seminar and public male employees for gross were raised by a whistle-blower who speech. It was an issue that started misconduct, after they launched claimed the men had partaken in with a news story and quickly an inquiry into sexual exploitation, “sex parties” at the residence. spiralled into an endemic sector bullying and intimidation. Oxfam subsequently launched an crisis. The newspaper revealed one of the inquiry into the allegations, which Of course it all started with men who was granted resignation also included the downloading of Oxfam. In February this year, Oxfam without disciplinary action was the pornography, and noted there was a was accused of covering up for charity’s country director in Haiti, “culture of impunity”, that meant other members of staff didn’t feel they were able to speak up about the inappropriate incidents. Naturally, following the revelations, Oxfam was accused of helping to cover up the scandal, by allowing Hauwermeiren to resign before the investigation had closed. But Oxfam certainly didn’t sit back and take it. After having its name branded across almost every newspaper possible, it took a number of steps to react appropriately to the allegations. The first in a series of responses from Oxfam came in the form of a ‘package of measures’ unveiled by the charity’s chair, Caroline Thomson. In a statement published shortly after the story hit the headlines, Thomson said she “shares the anger and shame that behaviour like that highlighted in 2011 happened in our organisation”. “In the words of our chief executive Mark Goldring, we are ashamed of what happened. We apologise unreservedly. We have
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NewsIn2018.indd 2 06/12/2018 16:39:56 Review News in 2018
made big improvements since 2011 and today I commit that we will improve further.” However, no package of measures could prevent the charity from suffering any immediate effects. Within a matter of days, the charity had lost over 7,000 regular donors, later resulting in a considerable amount of cuts, reportedly worth £16 million. The charity’s chief executive has also since announced he will be stepping down from the post, welcoming CIVICUS chief Danny Sriskandarajahr to the role instead. Upon the announcement, Goldring said he believed “fresh vision and energy” were required to shape Oxfam’s future as it implements the lessons learned from its past safeguarding mistakes.
Further reputational issues Oxfam wasn’t the only charity to the management culture at the time, that these have both had on public suffer a blow to its reputation, finding “evidence of uncomfortable trust and confidence. however. Save the Children’s and/or unsafe behaviour towards The Commission’s chief handling of allegations of colleagues at Save the Children executive, Helen Stephenson met misconduct and harassment against UK”. with the Secretary of State for its staff also became a topic of The charity also established an International Development in interest this year. independent review in February, led February and claimed they both The charity was under public by organisational ethics expert Dr agreed that charities need to do scrutiny after it emerged concerns Suzanne Shale”, into its workplace more to ensure high standards of had been raised about inappropriate culture and met with the safeguarding and set the right comments made by former chief Commission at the time, as well as culture and tone at the top and are executive Justin Forsyth. Two over 2015/16, to discuss allegations committed to ensuring that this is trustees carried out two separate of harassment and misconduct. the case. investigations into complaints made “It is vital that trustees set a by three female employees that Regulatory intervention culture within their charity that resulted in an “unreserved apology” Following both safeguarding prioritises safeguarding so that it is from Forsyth, according to a Save failures, the Charity Commission safe for those affected to come the Children statement in February. was quick to set out steps to improve forward and report incidents and Save the Children subsequently safeguarding among the charity concerns with the assurance they made public details of two reviews sector. The regulator said it had will be handled sensitively and of behaviour and culture at the concerns that Oxfam may not have properly by charities,” she said. charity, after leaked extracts were “fully and frankly” disclosed “Full and frank disclosure to published by the BBC. This found material details about the allegations the regulator and the relevant failures in the way the complaints at the time in 2011, its handling of authorities, nationally and had been handed and was critical of the incidents since, and the impact internationally, is also key.
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NewsIn2018.indd 3 06/12/2018 16:39:57 Review News in 2018
Everybody has the right to be safe, maximum stake for fixed odds and the public rightly expects It IS vItal that tRuSteeS betting terminals from £100 down to charities to be safe and trusted Set a CultuRe that £2. places for all who they come into Crouch, along with former Culture contact with.” pRIoRItISeS SaFeguaRDIng Secretary, Matt Hancock, reportedly people in local democracy, such as pushed hard for this policy, which Civil society strategy through online polls for community was designed to reduce the negative This year, the sector also witnessed decisions. impact excessive gambling can have the introduction of the government’s Following the announcement in on society. new Civil Society Strategy, which the strategy, the government also Following Crouch’s departure, unveiled a number of changes to announced plans to grant £1m to Mims Davies, who is the MP for “strengthen the organisations, which charities in need of support for Eastleigh, was unveiled as her hold our society together”. digital skills, which Jeremy Wright, successor, taking on the wide-range Some of the government’s main the Secretary of State for Digital, of responsibilities the role involves, announcements included releasing Culture, Media and Sport, said will including sport, charities, horse £20m from dormant charitable assets fund training to help charities racing, the National Lottery and and placing the funds into grassroots develop a better understanding of society lotteries. The role also now community organisations. The how technology can make it easier involves work on loneliness. inactive funds will also be plugged for them to achieve their goals. Despite calls for the role to be into the improvement of the take-up A separate Charity Digital Code split up, with many charity leaders of the Social Value Act. was also published in the latter part arguing civil society requires a role Upon announcing the consultation of this year, designed to provide of its own, there is still no sign of for the new strategy, Minister for charities with practical advice on the position changing. sport and civil society, Tracey incorporating technology into Davies was previously a minister Crouch said the strategy is an their work. in the Wales Office and has been a opportunity to “explore ways to A need for the Code was government whip since the build partnerships between public recognised following the Lloyds beginning of the year. In 2017, she sector bodies and charities, to Bank UK Business Digital Index ran the London Marathon in aid mobilise resources and expertise 2017, which showed only 48 per of Cardiac Risk in the Young, and find new solutions to the cent of charities have full basic raising over £1,000. She is also a problems the charity sector faces. digital skills, and 50 per cent of trustee for military charity, Building “It will reaffirm the value that charity leaders lack confidence in Heroes. government places on civil society. introducing digital change. Commenting on the appointment, It will explore what more ACEVO CEO, Vicky Browning, government can do to support its Minister shake-up said: “It is great for the sector work,” Crouch said. In other news this year, Tracey that we have a minister who has The strategy also pledged to Crouch resigned from her role as demonstrated her commitment strengthen corporate social charities minister due to a delay in and passion for charities by running responsibility by setting up a new changes to betting rules. the marathon in aid of a charity Leadership Group with senior The former minister for sport, civil and by holding a trustee position figures from business, investment society and loneliness, who is in a small armed forces charity. and social sectors. It also promises responsible for wide range of “Like her predecessor, it seems to ensure charity trustees reflect the cultural issues including charities, she will not need to be convinced communities they serve. said it is with “great sadness” to of the value of charities but, also have resigned from “one of the best like her predecessor Mims Davies Digital jobs in government”. has a large brief and it is important Digital also featured heavily in The resignation follows reports of that she demonstrates her belief the strategy, with the government Crouch’s ‘fury’ after the government in the value of charities by pledging to launch regional pilots made an announcement in the prioritising the implementation of to trial creative ways of involving Budget to delay plans to cut the the civil society strategy.” ■
22 www.charitytimes.com
NewsIn2018.indd 4 06/12/2018 16:39:57 Charity sector Leadership
cover story Leading by example
Charity leadership is set to be even more challenging in 2019, but the matriarch elephant showcases some simple methods for success.
WRITTEN BY LAUREN WEYMOUTH
But unfortunately, competition isn’t the only issue to contend with. Thanks to the unearthed Oxfam scandal (see p.20), which was quickly followed by news of similar grow as individuals. More troubles at Save the Children, importantly, she shows moments of charities are under more scrutiny stillness, whereby she stops to assess than ever from the public, corporate her surroundings. In these moments, donors and regulators. she uses her senses to the fullest to Following the raft of media reports become more aware of the direction surrounding the sector’s and activities of the herd. safeguarding issues; trust in charities In a position of authority, stopping plateaued down to levels unseen to seek stillness isn’t easy. Many since 2005 and the Charity charity leaders would struggle to Commission quickly began to n the elephant kingdom, the remember the last time they stopped tighten its regulation around charity female matriarch becomes the at all. But the public’s perception safeguarding, placing greater Ileader of her herd, not because she and expectations of charities has pressure on leaders to put strict is the strongest, most aggressive or changed dramatically over the past measures in place to keep their assertive in personality, but because year and it has become essential to organisations from external harm. she has earned the respect of other ensure your organisation is adapting Since the Oxfam allegations, the elephants. The matriarch asserts her to the needs of both donors and regulator has released numerous leadership through her wisdom, beneficiaries. warnings, urging charity leaders to strength and her skills in social strengthen their safeguarding intelligence, problem solving, Protecting the herd policies, but has received little patience, confidence and Charity leaders are now faced with reassurance in return. A report compassion. two choices: embrace change or fail. released by the Charity Like many great leaders – human With over 160,000 charities Commission’s interim taskforce on and otherwise – the matriarch uses registered in the UK, competition is safeguarding, found just 0.9% of her excellent social awareness to tough and leaders need to be quick if charities have reported a understand the elephants in her herd they want to snap up new safeguarding incident since 2014. and provide them with a space to opportunities as and when they arise. Over the same period, only 1.5% of
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FeatureHowToBeAbetterLeader.indd 3 07/12/2018 11:29:37 Charity sector Leadership
charities submitted any kind of make any charity – big or small – serious incident report. vulnerable, and create opportunities “We accept that there may be a for fraudsters that will have significant proportion of charities devastating effects.” that do not experience safeguarding incidents, or only experience such Significance leadership incidents very rarely, due to the So what can leaders do to prevent nature of their work,” the taskforce such instances from happening? In said at the time, “however, it seems the case of the matriarch elephant, unlikely that 99.1% of charities did strong leadership and successful not experience any reportable teamwork comes from careful career safeguarding issues over a 4 year planning and on-the-job training to period.” ensure there is at least one “The public rightly expect experienced leader who respects the charities to demonstrate the highest facilitated by “excessive trust” and a matriarch, and is ready to take on the standards of ethical behaviour and “lack of challenge” from people role when something goes wrong. attitude,” Charity Commission working from within the Environmentalists call this director of policy, planning and organisation. ‘elephant significant leadership’, communications Sarah Atkinson The watchdog’s findings which the matriarch will demonstrate says. “That includes taking action highlighted a number of ‘cultural by showing respect to each member when something has gone badly factors’ that contribute to insider of her team by analysing and valuing wrong, or when there’s been a near fraud, including giving employees the skills they can individually bring miss. Making a serious incident excessive responsibility, or failing to to the group. report to the Commission is not in challenge individuals properly. As a This method of leadership is often itself an admission of wrongdoing or result, the regulator has been transferred into business, as it failure. Quite the reverse: it encouraging leaders to try and adopt encourages leaders to gain a better demonstrates that a charity is a culture whereby staff, trustees and understanding of what skills each responding properly to incident or volunteers are all reminded they employee can bring to the concern.” need to flag any concerning organisation, and to inspire them to behaviour happening internally, thrive. Leadership expert, Simon All eyes and ears rather than ‘turning a blind eye when Sinek articulates this well: “Every Raising and reporting concerns internal processes aren’t followed’, company, organisation or group with requires careful observation, and a as is often the case. the ability to inspire starts with a good understanding of the people “The crucial lesson for charities person or small group of people who working within the organisation. isn’t about introducing lengthy were inspired to do something Much like the matriarch elephant, counter-fraud policies. It’s about bigger than themselves,” he says. this is where it becomes crucial to changing people’s behaviours and But for best results, leaders will seek those moments of stillness to encouraging staff and all those always benefit from a more diverse spot any potential danger signs. involved in charities to be vigilant team that can offer a multitude of Unfortunately, a high proportion and speak out when things don’t different skills and experiences in of the risks facing charities come seem right. This must be the first place. from within the organisation itself. demonstrated by everyone in an Despite this, diverse leadership This year alone, countless numbers organisation to be truly effective,” teams are still scarce among the of charities became victims of Michelle Russell, director of charity sector. In fact, according to a internal fraud, often by unassuming investigations, monitoring and study published by recruitment members of staff looking to take enforcement at the Charity company Green Park this summer, a advantage of their position of power. Commission explains. third of the UK’s largest charities In a warning issued to charity “A dangerous combination of a have no non-white people on their leaders, the regulator claimed almost lack of accountability and controls senior leadership teams or boards. 75% of insider frauds at charities are not being consistently applied can The study used a sophisticated
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FeatureHowToBeAbetterLeader.indd 4 07/12/2018 11:29:37 Charity sector Leadership
classification system to assess the collectively working towards a could help your charity and the risks ethnic background of people holding shared vision. if your charity doesn’t change. Often more than 1,800 positions at the top 7. Recruit for potential, not the best way to do this is to show 100 charities, and found that only perfection. how similar organisations are using 8.1% of senior positions were held 8. Value lived experience, the digital to raise money, reach more by people from ethnic minorities. ability to draw from one’s lived people or create competitive Worryingly, the figure fell to 6.2% experience and to bring insights advantage.” when narrowed down to include to an organisation that can only the top three positions of chair, develop its work. Lessons from a matriarch chief executive or chief finance Matriarch elephants are trusted and officer. “No-one is getting it all right: we all respected because of their ability to Leadership body ACEVO, have to be better,” Vicky Browning, make wise decisions. Whilst other together with the Institute of chief executive of ACEVO says. members of the herd might offer Fundraising, has subsequently “However if leaders do get it right suggestions or contribute to the released a list of principles for then they will create stronger, more overall decision, the matriarch uses leaders to abide by to help plug the resilient and creative charities.” its wisdom to reach an overall diversity ‘deficit’. These, ACEVO decision and to protect its herd from claims, will help leaders to prevent Bridging the skills gap any danger. groupthink, generate more income, Moving into the year ahead, the But much of this is down to its operate more creatively and attract expectations placed on charity careful observation; a skill that is best talent. leaders will continue to increase. essential for learning and Volunteers and employees of development. This year alone, The bodies propose leaders should charities of all sizes are now looking charity chief executives have had to do the following: to CEOs, directors and managers to contend with political volatility from lead the way – and not just on the Brexit; heightened safeguarding 1. Acknowledge that there is a issue of diversity. They are looking regulation; a fall in levels of public problem with racial diversity in to their leaders to embrace digital trust; a number of new governance the charity sector and commit to and to be able to showcase good frameworks; increased fundraising working to change that. examples of using digital effectively. regulation; disruptive technology 2. Recognise the important role The Charity Digital Skills report and much more. leaders have in creating change published by Zoe Amar Jennifer Smith, a biology by modelling positive behaviour Communications earlier in the year professor and co-author of a report and taking action. revealed 63% of charities expect into leadership in mammalian 3. Learn about racial bias and how their leaders to be able to provide societies, studied leadership among it impacts leadership decisions. guidance around digital, and a animals, and found that in 4. Commit to setting permanent and further 53% said they want leaders troublesome environments, leaders minimum targets for diversity to have some experience or can learn a thing or two from the that reflects the participants, understanding of digital tools – a way elephants and other animals donors, beneficiaries and the demand that has grown year on year. lead their teams. “What we found population of the area that my “If there is one thing I would like here is that, time and again, the most charity operates in. people to remember about this year’s successful leaders are actually those 5. Commit to action and invest Charity Digital Skills report, it’s this: that take all of the demands from the resources, where necessary, in charities want their leaders to drive society into account,” she explains. order to improve racial diversity digital. They cannot put digital in a “[They] don’t necessarily know to in my charity. black box and pass it to another negotiate or navigate through their 6. View staff as the sum of many team,” Zoe Amar explains. worlds,” she adds, “but through the parts rather than a single entity “If your leadership team aren’t on leadership of the more experienced and recruit to build a diverse board with digital, it’s time to individuals, they can [learn] new group of talented people discuss the benefits of how digital insights.” ■
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FeatureHowToBeAbetterLeader.indd 5 07/12/2018 11:29:37 THE FUTURE OF CHARITY
2 May 2019, Waldorf Hilton, London
For the latest news and updates follow us @CharityTimes #CTconference
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ConferenceAd-FullPage.indd 1 06/12/2018 16:49:38 Agenda 2019 Fundraising
OUTLOOK Outlook 2019: The fundraising agenda The past few years have proven to be a huge challenge for fundraisers, who have had to work against a backdrop of media scrutiny and greater competition. Will 2019 be a
little lighter on the chaos? WRITTEN BY BECKY SLACK
ewer people are giving to common way of giving money to charity but they are also charity, with over half (55%) making Fdonating more. This was the gifts in this way – charities are result of CAF’s UK Giving 2018 mindful that this is likely to change report, which reported a sector and are taking steps to adapt. income of £10.3 billion, up from For instance, UK Finance’s 2018 £9.7 billion the previous year. The report, UK Payment Markets, figures also pushed the nation up showed that contactless payments five places to sixth in CAF’s 2018 have increased by 97%, meaning for World Giving Index. the first time in the UK, payments “This is down to the incredible by debit card are more common than work of the fundraising community cash. Charities are paying attention who inspire people to give and to this with Teenage Cancer Trust, connect with the causes they care Sue Ryder Care, Mary’s Meals, about,” a spokesperson for the Blue Cross and the Barbican Institute of Fundraising said at among those who have begun the time. to use contactless technologies Finally – a positive story for within their fundraising. fundraisers who, over recent years, Spitalfields Music is another. have battled against a volatile Since June, it has been using economy, continued austerity contactless to collect donations at its measures, media scrutiny and much performances. “We found it difficult greater competition. Will 2018 be to find a supplier at first,” explains remembered more favourably than the charity’s director of others? And what could 2019 have in store? FINALLY A POSITIVE STORY Time to wave goodbye to cash? FOR FUNDRAISERS WHO While traditional forms of donating HAVE BATTLED AGAINST A remain popular for now – for example, cash remains the most VOLATILE ECONOMY
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FundraisingAgenda.indd 3 07/12/2018 11:33:28 Agenda 2019 Fundraising
development, Dominic Haddock. Digital adoption prevalence of constituent-facing “Lots of pilots had been set up a Overall, the charity sector is still mobile apps is poised to rise by year or two ago, which hadn’t yet grappling with new and digital 174% within the same time period, been reviewed and understood, and technologies. Hindered by a lack of and the use of marketing automation some companies were waiting for skills and confidence, adoption of is set to double”, the report said. this analysis before bringing on new digital tools and platforms is lower partners. We found ourselves stuck than most organisations would like. Retail trends in the middle with nowhere to go. Salesforce’s 2018 Nonprofit Trends Digital is also playing an important Then luckily, we found Good Box. Report, which looked at charities in role within charity retail. A trend that “We adjust the amount to be taken the UK, North America and has continued from last year, there depending on the type of event we Australasia, found that while 60% has been a large increase in online are holding, and we make an use social engagement platforms for sales of goods via third-party announcement at the start of the fundraising, only a third use websites with charities experiencing performance so that people know to “community platforms to connect an 18% increase in this income year- expect it. Donors seem to be really stakeholders and marketing on-year. However, this was tempered enjoying it. For many of them, it’s automation systems to foster by a large decrease in sales through the first time they’ve used it, so they personalised journeys”. charities’ own websites of almost a find it quite fun.” However, that looks set to change third, meaning that overall online However, he reminds charities that in the coming months and years: sales have increased by 2%. the lack of data collection provided “While only 5% of non-profits have The Charity Retail Association by contactless means this is a facility AI capabilities, that figure is (CRA) confirmed that charities are to “replace a bucket rather than forecasted to skyrocket by 361% feeling positive about the role digital develop a new giving programme”. over the next two years. The plays within their retail businesses, with 89% expecting their online sales to grow in 2018/19 and none predicting a drop. “Charity retailers are becoming more proficient in selecting which donated items to put online and using more expertise in displaying them. Retailers have realised that it can be valuable to list niche items online, so they are more likely to reach their target audience,” Matt Kelcher, head of Public Affairs and Research at the CRA says. On the high street, the picture is also one of confidence. While the number of charity shops fell by 119 in the first six months of 2018, according to figures from the Local Data Company, this does not necessarily mean they are experiencing difficulties. “Some charity chains are opening new stores, others are closing some outlets to consolidate their position. Shop closures are not necessarily a sign of problems, particularly as the charity retail sector is outperforming
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FundraisingAgenda.indd 4 06/12/2018 15:14:26 Agenda 2019 Fundraising
bedding in, with its second birthday, the collection of 94% of its target levy, and an increased number of small charities engaging with it. Its profile in the wider world also increased, said a spokesperson: “For the year 2017 to 2018, we answered 1,325 enquiries, received nearly web 180,000 visitors and over 5,000 newsletter subscribers, the commercial retail sector on high which the sector has risen to the while FPS has received over street as a whole,” Kelcher says. challenges posed by GDPR.” 20,000 suppressions.” However, this does not mean the Elsewhere, the Charity GDPR sector can rest on its laurels. More Commission launched a new Time consuming, complicated, and data regulation is on the horizon in statement of strategic intent, which in many cases, expensive to the form of the EU ePrivacy includes an enhanced focus on implement, the new General Data Regulation, the draft of which is ensuring charities live up to their Protection Regulation (GDPR) scheduled for 2019. It will update purpose and the high expectations of implemented this year pushed data regulation around electronic direct the public. collection and data management to marketing, including social media, Sarah Atkinson, Director of Policy, the top of many fundraising agendas. and will deal with important issues Planning and Communications said: Ensuring compliance with the rules such as confidentiality of “Charities should fundraise has not been an easy process for information, treatment of traffic responsibly in order to pay the many organisations, particularly data, spam and cookies. generous public the respect it those such as Cats Protection, which The Fundraising Regulator has deserves. Our guidance for trustees have complex organisational confirmed it will be producing is clear that decisions around raising structures. guidance to help charities prepare funds should consider a charity’s “Much like everyone else, GDPR for any changes they may need to best interests and not be at odds with has been our main challenge for make as a result of the new its values.” 2018. For us it was especially regulation. difficult as we have over 250 Diversity in fundraising branches and adoption centres. Charities rule The increased focus on diversity We’ve managed to tackle the In addition to GDPR, 2018 saw a within the workplace was embraced challenge head on through a GDPR complete overhaul of the Code of by the fundraising community in working group, which involved Fundraising Practice by the 2018. The Institute of Fundraising a lot of our digital fundraising Fundraising Regulator and a new, has been leading the charge on this manager’s expertise and a updated version being published for front – beginning with the specialised email project team consultation. foundation of an equality, diversity to support our branches.” Multiple changes over the years and inclusion panel; the launch of an While it is still very early days, it had made the Code complex, access fund to support fundraisers would appear that the hard work is unwieldy and in places unnecessarily from minority backgrounds to attend paying off. The ICO pointed to its repetitive, so the revamp aims to Convention, and the publication of a recent audit of eight large charities, simplify things. The new version Manifesto for Change, which has set which showed “a great deal of was open to consultation during the out how the Institute aims to become positives as well as areas that can be latter part of 2018. Following this an exemplary employer as well as improved upon”, while the will be a full and technical legal how it can support the fundraising Fundraising Regulator said: “We’ve review, with the new code scheduled profession to be the same. Expect been particularly impressed with the for publication in March 2019. much more focus on this through proactive and progressive way in This year also saw the Regulator 2019. ■
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SustainabilitySummitAd-.indd 1 07/12/2018 11:43:23 Agenda 2019 Technology
outlook Outlook 2019: The technology agenda
Charities are now faced with two choices: embrace digital, or fail. But what key trends are
likely to dominate the technology space this coming year? WRITTEN BY antony savvas
n the past few months alone, Stuart Toller, director at DAM with an Alexa-based help and some of the larger charities, such Digital, is slightly sceptical. “Very advice service might gain some Ias the British Heart Foundation few charities, such as the British valuable publicity, it’s unlikely and Breast Cancer Care, have Heart Foundation, have enough of to significantly increase income launched new Amazon Alexa their digital ducks in a row that they or improve service performance capabilities to allow people to can justify spending on new and reach for the majority of donate through Alexa gadgets. These technology over spending that charities. It’s important to keep are the beginnings of organisations money on improving existing that in mind when looking at all in the sector using much vaunted services, systems or processes,” the new shiny things.” artificial intelligence. he says. Another sceptic is Ed Gairdner, So, by this time next year, “Whilst being the first to market chief operating officer at non-profit will other charities have followed this advanced path, including the wider use of digital fundraising platforms, innovative mobile apps, gamification to deliver better results, and the adoption of cryptocurrencies as part of their digital transformation efforts?
Very few ChariTies Can jusTify spending On new TeCh OVer imprOVing exisTing serViCes
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TechnologyAgenda.indd 3 06/12/2018 10:44:40 Agenda 2019 Technology
charitable giving platform The Good such as WWF, Save the Children the ability to share photos and Exchange. “While some larger and Oxfam. videos with headquarters or other players are making use of the latest WWF has been using Workplace teams easily. And auto-translation technologies on offer – like voice- to power Earth Hour, its global tools help break down cultural or activated tools at The British Heart movement to help protect different linguistic barriers. Foundation and the British Red species and the planet. Annette Also using Workplace, Save the Cross – even if smaller and local Gevaert, head of Workplace for Children volunteers were able to charities want to use new Good at Facebook, says: “Social highlight the refugee crisis from technologies, they’re unlikely to media and collaboration platforms boats in the Mediterranean back to have the necessary resources to do have become incredibly powerful their headquarters in real-time via so,” Gairdner says. assets for charities in 2018, and this live video streaming. Not only is this “The charitable sector is currently will continue into 2019 and beyond.” solution free, it also uses the familiar operating between five and 10 WWF has been using Workplace Facebook user interface, so there years behind the commercial sector to increase awareness and should be a smooth technology when it comes to embracing the engagement of their events. WWF’s “buy-in” among staff at digital revolution.” annual conference was traditionally organisations of all sizes. The picture of some organisations attended by senior stakeholders and struggling in the technology and C-level executives alone, but is now mobile for giving digital transformation space is not a broadcast to the charity’s entire Generating hard cash through newly painted one, but many are still worldwide staff via Workplace live donors’ everyday purchases is now a making good progress. (HD streaming within Workplace). growing opportunity. The Give as “Features such as this led to you Live app is one of several that is facebook employee engagement increasing by now being taken up by charities. Social media and advertising giant more than 200% and has given Annabelle Risdon, director and head Facebook recently made its WWF the opportunity to gain of partnerships at shopping and Workplace by Facebook online valuable insight and suggestions fundraising website Give as you collaboration tool free for all not- from its employees at all levels,” Live, says: “With cash use declining, for-profits worldwide. A number Gevaert explains. many charities know how difficult it are already using the technology The Workplace mobile app also is to do traditional fundraising these to help expedite the work they do, gives WWF employees in the field days, so having other options is vital. That said, many charities don’t have the resources to build their own technology to fundraise digitally.” To help solve this problem, the Give as you Live mobile app became available this year on Apple iOS, with an Android version for other devices due out in early 2019. Shoppers can use the app to raise money for charities as they buy things at more than 4,300 retailers. The Border Collie Trust, located in Staffordshire, is one of the many charities benefitting. Recently, it had to relocate its kennels to make way for the HS2 high-speed rail link. Through the app and other digital assets provided by Give as you Live, the charity raised more than £10,000.
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TechnologyAgenda.indd 4 06/12/2018 10:44:42 Agenda 2019 Technology
Lyn Prodger, corporate partnerships manager at children’s charity my AFK, another organisation using the app, says: “We’ve got hundreds of Give as you Live supporters who’ve raised more than £10,000 for my AFK. The unrestricted funding we receive helps fund specialist mobility equipment, employment opportunities and training for the disabled young people we work with.”
Cryptocurrencies for good There are millions of computers that are left idle, so why not put them to good use to raise money for charity? Cudo is a technology that turns unused or wasted computing power into cryptocurrency. streams, but could attract new a national movement powered by Whilst computers are idling, Cudo supporters. “For example, many the Makerble platform, and The uses this spare capacity to generate charities use direct debits to get African Foundation for Development income for charities by “mining” for people signed-up and committed is now using Makerble to streamline electronic currency. So far, Cudo to a payment stream. Cryptocurrency its impact measurement and Donate has been adopted by The and blockchain technology does frameworks for reporting back Children’s Air Ambulance and War away with the need for direct debits to funders. Child. Founder Matt Hawkins’ and may attract a different kind Charities can start for free, then mission is to “raise $1bn for charity of supporter, who either doesn’t upgrade if they need to, picking the within the next five years”. want the hassle of setting up a DD, services that are right for their needs. Hawkins says: “From UNICEF or worries about the security Charities with an annual income of to the RNLI, charities are waking implications of having their less than £50,000 can apply for a up to the immense power of financial data with a third party,” year’s free pass on the platform. cryptocurrency and blockchain says Hawkins. “Impact measurement doesn’t technology [the secure data sharing have to be boring, we can make it and transaction system]. Using a gamification and measuring fun, easy and accessible, with user- technology-driven approach should impact friendly tools and games,” says allow charities to attract a new, It’s hard to collect data on the Makerble. The system replaces younger but also tech-savvy impact of campaigns, even though paper-based forms, surveys and demographic. this is important to help raise future spreadsheets with an all-in-one tool “This could be of critical funds. Makerble aims to make it that staff, volunteers and donors can importance when you consider that easier to collect the information by hopefully enjoy using. the average age of supporters for using gamification. It helps charities All these technologies do not some charities is 60 plus. Who will collaborate on projects, track involve charities having to rip out replace this demographic if charities individual beneficiaries, collect the systems they already use, they can’t attract the youth of today?” survey results, analyse progress are designed to complement what Hawkins explains that towards outcomes and share ideas. they have, which is a safer and more cryptocurrencies do not have to Wave Trust’s 70/30 Network is a gradual approach to digital replace any existing revenue grassroots campaign that has become transformation. ■
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TechnologyAgenda.indd 5 06/12/2018 10:44:44 Technology Social media
top 25 Who are the top charity leaders on social media? he top 25 charity CEOs on The top charity leaders on social media were announced social media were announced Tin November at an awards in November, but who made it to the list? ceremony in London. Hosted by WRITTEN BY LAUREN WEYMOUTH digital experts Zoe Amar and Matt Collins, the annual awards are and operates. Looking ahead to the 3. Tracey Bleakley, Hospice UK designed to praise charity leaders 2019 awards, our judging panel will 4. Sarah Brook, The Sparkle who have used social media to share be keen to see more nominations Foundation stories about their individual from leaders who exemplify this 5. Shona Cardle, Glasgow charities and journeys as leaders. ethos and this year’s judges are Children’s Hospital Charity Kate Collins, CEO of Teenage encouraging winners to ‘pay it 6. Brita Fernandez Schmidt, Cancer Trust, took home the top spot forward’ by nominating those they Women for Women this year, winning the overall award admire, from charities of all sizes International UK for Best CEO on Social Media. and causes, next year.” 7. Frank Fletcher, Ellen MacArthur Meanwhile, Helen Stokes-Lampard, Cancer Trust CEO of Royal College of General The individual winners 8. Michelle Hill, TLC: Talk, Practitioners, was awarded both Best • Best CEO on Social Media – Listen, Change Trustee on Social Media and Best Kate Collins, Teenage Cancer 9. Jules Hillier, Pause Digital Trustee. Trust 10. Martin Houghton Brown, Giresh Menon from ActionAid • Best Trustee on Social Media – St John Ambulance UK, Mandy Johnson from the Small Helen Stokes-Lampard, RCGP 11. Sarah Hughes, Centre for Mental Charities Coalition and Paul Streets • Best Leader on Social Media – Health from Lloyds Bank Foundation for Caroline Price, BEAT (Highly 12. Matt Hyde, The Scout England and Wales were among commended – Rob Murray, Association some of the other winners. Changing Faces) 13. Mandy Johnson, Small The nominees were judged by a • Best Rising Star on Social Media Charities Coalition panel of digital leaders chaired by – Nikki Bell, BHF (Highly 14 Matt Lent, Future First Simon Blake, CEO of Mental Health commended – Susan Hunter, 15. Josiah Lockhart, Firstport First Aid (MHFA) England. Other YouthLink Scotland) 16. Louise Macdonald OBE, judges included Matt Hodson, • Best Digital Trustee – Helen Young Scot Executive Director at NAM (and last Stokes-Lampard, RCGP 17. Girish Menon, ActionAid UK year’s overall winner), Steve Ford, • Best Digital Leader – Julie Dodd, 18. Helen Milner OBE, Good CEO of Parkinson’s UK, Lara Parkinson’s UK Things Foundation Burns, CDO at Age UK and Saeed • Best Digital Champion – Liz 19. Gemma Peters, Bloodwise Atcha, CEO of Xplode Mag. Green, YouthLink Scotland 20. Toby Porter, Acorns Children’s “This year’s winners continue to (Highly commended – Seb Baird, Hospice Trust blaze a trail for others by creating Time to Change) 21. Chris Sherwood, RSPCA debate online, championing their 22. Anna Smee, UK Youth charities and developing The top 25 social CEOs 23. Paul Streets OBE, Lloyds relationships which help their 1. Kate Collins, Teenage Bank Foundation organisations,” explains Amar. Cancer Trust 24. Jeremy Taylor, “Digital is now central to how the 2. Sophie Biebuyck, National Voices modern charity leader strategises Hearing Help Essex 25. Peter Wanless, NSPCC
34 www.charitytimes.com
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JobsAd.indd 1 09/08/2018 16:59:33 Agenda 2019 Governance
outlook Outlook 2019: The governance agenda After another tumultuous year in the charity sector, governance still demands much attention from boards, advisers and commentators.
WRITTEN BY LOUISE THOMSON, HEAD OF pOLIcy (NFp), IcSA: THE GOVERNANcE INSTITUTE
his year, we have had from governance failures in the • Civil Society Futures’ final safeguarding concerns, commercial sector will likely impact report with challenges to change Treputational management the charity sector in the coming year. governance thinking in terms of issues, GDPR panic, executive pay But let’s take a little look back PACT – power, accountability, and a new strategic intent from before we scan forward. connection, trust – and in terms the Charity Commission, which of ensuring the sector’s ongoing continues to focus on and raise the 2018 brought in the following relevance to the wider public. bar on public trust. Has there ever charity governance developments: been a busier time for governance • GDPR For 2019, and beyond, the advisers and practitioners? Probably, • Changes to the Charities SORP governance opportunities and but governance just didn’t make • Implementation of the remaining challenges will continue to demand the headlines then in the way that provisions of the Charities time from charity boards and it does today. Act 2016 regulators. Some matters will be The charity sector wasn’t alone in • DCMS’ third sector strategy familiar and others less so. its governance challenges: do • NCVO’s Charity Ethical Safeguarding, and especially Carillion, Patisserie Valerie, Nissan, Principles the requirement to report serious FIFA (again) and the PFA ring a bell • Scotland’s Governance Code for incidents to the Charity Commission, with anyone? It is worth noting that the Third Sector will continue to exercise many some of the developments arising • The Charity Digital Code charity boards, with some
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Governance.indd 2 07/12/2018 11:34:31 Agenda 2019 Governance
organisations significantly increasing have regard (amongst other matters) Reviewing the governance the number of reports they submit to the likely consequences of framework each year. With safeguarding taking any decision in the long term, Another development will be on a very broad definition under the the interests of the company’s a planned ‘refresh’ of the Charity reporting regime, trustees and their employees, the need to foster the Governance Code. Reviewing advisers will need to spend more company’s business relationships the current version in light of time thinking about the implications with suppliers, customers and the scandals and developments of adverse and unplanned actions others, the impact of the company’s detailed above will be essential and behaviours that put others at operations on the community and the if the sector is to build robust risk. Such considerations will also environment, the desirability of the governance arrangements that require trustees to review their company maintaining a reputation can meet and withstand any communications strategy in order to for high standards of business future adverse publicity. While a deal with any media interest as a conduct, and the need to act fairly complete revision is not envisioned, result of reporting serious incidents between members of the company”. it does need to reflect and reference to the regulator. Though this is something that is the changing environment in terms There may have been a making more of an impact in of ethics, safeguarding, reporting concentration of activity in the commercial entities, it would be a and be better placed to anticipate sector to ensure organisations were wise board that looked at this matter and minimising the impact of GDPR ready, however it does not too, even if there is a belief that the whatever else is lurking out there mean that all the work has been sector already does it better. about to be exposed. done and does not need to be Following The Children’s And finally, there is the ongoing reviewed or revised. It is unlikely Investment Fund Foundation (UK) v ‘will they, won’t they?’ anticipation that the ICO or the media interest HM Attorney General and others of a consultation on the Charity in the sector’s practices will [2017] EWHC 1379 (Ch) ruling on Commission levy. Perhaps once the diminish, which in turn means the fiduciary duties of members of Brexit dust has settled there may be that it should not entirely disappear charitable companies, revised the political room and inclination to from the board’s agenda. guidance from the Charity grasp this particularly thorny issue. Commission will likely be produced The sector’s need to review and Ethics to clarify the Commission’s improve its governance framework The embedding of the Charity approach to the matter. This, in turn, is as urgent as it has ever been, Ethical Principles will require will require boards of membership but it is not the only sector that attention by boards, especially as bodies to think about their should reflect and revise where to what ethical considerations are governance arrangements and ensure necessary. The demand for, taken into account when making they are proportionate and and interest in, governance is decisions and how the principles appropriate. not waning. are embedded within internal codes Measures to improve board We need, therefore, to be prepared of conduct and staff handbooks. diversity, with particular emphasis to meet and respond to any questions Allied to that will be a re-invigorated on women and BAME candidates that suggest that it isn’t essential to push for charitable companies to have been gaining traction in the the frontline. Good governance is demonstrate their application of commercial world over a longer not the destination, it is the means s172 of the Companies Act for the period than in the charity sector. by which each charity fulfils its wider interests of stakeholders. But given the communities the objects legally, effectively and For those that may need charity sector aims to help and ethically. As such, it will require all reminding, s172 states: “A director represent, perhaps more impetus involved in governance to continue of a company must act in the way he should be given by boards not to improve and anticipate future considers, in good faith, would be just to recruit diverse trustees, but to challenges so that each organisation most likely to promote the success ensure the workforce and volunteer can deliver their stated aims for the of the company for the benefit of its corps are also suitably marbled with important people and communities members as a whole, and in doing so diversity – in its widest sense. they serve. ■
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Governance.indd 3 06/12/2018 15:47:21 Agenda 2019 Finance
outlook
or many charity finance teams, 2018 will have fbeen a challenging year, Outlook 2019: with increasing competition for funding and a sustained regulatory environment, not to The finance agenda mention the prolonged uncertainty around Brexit. What does 2019 have in store for charity finance teams? So, as we look to the future, what does 2019 have in store? WRITTEN BY Daniel Chan, trustee for uK Youth anD senior Increasingly charities are looking to manager at PwC take difficult or higher risk decisions and the need for reliable insight is and also by increasing the visibility good contractual management therefore growing. This in turn puts of backroom staff who are integral with colleagues which will help pressure on the finance team as the to a charity’s infrastructure. to ensure that the processes and source of much of that insight, controls are working for active which is why it is important that it is Adapting to new income trends debt management which, in turn, fit for purpose and not simply seen As charities are under increasing will help to provide stability in as ‘where the beans are counted’. pressure to do more with less, terms of cash flow. The team finance teams have an important should have a good understanding part to play in making sure the of the charity’s procurement and wider charity understands the full supply chain and can help to implications of any new activities. inform the charity’s position in Finance teams can help to streamline relation to modern slavery, an area how a charity looks to operate where greater attention should be through a financial lens. Many paid by charities generally. finance teams will, of course, already be doing this, but properly Focus on fraud understanding the profile and trends Charity Fraud Awareness Week of their different income streams can reminded us of the risks that finance Maximising unrestricted funds enable the charity to recognise shifts teams need to guard against, The maximisation of unrestricted and aid the wider business to adapt. including cyber fraud, grant fraud, funds, where there is greatest Increasingly, greater and more donation and legacy income fraud, discretion over its spend, remains a effective use of technology can help insider fraud and how to move priority for many charities, finance teams to provide accurate money safely. Phishing attempts particularly as this is often the basis information in real time in order to have become more advanced and for setting a charity’s reserves aid decision-making. other more complex frauds develop policy. Results of a survey by each day. These need a robust nfpSynergy showed that “charities control environment, constant valued unrestricted funds twice as vigilance and a degree of scepticism much as restricted funds for a £100k to deter and prevent financial loss. grant”. Finance teams can play an Nowadays, it is no longer a matter of active role in promoting the case for whether you have been targeted, but this, including with funders. The To whether the charity is aware how it the Core report from Charity has been targeted and how the Futures’ collaboration with The attempts have been stopped. Behavioural Insights Team outlines Charities are not immune to this, and some ways for this, including Know your funders and supply there will be those that actively helping the wider charity to alter the chains target charities or use a charity’s narrative around their fixed costs Finance teams can champion brand to target others.
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Finance-Tax-Audit-Agenda.indd 2 05/12/2018 17:32:23 Agenda 2019 Finance
Key accounting, tax and audit of material significance. The need spend any unexpected funds considerations for good governance and a strong that were received or mitigate From an accounting perspective, control environment therefore against a sudden reduction in the Charities SORP (FRS 102) remains very apparent. This is income, and more importantly Update Bulletin 2 was published important in the context of the the reason for that decision in October 2018. This set out Charity Commission’s Statement of would be taken. clarifying amendments, significant Strategic Intent 2018 - 2023 that was amendments and other amendments launched earlier in 2018. that charities need to consider for their financial reporting. It is Spotlight on fundraising, important for charities to fully investments and remuneration consider upfront the financial Finance teams have a key role to reporting implications of any play in helping the charity to new activities, rather than as navigate wider issues for the charity an afterthought. sector that will no doubt need focus A key development that charities in 2019. While fundraising is often a will need to focus on is around the separate team to finance, these are government’s ‘Making Tax Digital’ undoubtedly intertwined and there is initiative for VAT. While HMRC has a role for finance teams to input in Preparing for Brexit announced that it will not pursue upholding fundraising standards. There is also the matter of the filing or record keeping penalties How a charity invests its funds UK’s withdrawal from the European where businesses are doing their continues to draw attention and Union. A deal between the EU best to comply with the law during therefore it may be helpful to review and the UK is the most likely the first year of mandation, charities how it can be forward thinking in outcome, however there are should be prepared to be compliant relation to socially responsible uncertainties for every organisation, by the appropriate time frame. investment. The question of including charities, which may Charities should also be aware remuneration, often the preserve of affect their financial and operational of the key implications from the the human resources department, sustainability. Finance teams Autumn Budget, including different will also benefit from the insight of are at the heart of helping charities funds being set up or allocated, finance around issues like senior to understand the impact of this on announcements impacting on the management remuneration and their work and they should continue areas of delivery focus, such as internal or external ratios or preparing for both a deal and no health and social care, as well as benchmarks as well as the reporting deal scenarios until an agreement specific tax announcements that of pay across the organisation and is ratified. may be of some interest, such as the pay gaps by protected the increase in the upper limit for characteristics, such as gender and A ‘fit for purpose’ finance team trading without incurring a tax ethnicity. A New Year presents a time liability and a reduction in the to look again at the value that administration of the Retail Gift Impact and the ‘marginal pound’ a finance team can bring, and Aid Scheme. As charities consider the impact consider whether the right level In the current regulatory they make for their beneficiaries of investment is there to support environment, finance teams should and wider society, finance teams the wider charity in its strategic consider whether the skills and can make a significant contribution ambition. With a fresh perspective experiences of the finance team are in helping to understand which on the risks and opportunities right for the size and scale of the investments are delivering impact that a charity will face in 2019 charity. There is greater emphasis on and prioritise accordingly. This is and beyond, it is a good time to charities to report to the regulator in the ‘marginal pound’ question, ensure that the finance team is relation to serious incidents, and also and whether charities really fit for purpose to play a key role in for charity auditors to report matters understand how they would driving the charity’s success. ■
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Finance-Tax-Audit-Agenda.indd 3 05/12/2018 17:32:24 Agenda 2019 Investment
outlook Outlook 2019: The investment agenda
he public’s expectations of What are the key issues likely to top the charity investment charities are likely to be a key Tdriver for investments in 2019. agenda in the year ahead? While politics have played a significant role in the investment management of their portfolios, and risk management before they go into space throughout much of 2018, believe in the importance of the portfolio.” there is now much more emphasis engaging with companies to But moving into 2019, the key on ESG factors and the advancement positively influence their behaviours. will not be to increase the amount of a charity’s overall mission According to the Newton Charity of restrictions or to divest, but through its investment portfolio. Investment Survey released in instead to consider individual Investment income provides, on October this year, 71% of charities charity needs and engage with average, 7% of a charity’s overall stated ESG factors were important to companies accordingly. income. It might seem like a small them, compared to 62% in 2016. “Restrictions could reduce the part of the financial management “Charities deserve the highest range of investments available and puzzle, but donors are increasingly level of investment management,” may have an impact on returns,” expecting charities to be able to says Antonia Coad, head of investor says Andrew Wauchope, senior showcase their values, attitudes and relations and external affairs at investment director at Psigma. goals through the way they invest. Oxford University Endowment “Moreover, each board of trustees The good news is that many Management. “All [charity] will need to consider what level of charities acknowledge the need to investments should go through materiality matters to them. For consider ESG factors in the rigorous environmental and social example, does a prohibition on
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InvestmentAgenda.indd 2 06/12/2018 17:39:47 Agenda 2019 Investment
and heavy reliance on government funding this year,” Dowie explains. “Thus, we think more charities, as part of their investment policy statement, should be looking to diversify globally to make sure all their eggs aren’t in one basket so that if the worst case scenario does investing in tobacco mean not happen, it isn’t going to be investing in those who retail it? RestRictions coulD completely devastating.” “It may sound obvious, however ReDuce the Range of “Ultimately, when you need those if your investment managers are reserves, there might not be as much doing their job properly they investments available there as you think,” he adds. This should avoid companies who means over the coming year, boards behave badly regardless. This is about poor portfolio performance will need to ensure they take time to because companies, who are poor after just one year. A further 33% review their existing investment corporate citizens, are likely to face said they would become concerned strategies to spot any areas for substantial sanctions from national after three years. improvement. governments and risk losing a large But going forward, this level More importantly, charities will number of both potential and of panic will simply be “counter- need to ensure they are working with existing customers. productive” to the overall aim an investment manager with the “These issues will not only tie of generating returns, says John right ethos, an ARC spokesperson up executive time, which could be Dowie, senior consultant at Asset told delegates at a roundtable earlier spent elsewhere on improving the Risk Consultants. this year. business, but also should result in “The only thing you can check “It’s important to discuss an significantly lower profitability. meaningfully over [a year to three ethical investment policy, and then Therefore any investment manager years] is whether investment find a manager who will help you to looking to generate good returns managers are obeying the refine and implement that policy,” should avoid them.” investment policies you have put she said. into place. “On the service side, charities Risk “So, if performance is poor and need to look at whether the manager Failure to take ESG requirements they’re not doing what you told is providing them with what they into consideration is deemed to them to do at the start then you need in terms of understanding be a huge risk for charities, due to would be right to review. But unless their portfolio. the way they are expected to manage it’s catastrophic, it’s far too short a “On the performance side, assets to the highest of standards. time period to make any decisions,” charities should be looking at But with so many risks to take he adds. performance on a long-term basis into consideration, it can often against a targeted return, and on be difficult to establish an order Diversification a medium-term basis against a of priority and, in many cases, With some of the aforementioned benchmark as well as an appropriate make quick and hasty decisions. considerations in mind, it is perhaps peer group. With this in mind, and given the more important than ever for “If your manager is not specific needs and financial charities to look to diversify performing in-line with each of these requirements of charities, it is portfolios to ensure inclusivity of comparators, then can they explain perhaps not overly surprising that ethical and sustainable investments, why that is? If you’re not happy research conducted by Charity Times and to minimise the chances of with the level of service or the and Smith & Williamson earlier this grave performance risks. performance – or of course, a year revealed almost half of trustees “Brexit has highlighted charities’ combination of the two – then it’s said they would become concerned potential over-exposure to the UK time to review.” ■
www.charitytimes.com 41
InvestmentAgenda.indd 3 06/12/2018 17:41:04 Investment ESG
advertorial Tackling ESG issues: good and bad practices
Embracing and addressing ESG issues is crucial for any charity, but what are defined as
good and bad practices? WRITTEN BY PAUL FAIRBROTHER, BUSINESS PARTNER, SARASIN & PARTNERS
s an increasing number rarely consider the broader policy companies, but also in wider ‘policy of UK charities seek to issues that may harm their clients. work’, which will shape the Ainvest more responsibly and Above all, trustees need to beware of investment landscape delivering address environmental, social and ‘greenwashing’ from managers who more sustainable returns. governance (ESG) issues within jump on the ESG bandwagon and As companies grow, their their endowment portfolios, it seems make statements that may not stand influence over society spreads. right to ask if they are getting what up to scrutiny (see table below). Executives of the world’s biggest they want from the asset Beware also those that ‘outsource’ companies arguably exert more management industry. and rely on external agencies for influence than the governments of What are the good and bad their ESG work. The recent case of many countries. One of the most practices when it comes to the Nissan and the falsifying of controversial topics is executive pay ‘stewardship’ of your assets? How emissions data at five of its plants, and here, as in many areas, we find can a charity identify together with the arrest of its too few managers willing to stand up ‘greenwashing’? (A term coined by chairman, Carlos Ghosn, on to the power of company boards. All environmentalist Jay Westerveld in allegations of financial misconduct, too often, they simply vote with 1986 to describe misleading highlight the issue. management’s recommendations. corporate environmental claims). Until recently, Nissan was graded The Financial Times conducted a Asset managers have to step up their ‘B’ on ESG factors by MSCI and survey last year, which showed that reporting of ESG issues, particularly only downgraded to their lowest the world’s largest fund managers around climate change, and clients score ‘CCC’ in September 2018, voted in favour of pay awards more need to hold their asset managers even though the governance failings than 90% of the time. So far this firmly to account. have been evident for some time. year, Sarasin & Partners’ has voted In the broadest sense, it is possible Rather surprisingly, MSCI still grade against 42% of pay resolutions in the to split the attributes between those Renault as an ‘A’, despite the very UK and 50% in the US. managers one might describe as close links and cross-shareholdings This is not just about voting on ‘careful’ from those who appear too between the companies. ESG should Annual General Meeting resolutions. ‘careless’. A careful and responsible be a fundamental part of the risk and Asset managers should also address asset manager should think long- reward analysis of every company wider environmental and societal term, consider the broader – and and there is no short cut to doing the issues. No company is perfect and often complex – relations between work yourself. nearly all have exposure to ‘negative society and a business and engage We believe that stewardship is a externalities’, a term coined by actively with companies to drive mindset, which means thinking like economists to describe costs which positive change. owners of a business, and not simply are imposed on others without In contrast, the ‘careless’ brigade traders of shares. A key element of adequate compensation. This could often over-simplify to make their active management is engagement. It be, for instance, harmful air or water lives easier, spend little time and is important to speak out as emissions. Businesses that do this resource actively engaging and shareholders, both in relation to can be accused of exploiting ‘natural
42 www.charitytimes.com
SarasinsAdvertorial.indd 2 05/12/2018 17:39:54 Investment ESG
identify climate risks. For these clients, we will divest from any company where we do not believe enough progress is being made. Many managers focus too narrowly just on fossil fuel companies, but it is a wider issue across the investment spectrum from ‘producers to users to consumers’ and affects many different businesses. So far, we have written to 35 companies seeking a commitment to the Paris goals and capital’ or exploiting ‘social capital’ share prices fall. an alignment with a pathway to make ‘financial capital’. The greatest environmental towards zero net emissions. In our Take the example of consumer challenge and externality of them all follow up conversations with company Coca-Cola, where obesity is climate change. The major companies, too often we are told that and plastic packaging are serious governments of the world finally no other investor has asked this problems. The company clearly agreed some common targets at the question. recognises these risks and discloses UN Paris Summit in December 2015 This is not to say that other them in their annual ‘10K’ filing with a pledge to “keep a global institutional investors are not active. with US regulators: “obesity temperature rise well below 20C and Several are, and we form alliances concerns may reduce demand for pursue efforts to limit even further to with like-minded investors to some of our products” and that 1.50C”. Sadly, adding up the pledges increase the power of our voice “changes in laws on beverage made so far still results in more than wherever we can. For example, we packaging could increase costs”. a 30C increase and many predictions are co-coordinators, alongside the They are aware of these threats to suggest it could be even worse. Church Commissioners, of a large their business and one could argue Serious action is needed to radically group of investors’ engagements that they could have responded by transform the energy system by with European oil and gas adjusting product lines with more reducing our net emissions to zero. companies under the Climate Action diet variants and announcing a new Policies to tackle climate change 100+ initiative, which brings global ambition to “collect and will have to ratchet-up dramatically together over 300 investors and $32 recycle a bottle or can for every one and we do not believe investment trillion of invested assets. We are we sell by 2030”. markets are yet discounting this also leading an investor initiative to They embrace the concept of the properly. challenge companies and their circular economy, where everything Everyone needs to play a part in auditors to ensure they are reporting gets recycled instead of thrown driving change and that must include to shareholders in a way that takes away. The question is whether these both asset owners and asset account of the Paris Climate Accord. companies are acting quickly or managers. At Sarasin & Partners, All such efforts should be widely resolutely enough and should focus climate change is clearly identified encouraged, while greenwashes need on reducing, not recycling, waste. as one of our five ‘mega-themes’, to be robustly challenged. ■ Taking action faster will likely cut which will shape investment markets profits (and therefore management in the decade to come. incentive payments), so the cynic An increasing number of our would argue they are simply putting charity clients have signed up to our off the pain for as long as they can. ‘Climate Active’ strategy, which Ultimately, companies who do not combines divestment and consider their harmful externalities engagement to persuade companies could see sales and profits suffer and to take faster action where we
www.charitytimes.com 43
SarasinsAdvertorial.indd 3 05/12/2018 17:39:56 Video Q&A
interview 2018 Newton Charity Investment Survey The results from the Newton Charity Investment Survey 2018 have been revealed. Jeremy Wells discusses the key findings with Lauren Weymouth
n a series of three videos, Charity Times editor, Lauren Weymouth, Idiscussed the findings of the 2018 Newton Charity Investment Survey with Jeremy Wells, client director for charities and specialist institutions at Newton, and author of the survey report. The videos focused on three topics: sustainability, engagement and diversity.
Charities have for a long time been interested in socially responsible investing and incor- porating environmental, social allows for a range of offerings to In this context, we have ‘red lines’ and governance (ESG) factors in cater for different appetites. that ensure that the companies that investment decisions, but there we choose to invest in do not violate has recently been a lot of talk How does Newton interpret the UN Global Compact’s ten about the new concept of ‘sus- sustainable investing? principles which promote tainable investing’. What does To us, sustainable investing is about responsible corporate citizenship this term mean to charities? putting ESG considerations at the (relating to areas such as corruption, The survey produced a range of core of our investment process. labour standards, human rights and answers to this question. The most Since our inception 40 years ago, the environment). We also think that popular was investing in companies we have used a global thematic companies with characteristics contributing to sustainable investment process, which actively which make them incompatible development goals. Other recurring incorporates the consideration of with the aim of limiting global responses included having a low ESG issues. We have been warming to 2°C have no place carbon portfolio, climate change conducting formal ESG reviews on in our sustainable portfolios. investing, having ethical restrictions, recommended securities since 2005, In addition, we incorporate a and divesting from companies that and have continued to enhance and tobacco exclusion as we do not breach norms and standards, or do develop this process. Our sustainable view tobacco businesses as not respond well to engagement. strategies adopt the fundamental compatible with our commitment to Impact investing was much lower principles captured by our integrated sustainable investment. down. It is interesting that people ESG approach, and then amplify the We also look at how companies have different perspectives as this responsible investment requirements. are trying to improve themselves,
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NewtonAdvertorial.indd 2 06/12/2018 16:46:01 Video Q&A
and positively encourage companies impact on company behaviours, compared to other areas of UK civil to move towards a better future. The but what about its effect on society. Women make up 37% of most direct form of engagement is investment performance? trustee board members in the 2018 taking an equity stake and voting. In terms of investment performance, survey, up from 31% in 2015. This However, we also believe that using more than half (60%) of charities felt compares well with the human interaction to maintain a ESG engagement had a minor representation of women on the meaningful dialogue with a company impact on the performance of their boards of FTSE 100 companies in is vital in helping to deliver better portfolios, with a further 10% feeling the UK, which according to the latest outcomes for shareholders, that there was a major effect. data currently stands at 30.6%**. companies and society as a whole. Perhaps surprisingly, 59% of Gender diversity and gender charities felt the impact of ESG equality have attracted a lot of One of the principal reasons engagement on investment attention in 2018, but other aspects for incorporating analysis into performance was likely to be of diversity are also coming under an investment approach is negative, implying that while greater scrutiny. How are charities the potential to engage with charities believe it is important to represented here? companies on ESG issues. take ESG factors into account when Over the last year, charities have Do charities support such investing, and to engage to change become more concerned that overall an approach? company behaviours, they feel this diversity is not well reflected on In our 2018 charity investment engagement may come at some their trustee boards. Over half of survey, the vast majority of charities investment cost. respondents (53%) in the latest felt there was at least some impact However, such findings are at odds survey stated that diversity was not on company behaviours resulting with our own research, which adequately reflected, compared with from ESG engagement: 68% felt suggests that active engagement can 41% in 2017. The larger the charity, there was a minor impact, and a actually have a positive effect on the greater this feeling seems to be: further 20% felt the impact was investment performance. A 2015 67% of charities with £101-500 major. As a follow-up question, we research paper from the Centre for million in assets said that diversity asked if the change in behaviour was Endowment Asset Management at was not adequate, compared to 47% generally positive or negative: again, the Cambridge Judge Business of charities with assets of less than an overwhelming majority (92%) of School looked at the success of £20 million. Charities’ concerns in charities felt the changes were engagements from a single asset this area are justified by the positive. Clearly charities believe manager with 613 public US responses to two new questions in that engaging with companies to companies over a 10-year period. this year’s survey: just 4% of trustee improve their ESG credentials works The study concluded that successful board members in 2018 are black and is worthwhile. engagements led to meaningfully and minority ethnic (BME), while We also asked charities what they improved financial and share-price 7% are under the age of 40. ■ felt was the best approach to dealing performance, alongside better with companies that score ‘badly’ governance. * You can view the full videos at on ESG criteria: by far the most charitytimes.com. prevalent response was to engage Diversity issues have been very with/pressure a company to change prominent across society in 2018. To download the full 2018 Newton its behaviour (73%), a response that Are women well represented on Charity Investment Survey report, was almost three times more popular charity trustee boards? visit newtonim.com/charitysurvey than to exclude the company from an We revisited the topic of gender investment portfolio (27%). diversity in our survey. The good news is that the UK charity sector Clearly charities believe continues to lead the way on gender engagement can have a positive diversity at trustee board level
* Source: Dimson, Li and Karakas (2015), Centre for Endowment Asset Management (study of 613 US companies, 1999-2009) * * Source: 30% Club, November 2018
www.charitytimes.com 45
NewtonAdvertorial.indd 3 07/12/2018 12:06:16 Asset Risk Consultants Column
investment
ost charity investors will be familiar with the concept Too many cooks? mof diversification, the nearest thing in investing to a free Many hands make light work… or do too many cooks lunch. Harry Markowitz developed the idea in his paper “Portfolio spoil the broth? WRITTEN BY mark jeffries, director, Selection” in 1952, which became arc consultants the foundation of Modern Portfolio Theory (‘MPT’). broth be spoilt? comprised from over 60,000 The essence of the concept is Getting in the mix portfolios with a risk relative that the price of different assets Is there any benefit from engaging to world equities of between 60% behave differently in response more than one discretionary and 80%. It represents the broad to changing market conditions; manager, and if so, how many set of opportunities available to that is to say, they are not perfectly should be appointed to achieve charity investors. correlated. On average, in a portfolio the maximum benefit? To examine of diverse assets, the rise and fall this question, three approaches are Random Rupert in the price of the differing assets considered to building aggregate Rupert believes that it is not possible will tend to smooth the performance portfolios based on the performance systematically to pick out- of the portfolio as a whole. As a of the discretionary managers in the performing managers and that, over result the investor can experience ARC Sterling Steady Growth risk the long term, managers will deliver less volatility whilst achieving universe. For simplicity, it is similar outcomes, so he selects his equivalent returns – the free lunch. assumed that monies are split managers at random. Despite limitations in the theory, equally across managers and there Zooming in on the Steady it remains an essential component are no additional overhead costs. Growth manager outcomes (the of many approaches to building Figure A shows the five year blue dots in figure B), the chart portfolios. Sterling PCI universe to September shows the typical risk and return In this article, we mix our 2018, with Steady Growth manager when randomly selecting a given metaphors and consider whether the outcomes shown in blue and the number of managers same ideas can be applied to median result shown in white. The The results show how adding selecting investment managers; can outcomes for other risk categories managers diversifies risk, with the many hands of more than one are shown in grey. risk falling by c.5% when all manager enhance performance The Sterling Steady Growth managers are included compared through further diversification; or as universe includes more than 50 to the median. Much of the benefit indicated by Warren Buffett, will the discretionary managers and is is derived from selecting a small Figure A Figure B
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ARC-Column.indd 2 06/12/2018 10:53:21 Asset Risk Consultants Column Figure C Figure D
number of managers with around on what is possible from adopting a random, it was possible to obtain a two thirds of the benefit achieved diversified approach. ‘naïve’ risk reduction of c.3% with four managers in the portfolio. The best result for a portfolio when selecting four managers of four managers has lower risk than compared to a single manager. Sensible Susan the random approach and improved • Selecting managers with differing Susan believes that it should returns of c.1.5 percentage points per investment styles shows the risk be possible to improve outcomes annum compared to the diversified reduction increasing to c.12% by taking advantage of the approach resulting in risk-adjusted when selecting four managers, diversification benefit, so instead of performance that exceeds any with a similar expected return to simply picking managers at random, individual manager outcome in the the median manager. she selects managers that each have Steady Growth universe. • With skill and perhaps some luck, different investment styles. Overall, the results show that by it is possible to achieve the free By selecting managers with applying skill in selecting managers lunch, with the optimal selection different styles and uncorrelated and actively seeking to benefit from of managers achieving both lower returns, it would have been possible the risk reduction arising from risk and superior risk-adjusted to reduce risk by c.17% compared to diversification that it is possible to returns compared to that available the median outcome. The maximum achieve the free lunch. from the median manager and reduction in risk was achieved with from a combination of all ten managers included in the Conclusions managers in the Sterling universe. portfolio. However, even with only In this article, we have considered • So prima facie, the adage ‘many four managers included, it was whether there are benefits to hands make light work’ would possible to improve on the ‘naïve’ employing more than one charity seem to carry the day. However, in risk benefit of the random approach discretionary manager, so which of practice, the assumption of no of c.3% by a further nine percentage the metaphors is right, do too many additional fees is not realistic. points to c.12%. cooks spoil the broth or do many Given the tiered nature of fee hands make light work? schedules and additional Skilful Steve • Without employing any skill, administration costs, might these Steve has the gift of perfect simply selecting managers at ‘spoil the broth’? With the foresight, and was able to select potential to enhance returns by the most skilful managers with c.1.5 percentage points per annum, the highest possible risk adjusted With Skill and perhapS the analysis indicates that with return when combining managers manager selection skill, and some in equal weights. As such, the purple Some luCk, it iS poSSible luck, blending managers is a dot in figure D shows the upper limit to aChieve the free lunCh sensible strategy. ■
www.charitytimes.com 47
ARC-Column.indd 3 07/12/2018 12:05:06 Charity funds Data
investment
Multi-Asset Funds Investment Fund Cash % Bond % Equities Property % Other % Return Share Class
Manager Size (£m) UK % Intl % Last quarter Last 12 months YTD 2018 Last 3 years Last 5 years Last 10 years Barclays Charity Fund Barclays 204 0.9 11.4 47.6 30.8 4.7 4.7 1.4 7.4 2.9 41.5 46.1 - Inc Armed Forces Common Investment Fund BlackRock 370 10.8 11.4 30.3 33.8 7.7 5.9 2.2 6 2.2 36.8 53.4 127.8 Acc Charifaith BlackRock 164.3 8 16.6 25.7 32.3 7.1 10.3 2.3 8.5 5 38.6 52.4 124.6 Acc Charity Multi-Asset Fund2 Cazenove 600.4 2.9 1.2 26.1 37.8 10.1 21.9 1.1 5.3 2.3 31.4 37 99.5 Acc CBF Church of England Investment Fund CCLA 1,428.60 4.6 2.9 17.6 52.5 4.5 18 4.8 13.8 9 49.7 72.9 168.4 Inc COIF Charities Ethical Investment Fund CCLA 614.3 4.5 1 18.6 52.7 4.3 18.9 4.8 12.5 8.7 46.5 66.3 - Inc COIF Charities Investment Fund CCLA 2,281.60 4.5 3.3 18.3 53.2 4.4 16.3 4.8 12.6 8.5 46.8 68.9 157.2 Inc Amity Balanced Fund for Charities EdenTree 21.5 6.2 28.9 35.3 24.2 - 5.4 1.1 1.2 -0.5 22.8 40.1 - Inc National Association of Almshouses CIF M&G 186.7 5.4 12.9 53.3 28.5 - - 0.7 4.1 1.1 34.9 45.6 135 Inc Newton Growth & Income Fund for Charities Newton 723.6 5 11.6 42.4 41 - - 3.6 12 7 46.7 69.6 168.9 Inc Newton SRI Fund for Charities Newton 111.4 4.8 16.5 31.9 46.8 - - 2.8 9.1 6 43.6 52.2 - Inc Newton Growth Fund for Charities Newton 58.6 7.5 17.6 31.7 42.4 - 0.8 3.6 9.2 6.7 40.9 - - Inc Active Income and Growth Fund for Charities Rathbones 191.9 5.2 16.9 26.6 34.2 8.7 8.5 1.4 8.4 4.3 37.3 45.9 - Inc Core Investment Fund for Charities Rathbones 101.4 2 9.2 37 37.6 5.9 8.5 2 6.6 3.1 - - - Inc Charity Assets Trust Ruffer 99.5 9 39 13 28 - 11 0.2 2.6 -0.3 14 23.1 - Acc Sarasin Endowments Fund2 Sarasin & Partners 1,685.20 3.8 13.4 19 49.1 9 5.7 3.3 6.5 3.2 33.2 45 123.9 Inc Sarasin Income & Reserves Fund2 Sarasin & Partners 146.6 3 74.4 9.4 9.8 1.3 1.9 0.4 0.8 -0.8 14.7 25.8 76 Inc
Peer Group Indices Peer Group Indices Sterling Cautious Charity Index ARC 24.6 36.9 2.6 8.5 1.4 26.1 0.4 0.9 -0.2 9.3 16.2 51.7 Sterling Balanced Asset Charity Index ARC 13.9 25.8 24.8 15.9 1.5 18.1 1 3.9 1.5 22.6 31.1 88.6 Sterling Steady Growth Charity Index ARC 7.8 18.3 39.7 22.5 1.6 10.2 1.4 5.6 2.3 31.3 39.7 112.9 Sterling Equity Risk Charity Index ARC 3.4 10.1 49.6 26.4 2.2 8.3 1.5 6.4 2.8 36.8 44.8 129.4
Market Indices1 Market Indices1 UK Equities iShares -0.7 6 0.9 39.3 40 123.7 International Equities iShares 5.9 14.2 9.3 70.8 94 215.3 UK Sovereign Bonds iShares -1.8 0.5 -1.4 8.9 24.1 65.7 UK Corporate Bond iShares -0.2 -0.2 -2.4 16.7 30.3 89.7 UK Property iShares -5.1 3.1 -4.6 -4.4 39.1 47.4 Cash - 0.1 0.4 0.3 0.9 1.6 5.5
48 www.charitytimes.com
ArchData.indd 3 07/12/2018 13:25:06 Charity funds Data
investment Source / Asset Risk Consultants Source Risk / Asset Multi-Asset Funds Investment Fund Cash % Bond % Equities Property % Other % Return Share Class
Manager Size (£m) UK % Intl % Last quarter Last 12 months YTD 2018 Last 3 years Last 5 years Last 10 years Barclays Charity Fund Barclays 204 0.9 11.4 47.6 30.8 4.7 4.7 1.4 7.4 2.9 41.5 46.1 - Inc Armed Forces Common Investment Fund BlackRock 370 10.8 11.4 30.3 33.8 7.7 5.9 2.2 6 2.2 36.8 53.4 127.8 Acc Charifaith BlackRock 164.3 8 16.6 25.7 32.3 7.1 10.3 2.3 8.5 5 38.6 52.4 124.6 Acc Charity Multi-Asset Fund2 Cazenove 600.4 2.9 1.2 26.1 37.8 10.1 21.9 1.1 5.3 2.3 31.4 37 99.5 Acc CBF Church of England Investment Fund CCLA 1,428.60 4.6 2.9 17.6 52.5 4.5 18 4.8 13.8 9 49.7 72.9 168.4 Inc COIF Charities Ethical Investment Fund CCLA 614.3 4.5 1 18.6 52.7 4.3 18.9 4.8 12.5 8.7 46.5 66.3 - Inc COIF Charities Investment Fund CCLA 2,281.60 4.5 3.3 18.3 53.2 4.4 16.3 4.8 12.6 8.5 46.8 68.9 157.2 Inc Amity Balanced Fund for Charities EdenTree 21.5 6.2 28.9 35.3 24.2 - 5.4 1.1 1.2 -0.5 22.8 40.1 - Inc National Association of Almshouses CIF M&G 186.7 5.4 12.9 53.3 28.5 - - 0.7 4.1 1.1 34.9 45.6 135 Inc Newton Growth & Income Fund for Charities Newton 723.6 5 11.6 42.4 41 - - 3.6 12 7 46.7 69.6 168.9 Inc Newton SRI Fund for Charities Newton 111.4 4.8 16.5 31.9 46.8 - - 2.8 9.1 6 43.6 52.2 - Inc Newton Growth Fund for Charities Newton 58.6 7.5 17.6 31.7 42.4 - 0.8 3.6 9.2 6.7 40.9 - - Inc Active Income and Growth Fund for Charities Rathbones 191.9 5.2 16.9 26.6 34.2 8.7 8.5 1.4 8.4 4.3 37.3 45.9 - Inc Core Investment Fund for Charities Rathbones 101.4 2 9.2 37 37.6 5.9 8.5 2 6.6 3.1 - - - Inc Charity Assets Trust Ruffer 99.5 9 39 13 28 - 11 0.2 2.6 -0.3 14 23.1 - Acc Sarasin Endowments Fund2 Sarasin & Partners 1,685.20 3.8 13.4 19 49.1 9 5.7 3.3 6.5 3.2 33.2 45 123.9 Inc Sarasin Income & Reserves Fund2 Sarasin & Partners 146.6 3 74.4 9.4 9.8 1.3 1.9 0.4 0.8 -0.8 14.7 25.8 76 Inc
Peer Group Indices Peer Group Indices Sterling Cautious Charity Index ARC 24.6 36.9 2.6 8.5 1.4 26.1 0.4 0.9 -0.2 9.3 16.2 51.7 Sterling Balanced Asset Charity Index ARC 13.9 25.8 24.8 15.9 1.5 18.1 1 3.9 1.5 22.6 31.1 88.6 Sterling Steady Growth Charity Index ARC 7.8 18.3 39.7 22.5 1.6 10.2 1.4 5.6 2.3 31.3 39.7 112.9 Sterling Equity Risk Charity Index ARC 3.4 10.1 49.6 26.4 2.2 8.3 1.5 6.4 2.8 36.8 44.8 129.4
Market Indices1 Market Indices1 UK Equities iShares -0.7 6 0.9 39.3 40 123.7 International Equities iShares 5.9 14.2 9.3 70.8 94 215.3 UK Sovereign Bonds iShares -1.8 0.5 -1.4 8.9 24.1 65.7 UK Corporate Bond iShares -0.2 -0.2 -2.4 16.7 30.3 89.7 UK Property iShares -5.1 3.1 -4.6 -4.4 39.1 47.4 Cash - 0.1 0.4 0.3 0.9 1.6 5.5
Key 1 The asset allocations presented are based on estimates provided by ARC. The estimates are calculated using statistical methods that attempt to derive a model portfolio whose historical returns most closely match the actual ACI results.
www.charitytimes.com 49
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The Association of Chief Executives of Voluntary Organisations (ACEVO) supports ACEVO members by providing access to: Regent’s Wharf • Third sector leadership and governance resources to support boards and senior 8 All Saints Street management teams London • Information, publications and reports on key third sector issues N1 9RL • Conferences, courses and networking opportunities to enhance skills and T: +44 (0) 20 7280 4960 build knowledge F: +44 (0) 20 7280 4989 • Dedicated helplines and support services such as CEO in Crisis - a service for third E: [email protected] sector CEOs facing disputes with their board. ACEVO also acts on behalf of members; connecting members to key contacts in government.
Charity Finance Group Charity Finance Group (CFG) is the charity that champions best practice in finance management in the charity and voluntary sector. Our vision is of a financially 15-18 White Lion Street confident, dynamic and trustworthy charity sector. With this aim in sight, CFG delivers London services to its charity members and the sector at large which enable those with N1 9PG financial responsibility to develop and adopt best practice. T: 0845 345 3192 With more than 1,300 member charities, managing over £19.3 billion, we are uniquely F: 0845 345 3193 placed to challenge regulation which threatens the effective use of charity funds, drive Company Registration No. 3182826 efficiency and help charities to make the most out of their money. Charity Registration No. 1054914 For more information please visit www.cfg.org.uk
The Institute of Fundraising (IoF) is the professional membership body for fundraising in the UK. Institute of Fundraising Our vision: Excellent fundraising for a better world Charter House 13-15 Carteret Street Our mission: Creating the environment and understanding for fundraisers to excel London SW1H 9DJ We support our individual members, organisations as well as the fundraising community and the general public and donors through: T: +44 (0) 20 7840 1000 • Leadership and representation Twitter: @ioftweets • Best practice and compliance • Education and networking Facebook: www.facebook.com/ • Championing and promoting fundraising as a career choice. instituteoffundraising We are a charity that supports charities and public benefit organisations in connecting donors www.institute-of-fundraising.org.uk and supporters with the causes they care passionately about. Excellent fundraising is the essential ingredient that enables us to make the world a better place. Find out how we can enable you to be the best fundraiser you can be.
BANKING
Charity Bank Limited If you could borrow from a bank run for and owned by charities and social purpose organisations, would you be interested? Fosse House, 182 High Street, Tonbridge, Kent, TN9 1BE Every single one of our shareholders is either a charitable trust, foundation, or social purpose organisation: our mission is to support your mission. Call our lending team: You can apply for loans from £50,000 to £3.25 million and more in partnership with T: 01732 441919 other lenders. E: [email protected] W: charitybank.org We offer loans to support your organisation, a deep interest in what you do and a team of regional managers that is there to be your partner in doing good. Twitter: @charitybank Facebook: /charitybank Talk to our lending team to enquire about a loan. Suppliers Directory Suppliers Directory
To advertise in Suppliers Directory contact Linda Libetta +44 (0)20 7562 2431
BANKING
Triodos Bank offers a fresh approach to banking. Our mission is to make money work for Triodos Bank positive social, environmental and cultural change. Deanery Road We do this by only lending money to businesses and projects which benefit people and Bristol BS1 5AS the planet, including charities and community groups. T: + 44 (0)800 328 2181 This means our depositors know their money is used to make a positive impact, while still E: [email protected] receiving a fair return. And the charities we lend to receive informed advice, based on our W: www.triodos.co.uk team’s in-depth understanding of how to balance financial and ethical business objectives. We offer a range of services for organisations of all sizes, including: • Term loans and overdrafts • Deposit and current accounts • Corporate finance (capital raising) Visit triodos.co.uk to find out more.
Looking for a bank that understands your charity? Unity Trust Bank plc Unity Trust Bank was rated No.1 for Sector Knowledge in an independent charity Nine Brindleyplace banking survey (2014) and was also rated top for Relationship Managers, Fees and Birmingham Charges and Meeting Expectations. B1 2HB Currently, around 7,000 charities bank with Unity and over 50% of our lending last T: 0345 140 1000 year was to charitable organisations. E: [email protected] Established in 1984, positive social impact and financial sustainability were part of our founding principles. Today, more than 30 years later, they remain core to what we stand for. If you’re a charity, look no further – we’re on the same page.
FUNDING
PayPal Giving Fund PayPal Giving Fund is a registered charity (No. 1110538) that raises millions of Whittaker House, pounds each year to benefit UK charities. We enable people to give through Whittaker Ave, programmes operated by PayPal, eBay, Humble Bundle and other leading internet Richmond, Surrey businesses. PayPal Giving Fund receives funds donated through these platforms TW9 1EH, UK and seeks to grant them to charities recommended by donors. W: paypalgivingfund.org.uk Contact us at: [email protected]
HR & EMPLOYEE BENEFITS
Affordable health insurance from a not-for-profit mutual CS Healthcare We’ve been dedicated to protecting the health of our members for over 85 years. Princess House, Horace Rd, As a mutual society, our members are at the heart of everything we do and, unlike commercial Kingston upon Thames KT1 2SL insurers, we don’t have any shareholders. We provide a range of health insurance policies to suit your needs and budget, covering individuals and groups. T: 0800 917 4325 W: www.cshealthcare.co.uk/charitytimes Visit www.cshealthcare.co.uk/charitytimes for more information.
Advertise your services directly to our subscribers using our Suppliers Directory
If you are a supplier to the charity and not-for-profit sector and want to maintain consistent visibility amongst potential customers then why not include your company within the suppliers section of Charity Times. Your entry would be listed for 12 months (print & online) and includes company logo, contact details and company description/products.
Charity decision makers use this section to find suitable expert suppliers. So call us on 0207 562 2431 with your details and we will create a listing to ensure that your company is visible within this valuable resource. Call us on 0207 562 2431 www.charitytimes.com Suppliers Directory
To advertise in Suppliers Directory contact Linda Libetta +44 (0)20 7562 2431
INSURANCE
At Ecclesiastical, we’ve been insuring not for profit organisations for 125 years. Today, Ecclesiastical Insurance Office we insure thousands of the nation’s charities of all sizes and complexities. Beaufort House Voted best charity insurer* for the last five years running by both charities and brokers, Brunswick Road we’ve worked closely with both to develop a flexible, specialist product that meets the Gloucester GL1 1JZ varying needs of different types of charities. Visit our website or talk to your We also offer a complete package of guidance and advice that’s there to give you broker to find out more. support when you need it. T: 0845 850 0307 Speak to your broker for more information or visit www.ecclesiastical.com/CTimes E: [email protected] * In research conducted by FWD, an independent market research company, of those brokers and organi- W: www.ecclesiastical.com/CTimes sations who named an insurer in the survey, the majority voted Ecclesiastical as the best insurer for charity
Stackhouse Poland look after 400 charities and “not for profit” organisations in the UK. Stackhouse Poland Limited Our specialist team arrange a broad range of insurance programmes for our charity clients, Blenheim House including property and liability as well as motor, charity trustee cover and travel policies for aid workers, etc. 1-2 Bridge Street Guildford The Company also arranges insurance for a large number of corporate clients and has a Surrey specialist private client division advising affluent and High Net Worth clients on their personal GU1 4RY insurance needs. Please see our website for the video outlining our services to the Charity sector or contact us to T: 01483 407 440 discuss our 10 point Charity checklist for Insurance. F: 01483 407 441 W: www.stackhouse.co.uk Insurance Broker of the Year 2013 Independent Regional Broker of the Year 2007 Finalist Independent Regional Broker of the Year 2009
Unity Insurance Services Insurance for charities with 100% of our profits returned to charity. Suite 8 The Quadrant 60 Marlborough Road As a charity owned insurance broker, Unity Insurance Services has a unique insight Lancing Business Park into your sector. For over 80 years, we have been protecting the people, property, Lancing, West Sussex liabilities and activities of charities. BN15 8UW We view each charity as unique so we always aim to provide solutions that fit your T: 0345 040 7702 exacting needs. That’s why we will spend the time to understand in detail your F: 0345 040 7705 activities and risks to obtain the best possible cover at the best possible price. E: [email protected] Visit our website or telephone to us to find out more. W: www.unityinsuranceservices.co.uk/ charity-insurance
INVESTMENT MANAGEMENT
Cerno Capital works closely with charities, helping them organise and manage their Cerno Capital Partners LLP investment portfolios. 34 Sackville Street, St James’s It is our view that the only way to obtain a reliable investment return is to identify London W1S 3ED the prevailing macro-economic themes and then follow a robust methodology for For more information, please contact selecting investments. We take a real world approach to risk, concentrating on the Mustafa Abbas, Nick Hornby, risks of losing money and not just the measurement of volatility. James Spence We invest globally, across multiple asset classes and take a long term outlook to T: 0207 382 4112 wealth preservation and growth. E: [email protected] We act as both discretionary managers and advisors to charities. W: www.cernocapital.com
Charles Stanley & Co. Limited A personal service shaped around you 55 Bishopsgate London EC2N 3AS • We currently manage £24.9bn* across a broad range of clients Nic Muston - Director of Private Clients • Of which our Charity team manage £1.56bn* on behalf of over 800 charities & Charities • We provide a bespoke solution for each client, as well as a direct relationship E: [email protected] with a dedicated fund manager T: 020 7149 6610 • We use a distinctive investment approach within a robust risk framework as well as offering environmental, social and governance screening Robert Winterton - Business Development • We work closely with our clients supporting them by providing both policy Executive - Charities, Intermediary Sales guidance and trustee training E: [email protected] • With our 20 regional offices we are close by to support your needs T: 020 7149 6265 *as at 31/12/17 www.charles-stanley.co.uk Investment involves risk, investors may not get back what they originally invested. Charles Stanley & Co. limited is authorised and regulated by the Financial Conduct Authority. Suppliers Directory
To advertise in Suppliers Directory contact Linda Libetta +44 (0)20 7562 2431
INVESTMENT MANAGEMENT
EdenTree Investment Management Ltd Profit with principles 24 Monument Street That is what we aim to deliver. We believe that a company’s business activity, it’s London environmental and community impact and the way it interacts with its stakeholders can EC3R 8AJ all positively contribute to returns. This is why these factors are integral to our responsible investment process and why EdenTree Investment Management has won numerous Philip Baker awards for its performance. Head of Institutional Business Development T: 0800 032 3778 Call us to discuss how investing responsibly will benefit your charity, learn how our E: [email protected] charitable ownership helps us see things from your perspective and how your investment W: edentreeim.com can make a real difference. EdenTree Investment Management Ltd is authorised and regulated by the Financial Conduct Authority.
Epworth Investment Management Christian Ethical Investment – for Churches and Charities Limited We are dedicated to serving the needs of Churches and Charities and currently 9 Bonhill Street, London manage around £1.3bn. EC2A 4PE What makes us different is how we do it. Our Christian ethical approach looks to Mark O’Connor identify sustainable companies with attractive return prospects. We then engage to Head of Business Development positively influence their behaviour and ensure they are acting in a responsible way. T: 020 7496 3639 For good returns that faithfully meet your ethical requirements, please get in touch. E: [email protected] Epworth Investment Management Limited (“Epworth”) is authorised and regulated by the Financial Conduct Authority. Data as at 31/12/17.
Investing for impact, with values Lombard Odier (Europe) S.A. Lombard Odier is an independent investment manager with a 200-year history of providing Queensberry House, stability and investment innovation. Our team provides specialist advice to charities, as well as: 3 Old Burlington Street, London, W1S 3AB • Bespoke investment services tailored to the priorities of your charity Contact: Tom Rutherford, Head of Charities • Risk-based investment strategy designed to limit fluctuations in portfolio value T: 020 3206 6156 • Custody services, providing online access and transparent reporting on portfolio E: [email protected] performance W: www.lombardodier.com/ukcharities
Disclaimer: The bank is authorised and regulated by the CSSF in Luxembourg and its branch in the UK by the Prudential Regulation Authority and the Financial Conduct Authority
M&G Investments, With M&G, you’re free to choose from two specialist pooled funds for charities, M&G Charities Department Charifund and Charibond, or alternatively, invest across our wide range of OEIC funds. PO Box 9038, Chelmsford CM99 2XF We’ve been managing charitable funds for over 55 years and now look after £1.4 billion* for charities – making us one of the largest and most experienced managers of these T: Richard Macey 020 7548 3731 funds in the UK. The value of investments will fluctuate, which will cause fund prices to or James Potter 020 7548 3882 fall as well as rise and you may not get back the original amount you invested. E: [email protected] *As at 31.03.2016. Issued by M&G Securities Limited who is the fund manager and registered in England W: www.mandg.co.uk/charities No. 90776. The registered office is Laurence Pountney Hill, London EC4R 0HH. M&G Securities Limited is authorised and regulated by the Financial Conduct Authority. Charibond’s charity registered number is 271815, and Charifund’s charity registered number is 249958.
Newton Investment Management At Newton, our sole focus is investment management. We currently manage £53.8 billion for a broad range of clients, of which £4.1 billion is on behalf of charities (as Jon Bell at 31 December 2017). Newton Investment Management BNY Mellon Centre We are a committed and trusted-long-term partner to charities, with a track 160 Queen Victoria Street record of helping them achieve their goals. But we do not stand still: innovation London and thought leadership in the charity sector are fundamental parts of our EC4V 4LA business. We use a distinctive, global thematic investment approach, combined with rigorous analysis of environmental, social and governance issues, in our T: +44 (0)20 7163 2448 specially designed charity pooled funds, sustainable strategies, and segregated E: [email protected] portfolio services. w: www.newtonim.com/charities www.newtonim.com/charities Suppliers Directory
To advertise in Suppliers Directory contact Linda Libetta +44 (0)20 7562 2431
INVESTMENT MANAGEMENT
Quilter Cheviot How do you navigate investment challenges & opportunities? Contact: Charles Mesquita • Over £1.7 billion of charity One Kingsway assets under management London (as at 30/06/2017) WC2B 6AN When it comes to investment, we help • Support for the sector: charity charities by thinking beyond the obvious. t: +44 (0)20 7150 4000 seminars, bespoke investment E: [email protected] training, ethical investment W: quiltercheviot.com expertise and knowledge guides
Quilter Cheviot Limited is authorised and registered by the Financial Conduct Authority
Rathbone Investment Management Rathbones welcomes charities of all shapes and sizes We like to work in partnership with our charity clients which means you will have direct access to the person managing your 8 Finsbury Circus, London EC2M 7AZ charity’s investments, resulting in a portfolio that accurately meets your needs and is as For further information please contact individual as your charity. Key facts James Brennan: • £4.7 billion of charitable funds under management E: [email protected] • Over 1,000 charities T: 020 399 0359 • Segregated or pooled investment • Dedicated team of charity investment specialists W: rathbones.com/ • A history grounded in philanthropy charities Rathbone Investment Management is authorised by the Prudential Regulation Authority All figures as at 31 December 2017. and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
Royal London Asset Management Royal London Asset Management (RLAM) is one of the UK’s leading investment companies for the charity sector. RLAM has built a strong reputation as an innovative 55 Gracechurch Street manager, investing across all major asset classes and delivering consistent long-term London, EC3V 0RL outperformance. RLAM manages over £80 billion of assets, split between equities, fixed Contact: Alan Bunce, Head of Institutional interest, property and cash, with a market leading capability in sustainable investing. Business – Direct RLAM is proud to manage £3.2 billion in assets on behalf of over 170 charity clients. We pride ourselves on the breadth and quality of the investment options we offer, and we T: +44 (0)20 7506 6570 recognise that your main focus is your charitable activity; ours is to construct the best E: [email protected] possible investment portfolio, often in multi-asset solutions, to meet your risk and return www.rlam.co.uk objectives. Whatever your requirements, we are well positioned to offer a solution. RLAM is authorised and regulated by the All data as at 31 March 2015. Financial Conduct Authority.
At Ruffer, we have a distinctive approach to investing which we believe is well suited to the Ruffer LLP needs and goals of charities and their trustees. We focus on delivering ‘all weather’ investment 80 Victoria Street returns and protecting and growing the value of our client’s assets throughout the market London cycle. Instead of following benchmarks, we aim not to lose money in any single year and to SW1E 5JL deliver a return significantly greater than the risk free alternative of cash on deposit. By aiming to avoid the cyclical gyrations of the market, we aspire to provide a less volatile experience for For more information contact: our charity clients. We manage over £22bn of assets, including over £2bn for over 300 charities Christopher Querée, Investment Director – as at 31 December 2017. A dedicated portfolio manager works with each charity to build a Head of Charities portfolio, taking into consideration the charity’s responsible investment concerns, where appropriate. We are a signatory to the UNPRI and regularly host conferences and seminars T: +44 (0)20 7963 8110 designed to bring charitable organisations together, to discuss the key investment challenges F: +44 (0)20 7963 8175 they face. We also manage a Common Investment Fund, the Charity Assets Trust. E: [email protected] Ruffer LLP is authorised and regulated by the FCA
Sarasin & Partners manages approximately 410 charities* with over £6.26billion in & Partners LLP charitable funds*, representing over 45% of the firm’s total Assets under Management. Juxon House We also manage investments for UK private clients, pension funds, and other institutions 100 St Paul’s Churchyard with total funds under management of £13.8 billion* (*as at 30.06.2018). London EC4M 8BU Our particular expertise is determining and reviewing the appropriate mix of asset classes suitable to meet the circumstances of each charity. Contact: John Handford We are well known for our commitment to education having trained over 4,500 trustees. T: 020 7038 7268 The reference for this training is our Compendium of Investment. F: 020 7038 6864 E: [email protected] Sarasin & Partners LLP is a limited liability partnership incorporated in England and W: www.sarasinandpartners.com Wales with registered number OC329859 and is authorised and regulated by the Financial Conduct Authority. Suppliers Directory
ToTo advertise advertise in in Suppliers Suppliers Directory Directory contact contact Linda Sam Ridley Libetta +44 +44 (0)20 (0)20 7562 7562 4386 2431
INVESTMENT MANAGEMENT
Smith & Williamson Smith & Williamson is an independently-owned financial and professional services group, with 1700 people across 12 principal offices in the UK and Ireland. We are a 25 Moorgate leading provider of discretionary investment management services to private clients, London charities and corporates and have around £20.4bn of assets under management and EC2R 6AY advice (as at 31 December 2017). Contact: Sharon Hanshaw Smith & Williamson LLP is regulated by the Institute of Chartered Accountants in T: 020 7131 8214 England and Wales for a range of investment business activities. Smith & Williamson w: www.sandwcharities.com Investment Management LLP is authorised and regulated by the Financial Conduct Authority.
UBS Charity focused, performance driven 5 Broadgate Access all the investment insight and guidance your charity needs through our dedicated team of experts, structured and ethical investment process and worldleading London EC2M 2AN research. Helen McDonald - Director The value of your investments may fall as well as rise as a result of market and currency E: [email protected] fluctuations. You may not get back the amount you invested. T: +44 207 567 0241 Authorised and regulated by Financial Market Supervisory Authority in Switzerland. In the United Kingdom, UBS AG is authorised by the Prudential Regulation Authority and W: www.ubs.com/charities-uk is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
Global. Active. Direct. Waverton Investment Management Waverton has been providing charities with investment solutions that are actively managed, 16 Babmaes Street directly invested and global since 1986. We combine this investment approach with a highly London personal service from charity specialists who take time to understand the unique needs of SW1Y 6AH each client. Contact: Emma Robertson Waverton offers: T: +44 (0) 20 7484 2065 E: [email protected] • A dedicated charity team • Tailored reporting • Direct relationship with portfolio managers • Institutional investment process • Ethical investment screening • Trustee training
Waverton Investment Management Limited is authorised and regulated by the Financial Conduct Authority. The value of investment can fall as well as rise and you may get back less than originally invested.
SOFTWARE PROVIDERS
Advanced Solutions International (ASI) is a recognised global industry thought leader that Advanced Solutions International focuses on helping not-for-profits and associations increase operational and financial (Europe) Ltd performance through the use of best practices, proven solutions, and ongoing client Basepoint Shoreham Centre engagement. Since 1991, ASI has served nearly 4,000 clients and millions of users Little High Street worldwide, both directly and indirectly through a network of over 100 partners, and Shoreham-by-Sea currently maintains corporate offices in the USA, UK, Canada, and Australia. West Sussex Our solution is iMIS 20, an Engagement Management System (EMS)™ that enables your BN43 5EG organisation to engage your donors – and staff – anytime, anywhere, on any device. T: 020 3267 0067 E: [email protected] W: www.advsol.com/UKFund
Simply, bluQube is a comprehensive finance and accounting system designed to assist your bluQube charity in solving every day financial challenges in a practical and simplified way. The Hophouse bluQube has been specifically developed to help charities challenge the way they think about The Old Brewery Business Park finance. 7-11 Lodway Through cloud and browser-based technology with multi-devise access, bluQube transforms Pill finance operations to deliver cross-organisation efficiencies, sophisticated management Bristol information and a different way of seeing finance. With a user friendly interface designed BS20 0DH to provide your core finance team with all the necessary functionality they need, while remaining intuitive for non-finance budget holders and senior management to tap in and E: [email protected] access at a glance information, bluQube will usher in an all new level of efficiency to the way T: 08456 44 77 88 your charity operates. w: www.bluqube.co.uk bluQube finance software is developed by Symmetry, based in Bristol.