16/02/2018 11:12:21 Plus: columns Sectorand investment News Interview: Lent Matt on the CEO First Future The importance of alumni and how partnerships part form of his strategy. future February/March 2018 February/March See page 52 for charity suppliers directory Technology: Technology: security focus Cyber Cybercrime is on the rise Cybercrime be and charities need to keep up with the able to of change. pace Time for for Time a change? skillset could be the key to success. success. to skillset be the key could Trustee diversification is low among the is low diversification Trustee your approach and refreshing your board’s board’s your and refreshing approach your charity sector. In a crowded pool, changing changing pool, In a crowded charity sector. Governance: PR and reputation Haiti scandal has put Oxfam’s sector under increasing the third again and reputations scrutiny be pampered. need to ng efI

T Breakfas BrI www.charitytimes.com Managing investment risks in volatile markets risks in volatile Managing investment Leadership: diversity board Trustee among A lack of diversity requires boards trustee their broaden charities to skills base. governance cover.indd 1 Leadership / PR and reputation / Technology / Cyber security focus / Future First interview / Investment February/March 2018

Editorial Comment

The few are not the many

n North Korea, when citizens are convicted for political crimes, they are Editor Lauren Weymouth immediately sent to prison camps, known as Kwanliso, along with their [email protected] relatives. For citizens who are convicted of more serious political crimes, 020 7562 2411 I life imprisonment is enforced and as a result, two generations of their family Contributing Writers will spend their entire lives in Kwanliso. The whole system forms the North Caron Bradshaw, Peter Lewis, Joe Lepper, Gillian Korean policy of ‘three generations of punishment’. McKay, Antonia Swinson, Matthew Ritchie, The policy, which was introduced by state founder Kim II-Sung back in David Adams, Antony Savvas, Louise Thomson, Mark Jefferies and Graham Harrison 1948, is shocking. After all, why should innocent people suffer punishment for the mistakes of one person? Design & Production But although collective punishment like this isn’t present in the Western Matt Mills [email protected] justice system, the notion of ‘guilty-by-association’ is not too distant from our 020 7562 2406 beloved charity sector. When Kids Company collapsed in 2015, the whole sector felt the brunt of Commercial Manager Linda Libetta it. Donors started to question charities’ spending on admin, expenses and [email protected] shoes for clients. And with that, the trust in charities fell dramatically (p.26). 020 7562 2431 Just as the sector was beginning to recover and claw back what was left of Subscriptions its generous reputation, it’s been kicked to the dirt again. As I write this, it’s [email protected] only been a matter of days since The Times reported allegations of misconduct 01635 588 861 among Oxfam aid workers in Haiti, yet the aftermath has been unstoppable. Subscription Rates (6 issues pa) Oxfam faces losing European funding, its deputy chief executive has stepped £79pa registered charities down, a number of celebrities have retracted their monetary support and the £119pa rest of UK, £127pa EU Charity Commission has launched an investigation into safeguarding. For £132pa elsewhere Oxfam, things couldn’t get any worse. Printed by Buxton Press But the trouble with the charity sector is that the actions of a few really do All rights reserved. The views expressed are not necessarily those of the publishers. affect the masses. Hundreds of thousands of pounds has already been shaved off Oxfam’s annual income due to regular donors cancelling their direct ISSN : 1355-4573 debits, and unfortuantely, I doubt it will be the only charity to lose money in Published by light of this exposé. Perspective Publishing This issue of Charity Times is all about leadership. It’s about building 6th Floor, 3 London Wall Buildings London EC2M 5PD strong, diverse trustee boards; it’s about using your powers to harness a glowing reputation; and about fighting back when things go wrong. More than www.perspectivepublishing.com that, it’s about staying ahead and being prepared. Managing Director While you may not be able to prepare for or prevent the mistakes of others, John Woods you can prepare for yourselves, so that when the next big dog messes up, you Publishing Director don’t all go down with it. Mark Evans

Lauren Weymouth, Editor

Average net circulation of 8,500 copies for July 15 – June 16

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editorial-comment.indd 1 21/02/2018 10:23:57 In this issue Contents

February/March 2018 06 08 16

News & views

Regulars

06 News in brief 10 Appointments

Columns 12 Legislation by Caron Bradshaw 13 Fundraising by Peter Lewis 14 Regulation by Gillian McKay Review Interview 15 Property by Antonia Swinson 16 Matt Lent 8 Mergers Future First CEO Matt Lent tells David 48 Charity fund data Mergers have proved to be a rarity Adams why alumni are so important among the third sector, and charities to the education system, and why Charity Services have been warned not to become partnerships will form a big part of 52 Suppliers Directory ‘territorial’ over their cause. the organisation’s future strategy.

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contents.indd 2 16/02/2018 10:55:46 In this issue Contents

26 30 41

Technology

30 Ahead of the game The innovation of new mobile apps is integral to technological development. But which charities Governance are ahead of the game? Antony Savvas finds out more. 20 Cover: Time for change? Research has highlighted a lack of 33 Cyber security focus diversity across trustee boards. Matt Ritchie looks at how the situation 34 A hacker’s paradise arose, and how to broaden the Cybercrime is on the rise and governance skills base. charities need to be able to keep up with the pace of change. 25 When should charity trustees Investment accept it’s time to move on? 36 For charities, cyber is never Being honest in the self-reflection of worth the risk 41 Managing risk in volatile performance isn’t always the easiest Cyber risk is a major and growing markets of tasks, but for trustees, it’s vital to concern for any organisation. For A panel of charity decision makers the success of a charity, says Louise charities, the consequences can be look at how charities can manage Thomson. especially devastating. investment risks in volatile markets.

26 Keeping up appearances 38 Cyber attacks: just how 46 Charities vs investment risk Oxfam’s Haiti scandal has put the prepared are you? Charity Times asks the investment third sector under increasing scrutiny, Living in an online world provides industry: how much investment requiring charities to spend some great resources for charities, but risk charities should really take? time pampering reputations. Joe research shows many charities are Lepper explores. already struggling to keep up. 50 ARC investment column

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contents.indd 3 16/02/2018 11:42:19 News in brief

eligible products to the charity of the customer’s choice. “The charity sector could save tory peer announced as preferred charity commission between £250m and £288m chair. Baroness Tina Stowell has by switching to a different been selected as the preferred investment management model, candidate to chair the Commission. Stowell was Leader of the House of as used by other institutional Lords and the Lord Privy Seal until investors.” July 2016. She was made a peer in January 2011 and joined the government in September the same year. As a junior minister, she led the have been disqualified from being a landmark Marriage (Same Sex company director, or who have Couples) Act through the House of previously been removed as a trustee. Lords in 2013 before being promoted However, the new rules will mean to Minister for Communities. She disqualification will also apply to later received awards from the those who are in contempt of court, Spectator, Stonewall and PinkNews named under certain anti-terrorism donations from the presidents for her involvement in the Act. legislation, or are on the sex club are a ‘clear cut case of offenders register. harm’, lawyers say. Law firm charity sector could be McCarthy Denning said the actions ‘significantly oVerpaying’ for aceVo calls for action oVer of trustees returning funds should be inVestment fees, research lacK of diVersity among commended. The comments came finds. According to analysis charity leaders. There has been after the Financial Times reported conducted by SEI, the charity sector no increase in the number of black allegations of sexual harassment could save between £250m and and minority ethnic CEOs in the at a fundraising event held by the £288m by switching to a different charity sector, with the overall Presidents Club in London. An investment management model, as number having fallen since figures undercover reporter from the FT used by other institutional investors. reported in 2008. According to attended the all-male event, held at SEI’s review of public data on fees ACEVO’s annual Pay and Equalities London’s Dorchester Hotel, where in the charity sector, highlighted Survey, diversity among charity she claimed to have witnessed the OCIO investment approach, CEOs is still rare and has even fallen senior businessmen groping female which is commonly employed by since ACEVO published its first set hostesses. Following the reports, global pension schemes and US of ethnicity data back in 2008, when Great Ormond Street Hospital endowments, saves other institutional 4.2 per cent of respondents reported decided to return donations raised by investors a considerable amount of being from a BAME background. In the event, claiming it was “shocked” money. this year’s survey the figure was just to hear of the behaviour at the event. 3 per cent. ACEVO said the lack commission opens applications of improvement in racial diversity amaZon inVites all uK charities for automatic disqualification over the last decade “stands in start to Join amaZonsmile. Customers waiVers. The Charity Commission contrast” to the improvement of who shop with AmazonSmile can has opened the waiver application the number of female CEOs who choose a charity to support before process for people affected by the responded to the survey. they start shopping and that charity new trustee automatic disqualification will receive donations from Amazon rules. The new rules, which seek to trustees granted control of at no additional cost to the customer disqualify trustees with a criminal muslim aid; interim manager or the charity. AmazonSmile provides record, come into effect on 1 August discharged. The Charity the same services as Amazon, but 2018. Currently automatic Commission has discharged the instead, Amazon will donate 0.5 per disqualification from trusteeship interim manager of Muslim Aid, cent of the net purchase price of includes those who are bankrupt, granting the CEO, Jehangir Malik,

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Nibs.indd 2 15/02/2018 17:11:33 News in brief

and the new board of trustees the not-for-profit Allia to help support responsibility for overseeing the charities. The organisation’s work charity. Interim manager, Michael on social finance has resulted in King, was appointed to take on the over £250m of bonds being issued management of Muslim Aid while the to support a range of organisations regulator opened a statutory inquiry from housing associations and care to examine a number of financial providers to community employment irregularities relating to the areas of ventures and other charities. The the charity’s overseas activity. King finance includes seven retail charity has now been discharged, leaving the bonds, £70m of investment from new board of trustees, along with the Scottish government in Allia bonds CEO Jehangir Malik and his senior and 15 charitable bonds and mini team to control the charity. bonds, which have raised over £24m from communities and charities take to twitter to businesses to generate grants for ‘reclaim social media for good’. local charity projects. A major social media movement to ‘reclaim social media for good’ went islamic trust officiallY warned viral in February, with thousands of over ‘misconduct and charities and organisations actively mismanagement’. The Charity a new survey for charities and all not- calling for more positivity on social Commission has issued an official for-profits to have their say on media. Charities and third sector warning to the Islamic Trust, property issues. The aim of the organisations involved in the after finding “misconduct and survey is to find out what property movement included Comic Relief, mismanagement” in the means to the voluntary sector, NCVO, the Institute of Fundraising administration of the charity. The and what property issues are and Whizz-Kids. The movement, charity watchdog opened an inquiry affecting individual organisations. which has been trending on Twitter, into the charity in April 2017 after its Last year, the 2016 survey results reached a staggering 10 million trustees failed to file its statutory suggested 58 per cent find difficulty people within the first five hours on returns for 2016 on time. This was in obtaining funding for property social media alone. despite having previously been part costs, while 45 per cent believed of the Commission’s class inquiry property to be the biggest threat to sector to discuss role in into double defaulters and providing their charity’s sustainability. responding to national assurances to the Commission that disasters. The charity sector has they would not default again. The voluntarY organisations come together to discuss its role in inquiry concluded that the trustees should publish gender paY gap responding to future domestic did not properly discharge their data, saYs ncvo. The National disasters such as terrorist attacks, duties under charity law and in Council for Voluntary Organisations natural disasters, and other large scale December 2017, the Commission said the data should be made national crises in the UK. A group of used its regulatory powers to issue available, regardless of a charity’s 25 large and small charities, umbrella the charity with an official warning size. It recommended that bodies, fundraising platforms and under section 75A of the Charities organisations should consider charity regulators all attended a Act. Trustees of the charity have collating and publishing the data, as roundtable held by the Charity now been warned they must take a way to reflect on any gender pay Commission last week and agreed to all reasonable steps to ensure that differences and to demonstrate a the principle of creating a collective future statutory returns are submitted commitment to transparency and framework to coordinate and enable on time. accountability. Charities with a small future charity sector responses to number of employees will have to national critical incidents. major charitY bodies launch decide whether publishing their data new propertY surveY. The Ethical is meaningful, and strike a delicate over £250m in bonds raised to Property Foundation, in partnership balance between being transparent support charities. Over a quarter with the Charity Commission and the and protecting individuals’ data, the of a billion pounds has been raised by Charity Finance Group, has launched umbrella body said.

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Nibs.indd 3 16/02/2018 11:39:42 News Mergers

he number of new mergers among the charity sector has Mergers: charities asked to be more T remained relatively rare, while collaborative and less ‘territorial’ the mergers that have taken place have not been ‘strategic or timely’, a new report has revealed. Mergers have proved To be a rariTy aMong The Third The Good Merger Index, the fourth secTor, and chariTies have been warned noT To becoMe annual review of not-for-profit sector ‘TerriTorial’ over Their cause. mergers, produced by Eastside Primetimers, revealed 70 mergers Written by: lauren weyMouTh involving 142 organisations took place in 2016/17. Among the sector’s Interviews conducted by Eastside Primetimers with chief 167,000 charities, this represents just executives in this space uncovered how they are responding 0.09 per cent. by partnering for impact in the face of constraints on state Despite common discussion about funding, welfare reforms, rent caps in the housing sector and duplication, 2016/17 also saw a net regulatory pressures. increase of about 1,700 entities “There is reason for optimism, both from the valuable registering with the Charity lessons delivered by the innovative new partnerships we do Commission. see and from developments in the sector like the Governance Among the mergers that did take place Code and discussions around a Merger Turnaround Fund” over the year, quality was highlighted as Litchfield said. an issue; 44 per cent of the smaller organisations involved in mergers were The need for more collaboration in deficit in the year before the merger Following the publication of the data and the announcement took place. of forthcoming mergers, such as that of Bowel Cancer UK The average operating margin of these and Beating Bowel Cancer, Prince William joined in the call charities as a percentage of their for greater collaboration among charities. turnover was -14 per cent, according to Speaking at the Charity Commission’s annual public the data, which it claims to show meeting in January, the Duke of Cambridge told an audience mergers “are still very often sought as a of charity decision makers that the sector needs to work on form of ‘rescue’ from a position of collaborating better to "embrace change". financial and strategic weakness”. "I do wonder at times if the compassion which leads “On the whole, we are left with an people to set up or maintain charities could not be equally impression of a charity sector not yet well directed at first finding opportunities to work with able to grasp the nettle and explore the existing charities," he said. need for greater consolidation, or do so Prince William drew reference to the merger of the bowel in a timely and strategic manner,” cancer charities, claiming both charities are “working Eastside Primetimers CEO Richard together towards similar ends, and which are merging from a Litchfield said. position of strength”. “This is despite continuing “Together I have no doubt they will achieve more to fight competition for constrained resources, bowel cancer than they could have done alone. This leads me a degree of duplication in services to think this approach could go further," he added. and the duty of charity managers and "Instead of charities working in separate fields, I wonder if trustees to consider the best means we could do more to find ways to combine forces, working to meet their charitable objectives in and innovating together.” this environment.” He added that competition between the funds of an “ever- However, the report highlighted growing number of charities” and the “confusion it can cause three ‘hotspots’ of activity among among donors” can lead to the “siloing of expertise and at federated charities, supported housing worst, territorial behaviour”. and mental health, which together “I know this message isn’t’ always easy to hear […] but as comprised 36 per cent of the total the challenges of the future continue to bare down on us, I mergers over the timeframe. believe this big shift must begin to happen,” he said.

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Mergers.indd 2 15/02/2018 17:35:51 News Mergers

to measure and communicate the financial and social outcomes of vpast mergers, so that others can learn from these. “Mergers are a complex endeavour and needs to be undertaken with care and proper scrutiny. But the risks of not merging at the right time often aren’t appreciated in proportion. Many charity mergers are in reality bail outs and when struggling organisations only explore it as a last resort, this almost inevitably leads to poor mergers, which are " I do wonder associated with failure and a loss of autonomy.” at times if the Litchfield added that “The sector must be open to collaborate, compassion which leads capacity and resource are also share expertise and resources, to focus less a challenge for charities, people to set up or maintain on individual interests and more on the noting how planning and benefits working together could bring. That charities could not be equally executing a merger can be I believe is where the future lies.” well directed at first finding “time-consuming” and can also entail temporary hidden The rarity of mergers opportunities to work with costs, which stem from But while it isn’t the first time the charity sector existing charities" the disruption. has been asked to focus on greater collaboration, Eastside Primetimer’s Litchfield said the report only Solutions confirms mergers remain a very “niche hobby”. “From speaking with many charities, “This is in spite of ongoing challenges to the sector in the funders and other advisors, I think the form of funding constraints and intense competition. But solution is two-pronged. Firstly, the why is this the case and does it really have to be this way?,” sector needs a merger fund that provides he said in a blog for Charity Times. flexible financing and technical support, “One of the major barriers to a merger is simply that it’s in exchange for some of it being repaid not routinely considered by charity boards (“it’s just not when the economic gains from a merger done”, in the words of one chief executive). Chief executives are unlocked. are busy running their organisations on the assumption that “Secondly, and harder to achieve, is their independent charity is best placed to achieve their that there needs to be a cultural shift in mission, instead of pooling efforts and resources,” he said. governance so that charity boards more Litchfield said in good organisations, the boards are likely routinely reflect and ask important to challenge this premise and encourage the executives to questions about their beneficiaries and consider strategic options like mergers. “Sadly though, this is how best they can serve them. rare and in many cases ego and self-preservation can pull “The end here is ‘impact’ rather than organisations even further away from examining how best to merger, although merger is one of a deliver on their mission.” range of tools towards that end. With public confidence in charities sadly now A need for widespread knowledge in question, it is imperative that social “The comparative rarity of mergers means that it is sector organisations grasp the nettle and unknown to many. Knowledge about how to find a partner demonstrate that we have the checks and and go about a merger, or what the potential benefits are, balance to manage the country’s finite still isn’t widespread. charitable resources sensibly. This “This is why the provision of greater information, tools means partnering for impact when it is and support would be useful. More research would be helpful the right thing to do.” ■

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Mergers.indd 3 15/02/2018 17:35:54 Charity Appointments

People on the move...

The latest appointments from around the charity sector

tracey crouch milly soames Tracey Crouch has been appointed as Former High Sheriff Milly Soames is the the first minister for loneliness.The new addition to Action4Youth’s board aim of the role is to continue the work of trustees. Soames is a patron and carried out by MP Jo Cox, who trustee of a number of organisations campaigned to combat loneliness and has recently joined Action4Youth. before she was killed by a far-right In her role as High Sheriff, she had an terrorist prior to the EU referendum. insight into the criminal justice system If you have any appointments Crouch will take on the role on top of and wanted to support Action4Youth to announce please contact her duties as the Minister of Sports and in its work to give children the chance [email protected] Civil Society. to fulfil their potential.

cristina andreatta mark castle rosie millard Cristina Andreatta has joined national Environmental education charity Field BBC Children in Need has appointed grant-giving charity Longleigh Studies Council (FSC) has appointed Rosie Millard OBE as the charity’s new Foundation as director with strategic Mark Castle OBE to be its next CEO, chair. Millard takes over from Stevie responsibility for developing its grant- with Mark taking up the role in Spring CBE who has chaired the charity funding programme and expanding February 2018. Castle is currently CEO for nine years. Her appointment will its work across England. She previously at Victim Support and was previously take effect immediately and will be for worked at the Association of Charitable CEO at the Association of Police and an initial three-year term. Millard will Foundations, the membership body Crime Commissioners (APCC). He had continue her duties as a journalist, for UK foundations and grant-giving previously held the CEO role at the broadcaster and deputy CEO of the charities. Association of Police Authorities (APA). Creative Industries Federation.

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appointments.indd 2 16/02/2018 09:47:30 Charity Appointments

anna FoWlie Brett terry caPtain Justin osmond The Scottish Council for Voluntary The NSPCC has appointed former National maritime charity, the Organisations has appointed Anna director of people and organisational Shipwrecked Fishermen and Fowlie as its new chief executive. development from the Alzheimer’s Mariners’ Royal Benevolent Society Fowlie will join Scotland’s national Society as its new director of people. has appointed Captain Justin Osmond third sector body in April 2018 from Brett Terry takes the reins from RN as its new chief executive. Osmond the Scottish Social Services Council Siobhan Sheridan and joins the NSPCC spent nearly 30 years in the Royal Navy (SSSC), where she has been chief with nearly 20 years’ experience of as a fleet air arm engineer, before executive since 2009. During her time the charity sector. He has held a gaining experience across various in the role, she has led significant number of senior strategic and senior leadership and management organisational change. operational HR roles. roles.

sarah Greene shaun FitZGerald nick murPhy Ovarian cancer campaigner and TV The Royal Institution of Great Britain Smith & Williamson has appointed host Sarah Greene has been named (Ri), has appointed Dr Shaun Fitzgerald Nick Murphy as head of charities for its patron of the UK’s leading ovarian FREng as its new director. A Royal investment management and banking cancer charity, Target Ovarian Cancer. Academy of Engineering Visiting division, working closely with Greene, previously host of Blue Peter Professor at the Department of investment managers to increase the and Going Live in the 1980s, and more Engineering at Cambridge University, charity division. Murphy joined the recently a guest host on ITV’s This Fitzgerald is also the CEO of Breathing firm as a partner in the investment Morning, has worked with the charity Buildings Ltd, a leading technology management team in 2012 and has since her mother died from ovarian company pioneering hybrid ventilation built up a client base of charity cancer in 2010. systems. portfolios, as well as other client types.

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appointments.indd 3 16/02/2018 09:47:37 CFG Column

Finance

it’s time for a revolution

recently had the pleasure of listening been the technological appreciation and the to Naziar Hashemi of Crowe Clark shared reputation for introversion in both the I Whitehill and my own Andrew O’Brien IT and finance professions, it’s actually a very deliver a round-up of legislative, regulatory good place for it to be. and practical changes in 2017 for Charity Finance has gone through a transformation Finance Group members. over the last 30 years. No longer is the It struck me that so much of the content dominant narrative about compliance; we have covered areas that others might stake claim to; seen a shift towards talking about business GDPR, digital, governance, Brexit – topics that partnering, leadership and impact. may not be seen as the territory of finance Technology needs a similar kind of professionals, but topics on which Charity revolution. We need to be thinking about Finance Group is active. investment, not to just maintain compliance The reality for today’s finance professional and minimise risk, but rather to rise to the Caron Bradshaw is that everything now has a financial angle. demands of future beneficiaries, staff, donors is Chief exeCutive Take GDPR, for example. It isn’t a topic and volunteers. offiCer of simply for the fundraisers amongst you. Rather than seeking to reduce what we spend There are a number of different elements on these core costs, we should be thinking the Charity that affect everybody. longer term about where it is smart to invest. finanCe Group There’s the practical risk management Whatever the topic, there is always a questions relating to data security, processing consideration that is financial or which draws and control of data to consider; do you need to on the skills of our finance professionals. invest in new systems and staff resources? It may have been the case that anything with There is also the knock-on impact to the cash a compliance or regulatory angle was given to flow and scenario planning/budgeting that might the finance person because that dry and terribly come from narrowing your fundraising activities important stuff ought to reside with the dry and and management of present and future donors. terribly important finance person. Then there are also the reputational risks if you Now, I think we are increasingly seeing that get it wrong with all the potential negative the inclusion of the finance professional isn’t impacts on your funder relationships and brand. because of such clichés, but because nearly There are questions as to the adequacy of your every single change a charity faces will have an training budgets and there are considerations impact on their risk profile, the business model regarding whether, and if so to what extent, and the sustainability. GDPR effects your reserves calculations. So By including the finance person in it’s not just questions for fundraisers, after all. consideration of wide-ranging changes charities Similarly, when we talk about digital and can raise their financial confidence, build technology, we are often not thinking in terms resilience and their ability to dynamically adapt of the finance professional. But we should be. to a changing world and continue to demand the I recently attended an event hosted by trust of all the sector’s stakeholders. Eduserv on digital leadership. It was clear CFG is committed to supporting finance and throughout the contributions that the challenge other leaders to get to grips with all relevant is less about the technical demands and topics - not just pure accounting. more about the leadership skills of the Next time you are grappling with a strategic people we employ. challenge, make sure your finance leader’s IT and digital are both increasingly under the perspective is included in the mix – it might not management of charities’ finance professionals. just save you from a crisis, it could help you Whilst the driver for putting it there may have spot an opportunity too. ■

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Columns.indd 2 15/02/2018 17:33:30 IoF Column

Fundraising

we all have a role in supportinG small Charities to do more

ur sector is brilliantly varied. We Department for Culture, Media, and Sport, a work in every area and region of summit on fundraising support for smaller Othe UK, helping people, supporting charities. It was a fascinating day of debate, communities, and through our collective passion ideas, and sharing thoughts amongst small and commitment, we improve lives and make charities, different levels of government and the world a better place. support organisations on issues that are all From the smallest, local volunteer-led focused on helping smaller charities do more. organisation, through to the large international This wasn’t about getting a wish list together charity, every organisation has a role to play. to hand over to government and say: ‘Now fund And while the larger charities account for this.’ We know that money is tight, and that the majority of the money raised, our sector resource is scare for direct intervention. And has always been predominantly made up of while I do still think that there is a role for smaller charities. government support specifically to small Over the last six months or so, we at the IoF charities, the role that government has to be peter lewis is have been focusing our attention on how we can much broader than writing cheques. The Chief exeCutive get more support to help smaller charities convening power to bring the sector and other of the institute become more financially resilient. The problem partners together, encourage cross-departmental is well documented through every piece of support, as well as provide a framework for of fundraisinG research and insight – smaller charities will local government are all vitally important. It’s continue to see an increase in demand for their also a critical time for engagement, with the services, they don’t have the resource to match Office for Civil Society embarking on a new the need, and are saying that they need support civil society strategy, now is the right time to be to develop the skills and capacity to be able to talking about solutions and looking forward. raise the income that will see them survive and But it is also about what we as support grow. The figures are stark; in 2015 it was organisations do; and how trusts and estimated that by the end of next year there will foundations support smaller charities. I’d prefer be a shortfall of £4.6 billion of annual income a longer-term, more strategic approach from for the charity sector. governments and other funders, delivered in a The scale of the task can feel daunting. These way that works for small charities, tailored to are big numbers and we mustn’t forget that their needsMore unrestricted core funding will behind every stat is a service that someone always be good. But some myths should also be needs. That’s why ensuring every charity has busted. Is full cost recovery our own worst the right skills to fundraise effectively is so enemy? What business would settle for just important. Fundraising works – every £1 recovering its costs? Like them, charities should invested on generating voluntary income be able to budget, and apply for funding, to returns over £4 on average – it’s sustainable, deliver themselves a surplus that they can invest and it’s empowering. in future growth – through fundraising or other Ensuring small charities have the skills and development activities. confidence to fundraise can only be done in Did we solve all the issues at the recent collaboration, with funders, infrastructure summit? No, we started to scratch the surface. bodies, membership bodies, local, regional and But we’re committed to continuing the debate national governments working together – and taking it forward to turn intentions into listening to and engaging with small charities to actions, and great ideas into tangible support. hear their needs and priorities and collectively I’m sure there are more views and suggestions identifying solutions. So I was really pleased out there too, so if you have ideas then get in that the IoF was able to co-host with touch – I’d love to hear them. ■

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Columns.indd 3 15/02/2018 17:33:32 ICAEW Column

Regulation

the presidents CluB Connundrum

ast month witnessed the outrage that was portfolios, but the perceived advantage of them sparked over the sexual harassment of being the return did not derive from companies Lthe hostesses at the Presidents Club whose activities the trustees consider unethical. annual dinner after party. But is the role of the trustee to be arbitrator on Following the event, some charities chose to the morality of companies, or is it to protect the return the donations they received from the assets of the charity and maximise the benefit to event, arguing that this protects the recipient the beneficiaries? charity from potential reputational damage that If we decide to make moral judgements on accepting such a donation could bring. donors, then where does this end? Are charities The current #MeToo climate has heightened now obliged to also turn down future press interest in sleaze, and what better for the fundraising proceeds and donations from those press than a story of rich, City sleaze? It’s not that attended the after party? Does this extend to surprising that many trustees wanted to put as company donations from events in which they Gillian mCKay much distance between themselves and the were part of the fundraising team? Do we now is the head of whole affair as quickly as possible. rule out donations from people with a criminal Charities and However, I hope the gesture has not resulted record for specific crimes? in the trustees who kept the donations being The gesture may also have had an impact on voluntary perceived as somewhat morally lesser. After all, public perception of charities. We are still seCtor at the ability to return the donation would depend putting out the flames of resentment that on the charity’s financial stability and so it is aggressive charity fundraising practices created. the iCaew likely that trustees from larger charities may The returned donations were of the size that find this an easier gesture than those from local fun-runners, cake-bakers and sponsored smaller ones. swimmers could only dream of. I’m not sure A problem with gestures based on morals how the gesture will be seen in the eyes of the is the moveable feast of moral judgement. many who give up their spare time to undergo The behaviour of the attendees at the after physical challenges, experience some party makes a great story. It’s the kind of stuff deprivation or sell off their own goods to that brings the press and public together in fundraise for charities. Indeed, recent research general condemnation. undertaken by NCVO has shown that two But the problem is that people indulge in all thirds of the public believe charities should sorts of behaviours that different people would keep the money. find offensive. That is the problem with the The other big problem with moral judgement moral compass; it swings in different directions is we tend to be much wiser after the event has depending on whose hand it is in. taken place. It abhors, but does not surprise me, The decision to return the donations was that such occurances took place at a late night, based on an assessment of the donors’ male-only, boozy City event. morals, not on the benefit of the funds to What also abhors me is that no woman, no the beneficiaries. matter how high up in City life she might have Of course, there is the reputational damage been, would ever have been invited and the risk but this has to be weighed up against the outdated sexism of that alone was not called fact the trustees have exercised their moral into question. judgement in a way that reduced the funds We gave the event our tacit acceptance of available to the charity. that fact, so is it really so surprising, that in a This is similar to the issue of ethical room where women are clearly considered investment. The returns on ethical investment outsiders, the evening had such a sleazy but funds may be lower than “non-ethical” predictable ending? ■

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Columns.indd 4 15/02/2018 17:33:33 EPF Column

Property

what is your property reality?

n terms of leadership, this is the most private sector landlords. important survey you will complete all year. Working with the Commission gives us the I The Charity Property Matters Survey 2018 sector reach across England & Wales, while our has just been launched by the Ethical Property colleagues at CFG have all the policy and Foundation in an exciting collaboration with market research and analysis we cannot supply. the Charity Commission and Charity Finance The questionnaire itself has been streamlined Group. and will take you just 10 minutes to complete. I see it unashamedly as an act of leadership Each response will be another piece in the by the sector for the sector. Run bi-annually, it mosaic picture of our sector’s property is the only property survey of voluntary experience. organisations that is completely independent of But I hear you say, why should I bother, the property industry. This therefore gives every I hate surveys! Who does not? And yet this voluntary organisation that rents or owns a is more than a survey, it is about making a property, the opportunity to establish just how statement and feeding into a bigger picture antonia important the role of property is to them to help your fellow charity professionals. swinson is This is our fourth survey with the Charity And this is important because property is real Chief exeCutive Commission - the first ran in 2012 - and over front-line stuff, where markets and capital the years, the results have revealed clear trends meet civil society. of the ethiCal against a backdrop of soaring rents and funding Property is not normally considered from the property cuts. In 2016, our last survey showed that of voluntary sector’s viewpoint, nor incorporates 425 respondents across England & Wales: the full scale and range of size and case. Yet as foundation. we know from the excellent 2017 Civil Society • 45% believed their property is the biggest Almanac published by NCVO, our sector threat to their organisation unchanged employs 853,000 people and owns assets since 2014. totalling £112bn. We contribute £12.2bn to the • 58% found difficulty in obtaining funding UK economy and earn £45bn a year of which for property costs, up from 41% 2014 we spend £43.3bn - the 2nd biggest budget • 52% did not have a property strategy item being rent and property costs. • 43% suffered unforeseen property costs. Every voluntary organisation has a property • 45.3% avoided seeking professional advice story and we need to learn from each other. So due to costs in the last 3 years. please spend a few minutes recording, • Close to one third (32%) worried about their anonymously, your property reality - the lack of security of tenure. challenges and the successes. The results will • Over half (52%) were considering sharing be published later in 2018 and sent to policy space with other charities. makers, property industry leaders and the third sector decision-makers to help them There are big messages to funders – who need understand the importance of property to our to connect the project funding they give with precious civil society. the working conditions of the staff and Last word to the Charity Commission’s new volunteers delivering the project. There is CEO Helen Stephenson: “Property continues to also a message to local authorities about the be a crucial asset for many charities, and is understanding or lack of it, of voluntary sector often integral to the services they provide. We property issues. For the private sector, there would encourage all charity staff and trustees to appears to be opportunities with so many take part in the Charity Property Survey 2018 charities seeking shared space, and there is and have their say on the property-related sector wide, a small but definite increase to matters affecting them.” #epf4charities ■

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Columns.indd 5 15/02/2018 17:33:36 Profile Interview

Profile: Matt Lent

The importance of staying in touch Future First CeO Matt Lent is new intO pOst, but aLready has sOMe big pLans FOr the Charity. he teLLs david adaMs why aLuMni are sO iMpOrtant tO the eduCatiOn systeM, and why partnerships wiLL FOrM a big part OF the OrganisatiOn’s Future strategy. enormously valuable source of support and inspiration for current students. Arguably the most important way alumni networks support current students is by providing relatable role models and signposting routes into possible careers, thereby helping to improve social mobility.

engaging with young people If there has been a common theme in Lent’s career, it has been an attempt to help schools and other organisations engage with young people more effectively. After working for various youth organisations in the UK and then in New Zealand, he returned to the education system himself in the early 90s to study for att Lent doesn’t remember school a Diploma of Higher Education and then a particularly fondly. He grew up in degree in Youth and Community Studies at Mnorth London during the 1980s, but is the University of Derby. reluctant to reveal which secondary school he Following graduation he worked for a attended, in part because he believes it is now number of different organisations, gradually a very different establishment. While he was a building up frontline, administrative and pupil, he recalls, the school was “pretty strategic experience. In 2004 he was appointed authoritarian and very academically focused – director of operations at School Councils UK, and I guess that approach didn’t work for me”. which worked across the whole education sector Instead of dedicating himself to homework, to promote school councils as a means of he found another outlet, attending, then improving equality and inclusion. He is proud volunteering for, local youth groups. This of the fact that by the time he left in 2008 the became the first step in a varied and impressive concept was in use in some form within the vast career. Today he is the newly installed (in majority of schools in the UK. January 2018) chief executive of Future First, Subsequent roles have included working for a charity that helps state schools and colleges the consultancy Crelos to help underachieving create alumni networks. gifted students from deprived backgrounds; Independent schools have benefitted from the developing conflict resolution and leadership support of their alumni for many years, but most courses for the youth charity Leap; and state schools barely use what can be an launching a social enterprise, Treetop Training

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CEOinterview.indd 2 16/02/2018 09:49:07 Profile Interview

and Education, delivering personal and professional training, consultancy and project management to not-for-profit organisations. During the first half of the current decade he worked for London Youth, while also leading the delivery of the ThinkForward programme in north and east London, supporting teenagers at high risk of becoming NEETs (not in education, employment or training).

a new strategy Lent says his brief at Future First includes developing a new strategy for increasing the reach of the organisation. Its primary role is to spread the message about the value of alumni networks. “About a quarter of schools engage with ex-students in some way,” he says. “How do we drive that up? Independent schools do this very well, state schools don’t, or don’t do anything like as much of it as they could. It seems so obvious, but it can be difficult.” Future First helps schools and colleges build their alumni network by providing a secure is the idea that pupils meet someone who was online platform they can use to collect the once being educated at their school or college contact details of students when they leave, and has gone on to establish themselves in a to keep that data up to date and to build up successful career. “Suddenly you see students’ contact with many more people who attended eyes open,” says Lent. “They think: ‘if they can the establishment in the past. do it, I can do it’. That’s the key message.” The service offered is tailored to suit each Future First claims that 100 per cent of school establishment, but it always includes the support staff who have used the service to bring alumni of an alumni officer to help contact past back to speak to current students report an uplift students, to plan initial activities and start to in students’ motivation in their studies. More embed the programme and network in the life than nine out of ten say these activities help of the school or college. improve students’ confidence and their It can then be used to run events and knowledge of educational and career pathways. workshops that bring alumni and current “There’s immediate benefits created by the students together. They may take part in events service: building resource, engaging with the related to specific parts of the curriculum, such community and creating a legacy for young as the STEM (science, technology, engineering people; and there are long-term opportunities and maths) subjects; or they may participate in around how schools work with local career fair-type events. There have been communities to have positive role models and numerous examples of alumni helping current mentors; and to build social capital,” says Lent. students to access some fantastic work The network also benefits from partnerships experience opportunities, at the Foreign & Future First has formed with a wide range of Commonwealth Office in London, for example. organisations, including SSAT, The Careers Students can also be mentored by alumni who and Enterprise Company, the Commercial have been through the process of applying Education Trust, Teach First, KPMG, UBS, for top universities, or for medical school. the Institute of Grocery Distribution and the At the heart of all of these networks’ activities Esmee Fairburn Foundation.

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CEOinterview.indd 3 16/02/2018 09:49:09 Profile Interview

a “healthy place” besides those for which he has already worked, The Future First network is now nine years old he picks out The Brilliant Club and the Access and includes over 400 schools in England and Project, both of which seek to increase the Wales. The small team Lent leads in London is number of children from under-represented complemented by individuals based in backgrounds who win places at the most Manchester and in south-west England; and by selective universities. He is also a fan of a board of trustees chaired by former Ofsted Teens and Toddlers, which gives teenagers chief inspector (and former headteacher) the responsibility to act as role models for Christine Gilbert. young children. “The organisation is in a really healthy place,” But ultimately, says Lent, the task of says Lent. “The systems and processes here are helping the next generation to achieve their amazing, the staff team are incredibly talented full potential is not just a job for parents, and committed and there’s a clear vision on the teachers and policymakers – it should be a goal board. I’m privileged to be taking on the for the whole of society. “It’s about helping leadership of this organisation at this time.” Just young people to understand the relevance of a few weeks into the role, he admits he doesn’t education,” he says. “How do we support them yet have a very clear idea of exactly what the so that they can see what might be possible?” future strategy will look like, but it will involve Lent urges readers to go to the Future First more partnerships with other external funders; website and register as someone willing to go and perhaps some diversification in partnership back to their old school, adding that one should with other youth service providers. never assume students won’t be interested in Lent is very much aware of the financial your achievements. pressures affecting schools and colleges, but “You don’t need to have become a CEO argues that this makes the services and for your experience to be of value,” he says. additional support that third sector organisations “What schools want is for someone to say can offer these organisations and their students ‘I may not be an astronaut or an MP, but even more important. I’m well-established on a career path’,” Asked which of the many other organisations he says. “It doesn’t really have to be working in this part of the sector he admires, glamorous to be inspiring.” ■

18 www.charitytimes.com

CEOinterview.indd 4 16/02/2018 09:49:19 OPEN FOR ENTRIES

8

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bettersox-2017_V3.indd 1 14/02/2018 10:19:04 Leadership Diversity

DIVERSITY

he current thinking about diversity within Tgroups of decision time for a change? makers is so fully formed it could no longer be referred recent research has put the spotlight on a lack of diversity to as a debate. Having a wider range of perspectives across charity trustee boards. matt ritchie looks at how is good. Groupthink is bad, the situation arose, and the steps that might be taken to and studies suggest it was one of the key failings that broaden the governance skills base. WRITTEN BY MATT RITCHIE paved the way for the global financial crisis. But the charity sector has nothing to boast about when it comes to diversity of may have been unsurprising that people and thought at governance boards were “not reflective of the level. communities they serve”, as the Diversity is, perhaps unsurprising- commission’s statement announcing ly, not straightforward. It comprises the report said, the scale of the issue many factors and it would be a added momentum to an already mistake to think one can gauge the vigorous discussion. diversity of a group of people by Researchers surveyed a sample simply casting one’s eye over them. of more than 19,000 trustees, with Once the problem is defined, what around 3,500 responding to the are the possible solutions? With the survey. Taken on trust, the awareness size of the prize that higher quality and effectiveness of charity trustees governance and decision making in England and Wales found that offers, the question is certainly around two thirds of charity trustees worth asking. are male, with an average age of “Perhaps there is a perception of 55-64 years old. Just over half were what a trustee looks like, but there’s retired, 75 per cent had household no model trustee,” says John incomes above the median, and 60 Williams, vice chair of the per cent had a professional Association of Chairs. “They can qualification with 30 per cent come from anywhere and every- qualified at a post-graduate level. where, and all will have something Some 92 per cent of trustees were to bring to the table.” white, the research found, and in-line with the 2011 census’s Current climate age-weighted results for ethnicity. Research commissioned by the The research also suggested a Charity Commission and Office for shortage of particular skills and Civil Society, and delivered by a expertise on charity boards. consortium led by Cass Business Respondents reported lacking rele- School and the Cranfield Trust, vant legal, digital, fundraising, mar- threw the issue of trustee diversity keting and campaigning skills at into sharp relief. board level. While there was broad For a sector that so often leads awareness of fraud and cyber risk, the conversation on championing there was concern around the ability inclusion and equality, the level of boards to deal with these threats. of homogeneity of trustee boards Charity Commission head of was a surprise to many. While it guidance and policy Jane Hobson

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TrusteeBoardDiversity.indd 2 16/02/2018 09:18:50 Leadership Diversity

2 per cent of directors in FTSE the CharItY seCtor boardrooms. has nothIng to boast defining diversity about When It Comes to “We use the term ‘diversity’ quite dIVersItY of people and cautiously, because it means both socio-demographic diversity and thought. also diversity of skills, experience, perspective, and backgrounds,” Williams says. says the research highlighted a Louise Thomson, head of policy need to encourage charities to (not for profit) at ICSA agrees that review their board composition, the definition of diversity as it dynamics, and culture. “We are applies to charity boards goes far certainly not saying it is bad that beyond the most commonly cited such a high proportion of charity factors around gender and ethnicity. boards are made up of qualified and Thomson says these headline-grab- experienced people who can give bing issues are a good start, but they time to the role,” Hobson says. “But are only part of the mix. “It’s about homogeneity creates risks in terms bringing together different ways of of not having a range of different thinking, different ways of approach- opinions and perspectives ing challenges, and creativity and contributing to decision making.” innovation,” she explains. The issue is, of course, not limited This point gets to the heart of why to the charity sector. Tackling a lack diversity is considered to be a priori- of diversity on corporate boards has ty at all. The arguments in favour of been a long-running project for com- greater diversity across governance panies and successive governments. and executive teams are manifold, Lord Davies of Abersoch’s 2015 but most essentially boil down to report, Improving the gender one of two key factors: equality or balance on British boards, found effectiveness. that there had been significant The Charity governance code, improvement in female representa- updated last year, includes diversity tion on corporate boards. Women as one of its seven key principles. made up more than 26 per cent of Diversity, the code states, is “essen- FTSE 100 boards and almost 20 per tial for boards to stay informed and cent of FTSE 250 boards when the responsive and to navigate the fast- study was released. paced and complex changes facing Furthermore, the number of all the voluntary sector”. “Boards male boards in the FTSE 100 whose trustees have different back- dropped from 152 in 2011 to zero in grounds and experience are more 2015, and just 15 in the FTSE 250. likely to encourage debate and to The study revealed an improvement, make better decisions,” the code certainly, but also that the boards states. were not representative. Sir John Thomson explains how having a Parker last October published the greater range of perspectives on a results of his review into the ethnic board of trustees will mean issues diversity of UK boards, which found get examined in greater detail and UK citizens of colour represent just tested from more angles, providing

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TrusteeBoardDiversity.indd 3 16/02/2018 09:18:51 Leadership Diversity

reason for the homogeneous nature have the time and the opportunity to It Is also not as sImple as of trustee boards. “A contributing be available to volunteer, and are factor may be that 71 per cent of keen to do so.” CompletIng a box-tICkIng trustees are recruited through an There is a wealth of anecdotal exerCIse, to ensure there Is informal process which can lead to evidence of a lack of supply of trustees appointing other board trustees, which can lead to a charity representatIon of a mIx of members with similar backgrounds struggling to fill positions on baCkgrounds and perspectives to themselves. its board with anyone, let alone Boards need to look for ways people with the specific skills and for better decisions to be made. “It’s to recruit outside their ‘circle experience that might fill a gap in generally accepted that if you have a of friends’, to bring in skills, the trustee body. wider perspective that you bring to perspectives, life experience “When I came into the sector as the boardroom then you’re going to and insights that they lack.” an employee 20 years ago, we had make better decisions,” she says. Williams also cites informal an issue where it wasn’t necessarily “Whereas if you have a group of recruitment processes as a potential the quality we got on the board; it people with the same experiences, cause for a lack of diversity in was the quantity,” Thomson says. the same background, the same charity governance, alongside “Maybe we’ve not come as far values, then how much of a discus- the demands of trusteeship as we should have in those sion are you going to have, that naturally appealing to people with 20 years to looking at quality in really looks at the alternative issues? the time and means to volunteer the boardroom.” You might not always make the best their services. Then there is filling the particular decisions, but you should generally “There are perfectly practical skill gaps that exist on boards, such have a better quality of discussion reasons for why trustees end up as those highlighted by Taken on and therefore decision making.” being an average age of about 62, trust. Williams says that, traditional- It is also not as simple as complet- even if in principle that’s not great ly, charities have tended to target or ing a box-ticking exercise, to ensure diversity,” he says. “People in later reach people with particular skills there is representation of a mix of life often start to think about giving such as finance or an understanding backgrounds on the board. Ensuring something back, they want things to of social care. “But there’s certainly the mixture of trustees is conducive do in retirement. And – although this a pressing need for more digital to good decision-making is crucial. will change – quite a lot of people skills and more marketing skills. An example of this is ensuring there are still retiring on final salary Fewer people from a fundraising is sufficient representation on the pensions. As a result of that they background are recruited to boards board to ensure that trustees from different backgrounds do not feel in the minority, and are thus more likely to stand by their decisions and opinions in robust discussion with the whole trustee body.

Causes The UK charity sector boasts organisations catering for a staggering panoply of areas of need. So it may seem counter-intuitive that the pool of people entrusted with guiding these endeavours looks, on the face of it at least, so similar. Hobson at the regulator highlights charities’ predominant method of finding trustees as one potential

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TrusteeBoardDiversity.indd 4 16/02/2018 09:19:02 Leadership Diversity

and as we’ve seen with the recent range of broader range of skills and society,” the report says. Williams fundraising scandals, it’s a proven experience, is key. adds that boards should look harder missed opportunity for governance.” “You need to educate them before at the skill mix they have, for Addressing this issue is next to they can start to understand the kind example through formal skills audits, impossible, short of relying on good of people that they need to get on. and “for that to be a background to luck, if boards don’t know the Then the issue of getting digital their board recruitment”. problem exists in the first place. natives on the board is the same or Additionally, Thomson suggests Thomson notes how helping boards similar to what you have with charities with the resources to form to understand the gaps that they BAME and gender – getting the nominations committees would be have, and the opportunities they message to them in the language that well-advised to put them in place, as could grasp by bringing together a is appropriate and resonates with a more formal and organised them, via a medium that is pertinent approach to ensuring the right mix to them.” of skills can pay dividends. There is also a range of channels solutions boards can use to search for new There is no silver bullet to the issue trustees, he says, such as the services of board diversity. As set out above, offered by Trustees Unlimited and the reasons for the current state of Reach Volunteering. Furthermore, trustee participation vary. A range of initiatives such as the trustee recruit- measures is required. However, ment pathways programme offered recruitment processes are a key by trustee recruitment charity component for increasing diversity. Getting on Board, can shape as a Indeed, Taken on trust’s first valuable resource to charities recommendation involves addressing seeking to broaden the pool of the prevailing approaches: potential trustees they reach. “We recommend that more work Williams encourages trustees to be done to encourage trustee boards seek out and take advantage of to actively embrace the introduction such programmes. of different people, new ideas, skills The medium charities use to find and experience to trustee boards, and potential trustees is also an impor- to target the recruitment of trustees tant part of ensuring the right people from more diverse sections of are reached. This is particularly true for the digital natives that can offer the technological experience and expertise so valuable to the modern trustee board. But recruitment is just one piece of the puzzle. Chairs should look closely at how they run their governance function and ask whether the current arrangements may serve to exclude the sorts of trustees they need to broaden the skillset of their boards. “Think about supporting people as much as possible to get to meetings,” Thomson says. “If you want to get quality people there then help them, because they’re going to help you in the long run.” ■

www.charitytimes.com 23

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opinion When should trustees accept it’s time to move on? hen developing the Charity Being honest in the self-reflection of performance isn’t Governance Code (2017), Wthe steering group always the easiest of tasks, but for trustees, it’s vital to the discussed the importance of trustees success of a charity. WRITTEN BY LOUISE THOMSON, HEAD OF NOT reflecting on their performance. Principle 5: board effectiveness, FOR PROFIT POLICY, ICSA: THE GOVERNANCE INSTITUTE states as part of its recommended practice: “The board has, and beneficiaries, volunteers or staff make a real difference to the regularly considers, the mix of skills, and as such has no real grasp board. However, when they do knowledge and experience it needs of what is going on and the turn up physically (rare), say to govern, lead and deliver the challenges facing the charity. little or add nothing valuable to charity’s purposes effectively. Can support decisions that are no the discussion. It reflects this mix in its trustee longer relevant to the charity and • The bauble: They look lovely and appointments, balancing the need its strategic aims. can attract attention, but they for continuity with the need to • The single-issue trustee: Only demand lots of attention from the refresh the board.” speaks at board meetings on a charity’s staff; you’re not sure If you recognise any of the particular issue, usually a matter who gets the most benefit from following, perhaps it’s time to that was decided many meetings the relationship. change your approach or do ago, but like a dog with a bone, the noble thing and move on? they just can’t let go. Of course, these are crass • The permanent fixture trustee: generalisations of the worst types • The too risky trustee: No-one can remember when of trustee behaviour. However, it Doesn’t give sufficient time to they were appointed to the board, is likely that you will recognise at read and consider the board but they turn up and hark back to least one or two of the behaviours papers, skims proposals presented times when ‘we tried that before, in your boardroom, probably even to the board and supports them and it didn’t work’. Past in yourself. without undertaking their own experience can be useful, but Every trustee joins a board research. nostalgia shouldn’t overrule with the intention of playing a • The risk adverse trustee: creativity. positive role in helping the charity Over-cautious and incapable of • The hands-on trustee: Believes achieve its aims. But sometimes taking an educated guess to invest that only they can implement the life gets in the way and we no in a proposal that could harvest decisions made by the board and longer strive for continuous real impact for beneficiaries. deliver the impact desired by all improvement - in ourselves or • The truculent trustee: Speaks stakeholders. Doesn’t trust the our boards. louder and longer than other staff to deliver and as such In which case, we owe it to trustees, believes their opinions interferes with the day-to-day ourselves, and more importantly and experiences trump that of operations of the organisation, to the charity’s beneficiaries, to fellow trustees, is resistant to much to the chagrin of staff be honest and ask if someone else change and innovation, unless it and volunteers. would do a better job. If the answer was their idea. • The non-existent trustee: is ‘yes’, then you know what you • The detached trustee: The trustee On paper this trustee is the must do. Ultimately, you’ll get more no longer spends time, if they complete package – has the skills, respect for stepping aside than for ever did, with the charity’s knowledge, and personality to outstaying your welcome. ■

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TrusteeshipBlog.indd 3 15/02/2018 16:37:11 Public relations Reputation

reputation

he reputation of the charity public’s views of the voluntary those to take action, by promoting sector has taken a battering in sector. While in 2014 the overall efforts to give supporters more of Trecent years due to a raft of trust and confidence level in a say in how they are contacted. negative media coverage of charities was 67 per cent, by 2016 it YouGov’s 2017 Charity Brand fundraising malpractice, financial had plummeted to 57 per cent. Index, which measures whether problems, data protection concerns Some charities have started to people have heard anything good and most recently the conduct of aid fight back, to make sure or bad about the charity, suggests workers. improvements in areas such as data this has been a success as Cancer Among the most high profile protection, fundraising and Research UK saw the biggest boost examples was the revelation in safeguarding are widely promoted. in reputation among the top 10 February that Oxfam staff used Already by 2017 the Charity charities in its list. prostitutes while working in Commission’s survey had seen an Frances Hawley, chair of the earthquake-hit Haiti seven years ago. improvement, with confidence levels Chartered Institute of Public Another scandal to affect the sector rising to 6.3 out of 10, although still Relations (CIPR) not-for-profit was a 2015 Daily Mail investigation down on 2014’s figure. group, urges more charities to into allegations third party Cancer Research UK is among follow Cancer Research UK’s lead. fundraising firms were exploiting vulnerable donors. In the same year, financial issues came under scrutiny with the collapse of Kids Company, which had received around £46 million in government funding, Keeping up despite civil servants raising concerns about its management. In addition, last year 11 charities, appearances including the NSPCC and Oxfam, were fined a total of £138,000 by the Information Commissioner’s Office Oxfam’s Haiti scandal has put the third sector over data protection breaches. under increasing scrutiny again, requiring charities Eroded trust to spend some time pampering their reputations. Such negative publicity has significantly eroded trust in charities, But it isn’t always as easy as it sounds. according to the Charity Commission’s annual survey of the WRITTEN BY Joe Lepper

26 www.charitytimes.com

PRandReputationIssues.indd 2 16/02/2018 09:27:21 Public relations Reputation

Greater transparency to also celebrate the achievements A small charity that has impressed A good opportunity to do this takes of their fundraisers, as a way of Morgan recently for its ability to place in May this year when the enhancing the reputation of the attract positive publicity about its General Data Protection Rules sector. work, despite having no paid staff, is (GDPR) come into force. This “As a sector we need to be better Stay Brave UK, which was founded European Union regulation aims to at celebrating the role of fundraisers, by sexual abuse survivor Alex give the public greater control over who are too often a group that is Morgan to improve access to help how charities and other organisations hidden away that people don’t want for all victims, regardless of gender collect and use their data. to talk about it,” he says. or sexuality. “This as an opportunity. The PR Francis recommends charities look The Daily Mail, The Independent, advantage is to go out and say ‘we for strong personal stories among Huffington Post and ITV News were are proactively looking at this their donors and supporters and among the media outlets to cover because we think it is a priority’,” encourage them to share on social over the last year how the charity is says Hawley. media how the money they have helping to make a difference to This strategy, of offering raised is making a difference. people’s lives. reassurance to supporters and “On sites like Just Giving there is “Stay Brave was founded on funders, has also been adopted lots of information about how you personal stories,” Morgan points out. swiftly by Oxfam. Just days after the give money but very little in terms “Supporters want to see their aid workers scandal broke, the of celebrating success,” Francis says. contributions in action. It’s no charity released a statement Being able to identify and promote use talking about how great the outlining how it plans to improve strong personal stories within an organisation is, how interesting safeguarding and the way it handles organisation is an area where small, your team is or how swanky your sexual abuse cases. In addition, local charities can have an edge over branding is if the supporter can’t Oxfam’s deputy chief executive larger charities due to their founders’ see the impact of their contributions. Penny Lawrence resigned and issued personal links to its cause, says “By sharing a personal story a statement to the media saying that Mandy Johnson, chief executive of you can show the impact they’re she was “ashamed” and took full the Small Charities Coalition. going to make and people can responsibility. “One of the nice things about relate more than just viewing small charities is that their founders a statistic.” Celebrating achievements are often still involved and have got Simon Francis, chair of the Public into the charity sector because they Showing personality Relations and Communications have a strong personal connection Learning from successful PR Association (PRCA) charity and to the cause they are starting up,” campaigns from other sectors is not-for-profit group, urges charities she says. another effective tactic charities

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PRandReputationIssues.indd 3 16/02/2018 09:27:25 Public relations Reputation

should adopt, advises Tom Watson, media coverage, according to the Lobbying Act business and communications CIPR and PRCA. Another challenge for those lead for the National Association They are particularly concerned involved in charity PR is the 2014 for Voluntary and Community that metrics such as ‘advertising Lobbying Act, which regulates the Action (NAVCA). value equivalent (AVE)’, which way the sector campaigns around One recent campaign he believes looks at the number of newspaper elections.Through the Act, those charities can learn from is Doncaster column inches a campaign generates, spending more than £20,000 in Council’s public consultation late is still being used. “It is an arbitrary England or £10,000 or more in other last year to name their road gritters, metric,” Hawley explains. “It is not parts of the UK on campaigning which were eventually called David assessing impact, but volume. It is have to register with the Electoral Plowie and Gritsy Bitsy Teeny no good saying to a chief executive, Commission as non-party Weeny Yellow Anti-Slip Machinery. ‘look we have got 100,000 views on campaigners and supply details “They used comedy and personality this tweet’ without saying what of campaign spending. Failure to engage with people. Having difference it has made.” to comply could result personality and humour really cuts Instead the PRCA and CIPR in legal action and in April last through,” says Watson. are urging more charities to have year Greenpeace was fined £30,000 An example of a similar approach a clearly defined set of impacts for failing to register, while Friends is the Dog’s Trust. For its Christmas from the start of any PR activity, of the Earth was fined £1,000 for 2016 PR campaign it temporarily so that they can gather evidence late registering. rebranded as the ‘Socks Trust’ to based around it. This could be a A continuing concern is that the encourage people to give socks at survey on whether the campaign Act is creating a “chilling effect” on Christmas rather than dogs, after changed the public’s atttitude, or PR activity, according to Francis. A receiving 3,400 calls from new whether donations have increased survey of 151 charity campaigners, owners wanting to give up their dogs as a result of it. published by training and support after the previous festive period. “Every charity, no matter its organisation the Sheila McKechnie resource, can find ways to measure. Foundation this January, backs this Measuring success The charities that are doing a up. This found that 13 per cent are But proving the value of PR to professional job at measuring impact campaigning less over the last three senior management and trustees are those who are measuring opinion years due to pressures such as the can be a challenge as too often before, during and after a campaign, Lobbying Act. A third (33 per cent) this is being measured wrongly in such as through online surveys,” said such pressures had made terms of quantity not quality of Hawley says. senior management more cautious about campaigning. The Campaign Collective, a social enterprise set up to support charity campaigning has published a Freedom to Campaign guide this year to help the sector better understand the Act and encourage ensure them to continue to campaign effectively. Francis, who is a founder member of the Campaign Collective, hopes this guide helps give charities greater confidence to carry out campaigns. Given the hammering charities have had from the media in recent years, such confidence is vital if charities are to continue repairing the sector’s damaged reputation. ■

28 www.charitytimes.com

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Untitled-2 1 16/02/2018 10:24:36 Technology Mobile apps

MOBILE APPS Ahead of the game

harities are under increasing In an increasingly digital world, the innovation of new pressure to keep ahead of Ctechnology and utilise it for mobile apps is integral to technological development. But campaigning and to achieve better which charities are ahead of the game and how do smaller fundraising results. As well as charities promoting charities keep up? WRITTEN BY ANTONY SAVVAS their cause to supporters through mobile apps, charities are also using communities it serves. 75 per cent of our staff using laptops them to boost their HR systems and Stuart McSkimming, head of by 2019 as lower prices for laptops provide better communications technology and data at Shelter, mean we can benefit from the across their organisation. says: “With an increasingly improved operational efficiency they Shelter is a charity very mobile workforce, we welcome offer, by following a one-device-per- focussed on leveraging the the developments being made user policy.” latest developments in technology when it comes to delivering key Combined with widespread to ensure it operates at optimal business systems and processes use of smartphones and tablets, efficiency and can focus on via mobile devices. he says, this mobility enables and deliver the very best to the “We are working towards having Shelter to make informed decisions quickly, and enable staff to work in the locations where they can be most effective. “We are already making good progress,” McSkimming says. “Most of our core internal applications are available on mobile – from Office 365 (including email, document storage, Skype and office applications), expenses running on Business World On! from Unit4 to MS Dynamics for customer relationship management (CRM), and we are planning further upgrades this year, including face-to- face fundraising.” He says Shelter is very much aware of security concerns and ensuring that business and finance data is not stored on unmanaged and unprotected devices, so the charity uses a mobile device management (MDM) system and multi-factor authentication for applications that may hold personal data.

Mobile app fundraising But it isn’t all rosy at other charities.

30 www.charitytimes.com

MobileApps.indd 2 15/02/2018 16:02:33 Technology Mobile apps

Episerver helps charities unifiy Cut landfill digital content, e-commerce and Reason Digital, a social enterprise marketing into a single platform, “developing technology for good”, including omnichannel solutions for has also helped a number of charities intelligent personalisation and to improve their mobile fundraising. campaigns. Episerver conducted Matt Haworth, founder and director research among 20 major charities at Reason Digital, says: “Two thirds and 1,200 consumers and found of visitors to charity websites are many organisations were missing using a mobile device, so it’s vital opportunities to raise funds via that charities are optimising their mobile apps. mobile sites to reflect this. But some Episerver says: “There is a websites can’t be viewed properly or growing demand from consumers simply don’t work at all on smaller for a ‘mobile first’ approach to screens, whilst others make it making donations and engaging difficult or impossible to make a with their favourite charity. To meet donation on a mobile phone.” this demand, today’s non-profits The UK dumps 1.37 million don’t need to hire external web tonnes of appliances and 1.5 billion agencies and in-house experts to tonnes of textiles every year. While manage their mobile content. With donating small items to charity, the right tool-set, they can simply such as clothes or accessories, isn’t do it themselves.” usually a problem, when it comes But its research found that to larger items, such as a sofa or while three out of five of the a fridge, they become trickier to UK’s top charities offer an iPhone transport. Each year over 800,000 app, the majority of these apps used sofas in the UK are sent to are promotional rather than used landfill or are recycled. as a way to accept payments. Only The physical challenge of 25 per cent are capable of managing transporting large items to charity donations, it found. And virtually shops is not the only issue. Finding none of the charities benchmarked charity shops can be difficult in provided Android apps, despite some areas and knowing when Android controlling over 80 per cent they’re open – 88 per cent of donors of the global smartphone market. say limited opening hours make it At Marie Curie, it was found harder to donate, according to that the organisation was falling Reason Digital research. Potential behind in its digital strategy. It was givers also need to know whether time to rebuild the website and there’s car parking and whether create a competitive and appealing what they’re taking will be accepted. digital presence. Working with To help address the problems, Episerver, Marie Curie has created Reason Digital developed the Gone a mobile-first site, with a wealth for Good app for iOS and Android of new content, personalisation devices, which allows people to features and re-engineered donation easily donate their goods to charity. processes. The result? A 27 per cent Gone for Good has so far been used increase in online donations. by ten charity partners and over £1

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MobileApps.indd 3 15/02/2018 16:02:47 Technology Mobile apps

both healthcare professionals and women living with breast cancer to ensure the app provided the type of content needed. More importantly, it was tested before launch by more than 1,100 women. BECCA provides bite-sized information, support and inspiration that women with breast cancer can access any time they like. Nair says: “If developing your own app is not the solution for you, or perhaps you’re a small charity with limited budget, there are other apps out there that can still help you reach more people, raise awareness of your charity and even help you raise funds.” Another mobile app worth a mention is the WorkMobile solution developed for Oxfam. WorkMobile million has been raised through the Lightful is working with smaller is used by Oxfam at music festivals app in the first 12 months. charities like Woman’s Trust and across the UK to eliminate the need The process is easy: a user Stay Up Late, which want to stay for paper-based forms, replacing downloads the app, takes a photo of ahead of the curve when it comes them with an electronic alternative. the item(s) they’d like to donate, and to technology, but can’t necessarily The benefits mean that Oxfam then chooses a charity. If the chosen afford to invest a lot in social media. volunteers can capture donator charity accepts the donation a van Lightful has both a free and information accurately, securely will be sent to collect it. If they premium version of the app, and in real-time on a mobile device, decline, the user is given the allowing charities of all sizes to helping to rid the errors that happen opportunity to choose another benefit from the app’s ability to save with paper-based forms, as well as charity or have their item picked up time, money and resources. lost and damaged ones. and recycled. Photographing and Lightful’s CEO Vinay Nair WorkMobile allows Oxfam registering a donated item also helps says: “They say there’s an app for volunteers to simplify the way they to reduce theft and wasted, everything and the charity sector is collect data at large scale events, unsuitable donations. not immune to this. We went through which can then be shared with new Gone for Good has been embraced a stage a couple of years ago where and existing supporters through by Age UK, British Heart lots of charities thought the answer social media channels. Not only has Foundation, Cancer Research UK, to engaging with their audience was this helped to speed up the process Debra, Mind, Oxfam and The to build their own app. and allowed the charity to reach Salvation Army and others. “Having an app can play an more people, volunteers can now important role, particularly in service collect more information like time, Social media delivery, but is not always a solution. location, digital signatures, Another way of raising funds is If you are considering developing an photographs and sound-bites, through social media. Lightful app, have you consulted with your making the first point of contact provides a social campaign users? Is it something they actually with donors a memorable one. management platform, designed need and would use?” When it comes to mobile app exclusively for charities and social Nair says a “great app” developed opportunities in the third sector there enterprises. The app allows charities by a charity is the BECCA one from are plenty of alternatives to choose to organise all their social media Breast Cancer Care. They conducted from and plenty of extra cash to be output in a single place. research and then consulted with generated as a result. ■

32 www.charitytimes.com

MobileApps.indd 4 15/02/2018 16:21:58 cyber security focus

A hacker’s paradise for charities, cyber is cyber attacks: just how never worth the risk prepared are you?

Cybercrime is on the rise Cyber risk is a major and growing Living in an online world provides and charities need to be able concern for any organisation. For great resources for charities, but to keep up with the pace charities, the consequences can be research shows many charities are of change. especially devastating. already struggling to keep up.

PAGE 34 PAGE 36 PAGE 38

CyberSecurity.indd 3 15/02/2018 17:47:38 Focus Cyber security

focus A hacker’s paradise

Cybercrime is on the rise and charities need to be able to keep up with the pace of change.

WRITTEN BY lauren weymouth

n July last year, Manchester-based of organisations, but especially Lack of digital strategy Icharity, Bury Hospice, claimed charities. According to Fyfe, this But, what is perhaps more worrying cyber criminals had stolen £235,000 type of crime had occurred almost about the rise of cyber fraud is from its bank account through what 12,000 times during the latter half not the eventuality of the attacks the charity described as of last year. themselves, but the lack of “sophisticated cyber fraud”. And it doesn’t stop there. A preparation among charities. The At the time, the charity said it number of fake websites were set up third sector is responsible for had reported the incident to both in the wake of the Grenfell Tower funding the country’s most the Charity Commission and the fire, with over 60 different names vulnerable people and causes, yet police, and it was keen to warn other associated with the fire, set up to charities are still showing very little charities not to fall victim. But other encourage people to make donations. signs of pro-activity in keeping charities have fallen victim. Bury Furthermore, ransomware attacks hackers at bay. Hospice is by no means the first or were extremely common among According to a survey released by last charity to suffer the charities last year. The crime Tech Trust, over half of charities do consequences of a vulnerable sector involves hackers encrypting files in not have a defined digital strategy, or existing in a digital world. order to get a ransom paid to decrypt consider digital to be embedded in During Fraud Awareness Week in information. This accounted for their charity’s overall strategy. October 2017, Andy Fyfe, detective some 50 per cent of all reports of The survey, which was conducted chief inspector of the City of cyber fraud. for the report No charity left behind: London Police said charities are the need for a digital the third losing hundreds of thousands of sector, was carried out over a period pounds a month to fraud. of 30 days in September-October Fyfe explained that fraud was a 2017, with 1,261 different largely under-reported crime last organisations taking part. A year and the cost to the sector was staggering 58 per cent of charities believed to be about £2 billion a said they didn’t have a set digital year. Worryingly, cybercrimes now strategy in place. account for 50 per cent of all crimes “[A digital strategy] doesn’t mean in the UK. introducing technology for He said even the figures the police technology’s sake, but instead held were much lower than the enabling an organisation to do more, actual prevalence of fraud within the more quickly by identifying sector, thus the data didn’t fully opportunities to apply digital represent the extraordinary scale of solutions to key business the problem across the country. challenges,” Tech Trust explained. One of the most common types of Among those with no digital cyber fraud was highlighted as strategy, only 27 per cent of charities computer software service fraud, said they are positive that they will where fake technicians pretend to be increase their measurable impact in from IT firms so they can access 2018. However, 92 per cent of those computers and personal data. with a digital strategy in place said This type of fraud affects a wealth they expect that to increase.

34 www.charitytimes.com

CyberSecurity.indd 4 16/02/2018 09:35:20 Focus Cyber security

Digital engagement considered on the impact of artificial “This will ensure they are fit Matthew Moorut, head of digital and intelligence, algorithms and robotics for the future, ready for real and marketing at tech Trust says the on jobs and beyond, so far, the present challenges around GDPR release of the publication on digital results in these areas have been and better prepared to address adoption amongst UK charities positive,” Moorut explains. threats such as cyber security,” comes at a time when digital tech is So, despite cyber-attacks placing he adds. causing society to “change more a clear threat on the charity sector, Whatever the size of your than ever, placing more weight on there are still very few signs that charity, there has never been a social organisations to cover the charities are able to keep up with more important time to further inevitable cracks”. the pace of change and adopt the your charity’s digital strategy and “Ultimately, the evolution of appropriate technological advances reduce the risks of cyber attacks. digital tech and the companies needed to fight off cybercrime. Whilst your job is to find new ways driving it brings both great Mark Dewell, managing director to keep your charity safe, a opportunities and serious threats, at Advanced, notes how charities fraudster’s job is to find intelligent as can be clearly seen looking back are inevitably under “immense ways to steal from the most at 2017. pressure” in a digital era, but, vulnerable. In a digital world that is “2017 was another year for serious he explains: “The reality is that modernising by the second, failure data breaches and costly cyber- charities need to have the confidence to show signs of preparation and attacks, which crippled charities and to embrace cloud technology fully, risk-management sadly turns the companies alike […]. Still, while to ensure they can transform into charity sector into a palatial abode there are critical questions to be digital-first organisations. for unwanted guests.

We share “ our expertise “ with charities – and our profi ts too.

At Ansvar, we’re totally committed when it comes to charity insurance. It’s not just a matter of providing free risk management advice to all the charities we insure. Every year we also donate 25% of our group profi ts to good causes. We understand the sector, because we’re part of it. Talk to your broker to see how we could help you too.

For more information about Ansvar, talk to your broker or visit our website: www.ansvar.co.uk Insuring the heart of your community

Ansvar Insurance is a business division of Ecclesiastical Insurance Offi ce plc (EIO) Registered Number 24869. EIO is registered in England at Beaufort House, Brunswick Road, Gloucester GL1 1JZ. EIO is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. All content © Ecclesiastical Insurance Offi ce plc 2018.

9261.002_ANS_CharityTimes_ShareExpertise_204x135mm_v1_SN.inddCyberSecurity.indd 5 1 15/02/201802/02/2018 17:49:11 14:47 Focus Cyber security

focus For charities, cyber is never worth the risk

n 2012, a hacker breached the Cyber risk is a major and If a data breach happens, specific IBritish Pregnancy Advisory cyber insurance can help take care of Service’s (BPAS) website and growing concern for any expenses such as investigation, legal threatened to publish the name, organisation. For charities, fees, notifying affected parties and address, date of birth and telephone getting IT systems up and running number of 10,000 people who had the consequences can be again. It can also help with the contacted the charity about especially devastating. public relations cost of managing pregnancy issues, including abortion. media fall-out. In its defence, the charity said it WRITTEN BY RichaRd Lane, Cybercrime is another area of didn’t realise its website was storing concern for charities, which may this information and that it wasn’t managing diRectoR at anSVaR need cover for anything from an secure. The result: a £200,000 fine employee fraudulently syphoning and a severe blow to the charity’s financial costs from a cyber security funds into their personal account, to reputation, not to mention the breach”, while the ICO reports that a cyber-attack that shuts down their potential distress to its users, had data breach incidents for charities organisation’s computer systems. Or their details been published. increased by two thirds between they may find themselves liable for BPAS is not alone. In 2016, both 2015 and 2017. It’s small wonder costs if their organisation transmits a the RSPCA and the British Heart that, in our recent survey, 68 per virus or infringes intellectual Foundation found cent of charities said cybercrime was property rights. to their cost that misusing donor “an emerging risk causing them Conventional insurance policies data – whether knowingly or concern”. may not cover events like these. As not – can be expensive and specialists in the third sector, Ansvar damaging to their reputation. What can be done to help has developed Charity Protect Plus: charities when things go wrong? a comprehensive, online product More technology means more Given the current cyber climate, offering cyber protection and risk for non-profits it makes sense for charitable covering the key cyber risks many As charities increasingly rely on organisations to have insurance in not-for-profits face. technology and social media to place that specifically covers cyber Realistically, cyber risk is here to interact with service users, donors, related risks. Data is a big issue for stay. While we can do little to suppliers and the public, they are charities and with the introduction change that, brokers and insurers can exposed to greater risks. These can of the General Data Protection help charities be prepared and have take many forms, from damaged Regulations in May 2018, there the cover they need to bounce back technology and interruption of their will be much stricter rules about when things in their cyber world important work, to crime, lost managing and securing personal go wrong. ■ income and third party claims. data. It will be more important than A recent government report on ever for charities to ensure they cyber security noted that some are on top of their data and the charities had “incurred sizeable responsibilities that come with it.

36 www.charitytimes.com

CyberSecurity.indd 8 15/02/2018 16:29:56 Leading in di cult times

Leadership: Governance and reputational risks are major concerns to UK charities, but what de nes good governance and what are the skills required for a strong leader?

Politics: Dr Julie Maxton, Executive Director of the Royal Society joins us to discuss the dominating subject that is Brexit, but also the more subtle shifts in contracting o er another set of challenges. Will the administration of the future protect or revolutionise the sector?

Funding: After a year lled with funding and legislative change, securing funding also remains an ongoing concern for many charities. But with fraud and cyber risks at an all-time high, GDPR imminent and governance rmly under the spotlight, how can charities gain control over the threats and continue to meet their promises?

Investment: markets have been swaying through the volatility and charities have been under pressure to seek new and fruitful sustainable opportunities. Is there light between the cracks?

Technology: Learn how to use social media as a better fundraising platform from Matthew Hodson, Social Media CEO of the Year. Meanwhile, Brian Shorten, Chairman of the Charities Security Forum warns of the risks cyber security can bring and how charities can stay prepared.

Sponsored by Partners

De Vere Grand Connaught Rooms, London, 10 May 2018

www.charitytimes.com/conference

magad.indd 1 15/02/2018 17:08:30 Focus Cyber security

focus Cyber attacks: just how prepared are you?

Living in an online world provides great resources for generating more income than charities, but research shows many charities are already traditional methods. Stepping up digital activity can also enable struggling to keep up. WRITTEN BY DAVID BRITTON, CHARITY organisations to make gains operationally, decrease costs, aid DIRECTOR AT ECCLESIASTICAL INSURANCE collaboration, increase awareness he increasing use of digital attacks, and the ‘WannaCry’ and engage with wider audiences Topens up a world of opportunity pandemic infected hundreds of in new ways. for charities, but it also exposes thousands of computers in just one However, this can also bring them to new risks, particularly with day. It’s no surprise to see this trend new threats in an ever-evolving cyber-attacks increasing in both reflected in the charity space with landscape. And, after several years frequency and ingenuity. ransomware top of the list of cyber of high-profile attacks on larger Ecclesiastical’s recent research threats organisations have faced. corporations and businesses, there with charities has shown that 17 per There’s no doubt that not-for- is now a growing trend of cyber- cent have already experienced a profit organisations are embracing attackers turning their attention cyber-attack and that the larger technology and social media to towards organisations that may their turnover, the more likely they interact with beneficiaries, have a lower level of cyber are to have experienced an attack. customers, suppliers, donors and the security, including charities. In 2017, the world saw a general public. Options to donate A lack of confidence in online significant increase in ransomware online can be easier and quicker; security and a lack of employees with experience using digital Figure A methods can create barriers for charities trying to tap into their digital potential. The recent Charity Commission report, Taken on Trust: awareness and effectiveness of charity trustees in England and Wales, highlighted the need to raise awareness among trustees about the importance of protecting their charity against cyber-attacks and what the potential fall-out could be. With the General Data Protection Regulation (GDPR) coming into force in May 2018, it’s no surprise that the charities we surveyed think the loss of data and the

38 www.charitytimes.com

CyberSecurity.indd 10 15/02/2018 16:34:13 Focus Cyber security Figure B

77% 76% 80% 69% 65% 52% 81% 61% 44% 62% 63% 44% 54% 61% 40% financial cost of putting things right 77% would be the biggest impacts of an 45% 40% attack (Figure B). 42% However, the reputational damage 49% 32% to the charity and the individuals 42% can be just as serious in the longer 35% 36% term – a fact recognised by larger 0% charities (77% said damage to 6% 8% individual reputations would be the biggest impact). And it’s clear from our research that even the threat of an attack Figure C is acting as a barrier to some charities innovating. Our research showed, for example, that the threat of a cyber-attack is putting some charities off using e-mail or social media to engage with both service users (19%) and donors (15%). There are ways to mitigate cyber risk, primarily through practical steps such as virus protection and good data management. However, it’s also worth backing up your cyber security and business continuity plan with cyber insurance cover. This can help by providing access to cyber experts and other professionals to help deal with the financial and reputational fall-out of an attack, including notifying the people affected by a data breach, which can involve significant resource. It can also support with the financial impact, such as lost income and any third party legal claims. ■

www.charitytimes.com 39

CyberSecurity.indd 9 16/02/2018 09:33:56

Breakfast briefi ng Managing risk

BREAKFAST BRIEFING Sponsored by:

MANAGING RISKS IN A VOLATILE MARKET

www.charitytimes.com 41

GAMbreakfastBriefing.indd 3 15/02/2018 17:15:12 Breakfast briefing Managing risk

Panel:

arun shetty Portfolio director at asset management group GAM Investments.

Kate andrews Andrews is the chief financial officer at the Bible Society.

norman cumming Cumming is chair of the investment committee at UnLtd. financial officers from charities bit of volatility, such as Trump or across the UK to discuss the issues the back and forth around Brexit, leading the investment risks agenda. but volatility isn’t just a function Vicky Rooke Markets have changed drastically of politics: other things matter,” he Rooke is a senior analyst over the years and volatility has tells the panel. at consultancy firm Asset dropped, but some issues still very While markets may not be overly Risk Consultants (ARC). much remain. chaotic over the coming year, the ability to manage a portfolio the way Market performance charities have been accustomed to is Katherine taylor Kicking off the discussion, Larry still beginning to change. “The way Taylor is the chief execu- Hatheway, chief economist and head it’s always been done will pose tive at women’s charity, of investment solutions at GAM certain challenges for all of us as Ovarian Cancer Action. provides a background on market investment managers. We must be performance in 2017, noting that wary of extrapolating the period of despite the aforementioned political low volatility forward,” Hatheway Jeremy moodey uncertainty (Brexit, Trump and the explains, hence the vital need for Moodey is the chief other usual suspects), 2017 was charities to adopt a healthy attitude executive at Sons & particularly positive for investments, towards risk. Friends of the Clergy. due in part to monetary policy Assessing risks and targets predictability, as well as a healthy Keir Boley, portfolio manager world economy. at GAM, argues that the biggest And the good news doesn’t stop challenge for charities is not just anaging investments there. According to Hatheway, 2018 be aware of risk, but to begin isn’t an easy task. Ever- offers reasons for optimism. “We questioning a portfolio that has Mincreasing political call 2018 ‘2017-light’,” he says. been performing successfully for uncertainty and market volatility, “By which I mean markets are more years. “Charities should be looking coupled with the need for income fully valued, but strong earnings, at whether parts of their investment provide a large and difficult task for synchronised global growth and low portfolio that appear diversified are those responsible for a charity’s inflation remain supportive. Returns actually being driven by the same assets. But there’s a large industry are likely to be positive, but also factor risk,” Boley says. out there, capable and willing to help more subdued.” “If that’s the case, they should charities cope with the unnerving There has been the additional be looking at starting to rotate or pressures managing investment benefit of a “historically unusual change the mix of some of the risks of an unpredictable climate. low period of volatility” for some asset allocation, away from some Together with GAM, Charity time now, Hatheway adds. “We’ve of the things that have seemingly Times gathered an expert panel seen things that the market hasn’t performed well above their long- of trustees, chief executives and normally paid attention to causing a term performance,” he adds.

42 www.charitytimes.com

GAMbreakfastBriefing.indd 4 15/02/2018 17:15:28 Breakfast briefing Managing risk

“As [Hatheway] has already Flexibility is also key to ensuring Julia smithies discussed, markets have been assets aren’t under-sold, argues the Trustee for woodland doing really well recently, and so panel. Norman Cumming, chair of conservation charity the it’s been a very strong year for the the investment committee at UnLtd, Woodland Trust. classic 60/40 portfolio. But it’s the Foundation for Social really important to look at whether Enterprises, explains how the more there are parts of that portfolio that flexible trustees can be with their David Renton just aren’t as independent as people spending, the less the charity will Director of finance and first thought.” be exposed to this risk. “The more investment at Guy’s and David Renton, director of finance flexible you are in your spending St.Thomas’ Charity. and investment at Guy’s and St. patterns, the less you will be forced Thomas’ Charity echoes this idea, to sell assets at the wrong time,” noting how charities are very much he says. Kier Boley “in the risk game” and organisations GAM’s Shetty questions whether Portfolio manager at asset should approach risk by remaining the responsibility should really be management group GAM patient. “As an industry, we’ve had placed on the trustees, or whether it Investments. a good run and markets are up, but should actually be pushed onto the you can’t avoid the fact that if the asset manager; however Cumming markets are down, we are going to argues that it ultimately lies in the michael Joseph be a bit down too. That’s what hands of the trustees to decide on Director of finance and taking risks means,” he explains. the charity’s expenditure pattern. operations at youth charity “We know that we can’t predict “You could push it onto the asset CityYear UK. the future. We know we need a manager, but they really don’t have well-diversified portfolio. But once the responsibility,” he says. “Trustees we’ve got that, we’ve also got to take great interest in expenditure larry hatheway be prepared to hold. It’s good to and risk”. Chief economist and head rehearse what might happen and of investment solutions at invest time into that, but we also The active/passive debate GAM Investments. just need to hold.” Active vs passive is an ongoing debate, and one that has been tossed Valuation risk around the investment management Among the many risks that are industry for years, but choosing the However, Guy’s and St. Thomas’ difficult for charities to prepare wrong time to invest actively/ Charity’s Renton disagrees, arguing: for is the risk that assets may be passively, or the wrong manager “It really depends what you look at. undervalued at a time when the to work with could indeed leave You can only really take a view if charity may be forced to sell charities in a vulnerable position. you look at whether the investments this asset. The group weighs up the pros are performing better than the market But Arun Shetty, portfolio director and cons of each, but struggles to over five to 10 years. But you can’t at GAM, reiterates Renton’s point identify a winner. Jeremy Moodey, always expect them to outperform.” about the need for patience, chief executive at Sons & Friends of Naturally, the panel notes, one explaining that this risk can be easily the Clergy, argues that the benefits of of the main benefits of active mitigated if you “just hold on”. “It active and passive can only really be management is that when really does depend on your time identified during downturns. “One of investments are performing badly, horizon and the geographical area the issues to consider in the defence somebody else can make decisions you’re invested in,” he says. “There of active management is that assets on a charity’s behalf. Vicky Rooke, will be times when some assets are may have underperformed relative to senior analyst at Asset Risk going to be performing less well and fees, but they’re also better hopefully Consultants (ARC), highlights if you can hold on, this will only be positioned than indexes come the how this also means somebody a notional fall in value, but if you downturns. So you will only really else is able to cope with the have to sell then you crystallise that ever know if active managers can pressures investing brings. “With a loss. So it really does depend on justify their fees during downturns,” fully passive approach, you really your time horizon.” he says. need to be prepared to make the

www.charitytimes.com 43

GAMbreakfastBriefing.indd 5 15/02/2018 17:15:49 Breakfast briefing Managing risk

investment decisions yourself and For example, Renton, from Guy’s strong relationships between trustees for the committee to be able to have and St. Thomas’ Charity, explains and their advisors. that responsibility.” how as a health charity, the board of But it’s also important to keep an Although relatively agnostic, trustees decided very early on not to eye on market movements and keep the panel agrees that there is no invest in tobacco. However, “that the trustee board contemporary, issue in principal with a truly does come at a cost”, he explains, Moodey says. “Given that we’re active manager. However, one “because tobacco has been the best coming up to a 10-year bull run and concern is unanimous: fees. “One performing for years”. many charities have a maximum of the issues is that the fee climate “We looked at the cost of nine-year trustee length, there’s is in the process of change for excluding [tobacco] and decided it a whole generation of trustees actives post-MiFID II,” Sons & was the right thing to do. But it was who aren’t actually prepared for Friends of the Clergy’s Moodey the only one we decided to avoid. a market downturn.” says. “We need to see where You could argue whether sugar Diversifying income streams is fees end up, because only then and alcohol are really ‘bad for you’ also paramount to the mitigation of can we see if they are justifiable.” as such, but tobacco is definitely risks and potential charity failures, just bad for you. But you do have Cumming explains. “Different Ethical dilemmas to have that debate on the board sources make each individual one If investment fees weren’t enough to decide.” less important. It means you can of a concern for trustees, ensuring The panel agrees that the issues also be slightly more adventurous a charity’s values are represented around keeping investments in-line and you’re not subject to the one in the management of its assets with the charity’s overall objectives stakeholder risk.” further complicates matters, all the aren’t just money-related. There are Going forward, Kate Andrews, more if trustees wish to ensure the reputational risks involved, too. chief financial officer at the Bible way their assets are run actually “We should remember to zoom out Society, says it’s imperative there is advances their mission. and think about why we choose better reporting and transparency But charities are increasingly particular investments and it’s all around charities’ investments. “I’ve taking this approach, and the best because of reputation. There’s been only just come into the sector, so asset managers are expert at helping such a focus on charities that making I’m learning as I go, but I’ve them do it. Julia Smithies, a trustee a sensible judgement about ethical noticed little conversation around at the Woodland Trust, explains how investments is crucial,” Katherine investments – there’s just not much ensuring assets are invested ethically Taylor, chief executive at Ovarian reporting around it,” she says. is especially essential for charities Cancer Action says. “There’s this complacency that with an ethical objective at their it’s just income that turns up. But core. “At the Woodland Trust, we Mitigating risks the challenge will be what happens have taken this very seriously,” she With all of these risks in mind, when that changes and it’s not the says. “But with every organisation, the panel agrees that the key to case. Those conversations need to deciding what is ethical might be mitigating them is a combination happen now. That really is a different.” of planning, good governance, and challenge going forward.” ■

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CTawards2018.indd 1 14/02/2018 10:11:14 Investment Risk

investment Charities vs investment risk Charity Times asks the investment industry: how much investment risk should charities really take?

he question of how much investment risk is appropriate for a charity to take is better considered as a series of “Tquestions rooted in the individual charity’s circumstances. A long-term endowment, with no fundraising activity and flexible spending plans, faces different investment risks from a spending charity, with limited reserves, and relatively fixed spending commitments in the short term, and dependent on fund raising and voluntary donations. For the long term endowment, the main risk it faces is the corrosive effect of inflation over time, so its investment strategy may need to be focused on real assets that will grow the capital and income of the charity over the longer term, with minimum volatility. A diversified portfolio of equities and property could make up the majority of the assets. For the spending charity, the main risk is a shortfall in fundraising or donations leaving spending commitments uncovered, so the investment strategy may need to be ultra-conservative and focused on safe, cash- like investments. Assessing appropriate investment risk starts with individual charity circumstances.” Jeremy Wells, senior client director of charities and specialist institutions, Newton Investment Management

s Benjamin Graham perceptively pointed out: “Successful he recent market turmoil “A investing is about managing risk, not avoiding it”. However, “Theralds an end to the ‘new not enough trustees are regularly reviewing the amount of risk normal’ of solid equity returns they are taking with their charity portfolios, especially to allow for accompanied by low volatility. Even if variable market conditions. This is odd, because we instinctively markets recover, the fundamentals understand it makes sense to protect and lock in gains made in have shifted. Inflation is edging the good times. So, why not take a similar approach when higher, which sows doubts about the markets become overvalued? Given current market valuations predictability of monetary policy, (and the end extensive of monetary expansion), it certainly makes which has been a key source of sense to take stock now.” market support. For charities, lower Andrew Wauchope, senior investment director, Psigma equity returns accompanied by Investment Management higher volatility poses a particular challenge, insofar as sources of income remain scarce and bonds he investment risk a charity is prepared to take should be offer little diversification. “Tcommensurate with its objectives and time horizons. Consequently, portfolio Generally, charities have long time horizons, which means that construction becomes more they can make bolder investment choices and invest in more important, featuring equity exposure illiquid, higher-yielding assets to preserve capital and provide where earnings remain supportive, growth. That said, they must also ensure that they have sufficient augmented by liquid alternatives to liquidity to meet their spending requirements, which can vary enhance the stability of returns.” from hard and optional to aspirational. Every charity is different Larry Hatheway, chief economist and as such will have its own risk tolerance.” and head of investment solutions Pradeep Kachhala, UK director of UK charities, SEI and Arun Shetty, portfolio director, Institutional GAM Investments

46 www.charitytimes.com

investmentRisks.indd 2 16/02/2018 09:56:35 Charity Feb18_271h x204w_Print.indd 1 newtonim.com/charities E: [email protected] T: 020 7163 2448 Jon Bell For moreinformation: manner. responsible a in goals achieve their long-term view to charities help We take the widest possible PERSPECTIVEauthorised and regulated by the Financial Conduct Authority. is Management Investment Newton No. 01371973. England in Registered 4LA. EC4V London, Street, of York New Victoria Bank The 160 Centre, Queen Mellon Limited, Management Investment by only.UK Newton the in purposes Issued as construed be not should opinions investment advice and are subject to These change. promotion. financial a is This original amount invested the back get not may investors and rise as well as fall can them from income the and investments of value The risk. at be may Your capital This document is for information information for is document This

11/02/2018 00:33 Charity funds Data

investment

Multi-Asset Funds Investment Fund Cash % Bond % Equities Last Last 12 YTD Return1 Absolute Minimum Minimum Property % Other % Manager Size (£m) UK % Intl % Quarter Months 2017 % p.a. Risk2 % Initial (£) Additional £) Barclays Charity Fund Barclays 174.4 1.3 13.7 46.8 28.8 4.8 4.7 4.4 11.7 11.7 9.4 7.5 250,000* 20,000

Armed Forces Common Investment Fund BlackRock 351.2 -0.7 11.7 38 39.4 7.9 3.7 3.7 13.3 13.3 10.4 6.8 1,000 100

Charifaith BlackRock 160.6 6 10.8 40.2 30.7 7.2 5 3.3 11.6 11.6 9.4 6.5 5,000 1,000

Charity Multi-Asset Fund Cazenove 572 3.9 1.4 32.4 31.7 9.4 21.2 2.9 7.9 7.9 7.6 6.3 1,000 500

CBF Church of England Investment Fund CCLA 1,326.40 4.1 - 18.9 54.4 3.6 19 4.4 13.1 13.1 11.2 7.1 1,000 None

COIF Charities Ethical Investment Fund CCLA 423.9 6.9 - 20 52.5 3.4 17.2 3.4 12.1 12.1 10.3 7.1 1,000 None

COIF Charities Investment Fund CCLA 2,118.40 5.5 - 18.8 53.6 3.4 18.7 3.8 12.8 12.8 10.7 7 1,000 None

Amity Balanced Fund for Charities EdenTree 24.7 1.6 32.3 38.3 23.3 - 4.5 1.7 9.5 9.5 7.2 6.4 1,000 1,000

National Association of Almshouses CIF M&G 187.8 4.9 13.1 53.5 28.6 - - 3 9.5 9.5 9.1 7.3 None None

Newton Growth & Income Fund for Charities Newton 763.3 2.3 14.5 38.4 44.8 - - 4.7 13 13 10.5 9.1 5,000 2,500

Newton SRI Fund for Charities Newton 104.8 5.1 17.9 31 46 - - 2.9 10.6 10.6 8.8 8.4 5,000 2,500

Newton Growth Fund for Charities Newton 50.4 9.7 17.4 30.8 41.2 - 0.9 2.4 10.3 10.3 8.9 8 5,000 2,500

Active Income and Growth Fund for Charities Rathbones 173.5 9.4 16.3 25.3 30.1 9.3 9.7 3.9 11.7 11.7 9.2 6.7 10,000 2,000

Core Investment Fund for Charities Rathbones 68.9 2.4 12.2 37.6 35.3 5.9 6.7 3.4 10.6 10.6 (less than 3 years’ history) 10,000 2,000

Charity Assets Trust Ruffer 100.3 6 43 11 31 - 9 2.9 3 3 4.8 5.2 500 None Sarasin & Alpha CIF for Endowments 1,742.30 0.8 14.5 27.5 39.6 10.2 7.4 3.2 10.7 10.7 8.2 7.1 1,000 250 Partners Sarasin & Alpha CIF for Income & Reserves 152.5 7 71.3 9.2 9.5 1.2 1.8 1.7 4.1 4.1 4.9 4.8 1,000 250 Partners

Peer Group Indices1 Sterling Cautious Charity Index ARC 23.3 35 4.9 5.9 1.2 29.7 1.1 3.5 3.5 3.1 2.3

Sterling Balanced Asset Charity Index ARC 13.7 25.6 21.7 16.8 2.1 20.1 2.4 6.9 6.9 6.2 4.6

Sterling Steady Growth Charity Index ARC 7.6 18 39.3 21.2 2.7 11.1 3.1 9.4 9.4 8 6.3

Sterling Equity Risk Charity Index ARC 2.4 10.2 52.6 22.4 3.3 9.1 3.5 10.8 10.8 8.9 7.5

Market Indices1 UK Equities iShares 5 11.9 11.9 9.5 10.1

International Equities iShares 4.5 11.5 11.5 14.5 10.1

UK Sovereign Bonds iShares 1.9 1.7 1.7 3.9 7.6

UK Corporate Bond iShares 2.2 4.3 4.3 5.7 8.1

UK Property iShares 8 11.8 11.8 4.3 14.9

Cash - 0.1 0.2 0.2 0.3 0

48 www.charitytimes.com

ArchData.indd 1 15/02/2018 16:35:32 Charity funds Data

investment Source / Asset Risk Consultants Source Risk / Asset Multi-Asset Funds Investment Fund Cash % Bond % Equities Last Last 12 YTD Return1 Absolute Minimum Minimum Property % Other % Manager Size (£m) UK % Intl % Quarter Months 2017 % p.a. Risk2 % Initial (£) Additional £) Barclays Charity Fund Barclays 174.4 1.3 13.7 46.8 28.8 4.8 4.7 4.4 11.7 11.7 9.4 7.5 250,000* 20,000

Armed Forces Common Investment Fund BlackRock 351.2 -0.7 11.7 38 39.4 7.9 3.7 3.7 13.3 13.3 10.4 6.8 1,000 100

Charifaith BlackRock 160.6 6 10.8 40.2 30.7 7.2 5 3.3 11.6 11.6 9.4 6.5 5,000 1,000

Charity Multi-Asset Fund Cazenove 572 3.9 1.4 32.4 31.7 9.4 21.2 2.9 7.9 7.9 7.6 6.3 1,000 500

CBF Church of England Investment Fund CCLA 1,326.40 4.1 - 18.9 54.4 3.6 19 4.4 13.1 13.1 11.2 7.1 1,000 None

COIF Charities Ethical Investment Fund CCLA 423.9 6.9 - 20 52.5 3.4 17.2 3.4 12.1 12.1 10.3 7.1 1,000 None

COIF Charities Investment Fund CCLA 2,118.40 5.5 - 18.8 53.6 3.4 18.7 3.8 12.8 12.8 10.7 7 1,000 None

Amity Balanced Fund for Charities EdenTree 24.7 1.6 32.3 38.3 23.3 - 4.5 1.7 9.5 9.5 7.2 6.4 1,000 1,000

National Association of Almshouses CIF M&G 187.8 4.9 13.1 53.5 28.6 - - 3 9.5 9.5 9.1 7.3 None None

Newton Growth & Income Fund for Charities Newton 763.3 2.3 14.5 38.4 44.8 - - 4.7 13 13 10.5 9.1 5,000 2,500

Newton SRI Fund for Charities Newton 104.8 5.1 17.9 31 46 - - 2.9 10.6 10.6 8.8 8.4 5,000 2,500

Newton Growth Fund for Charities Newton 50.4 9.7 17.4 30.8 41.2 - 0.9 2.4 10.3 10.3 8.9 8 5,000 2,500

Active Income and Growth Fund for Charities Rathbones 173.5 9.4 16.3 25.3 30.1 9.3 9.7 3.9 11.7 11.7 9.2 6.7 10,000 2,000

Core Investment Fund for Charities Rathbones 68.9 2.4 12.2 37.6 35.3 5.9 6.7 3.4 10.6 10.6 (less than 3 years’ history) 10,000 2,000

Charity Assets Trust Ruffer 100.3 6 43 11 31 - 9 2.9 3 3 4.8 5.2 500 None Sarasin & Alpha CIF for Endowments 1,742.30 0.8 14.5 27.5 39.6 10.2 7.4 3.2 10.7 10.7 8.2 7.1 1,000 250 Partners Sarasin & Alpha CIF for Income & Reserves 152.5 7 71.3 9.2 9.5 1.2 1.8 1.7 4.1 4.1 4.9 4.8 1,000 250 Partners

Peer Group Indices1 Sterling Cautious Charity Index ARC 23.3 35 4.9 5.9 1.2 29.7 1.1 3.5 3.5 3.1 2.3 Key

Sterling Balanced Asset Charity Index ARC 13.7 25.6 21.7 16.8 2.1 20.1 2.4 6.9 6.9 6.2 4.6 1 The asset allocations Sterling Steady Growth Charity Index ARC 7.6 18 39.3 21.2 2.7 11.1 3.1 9.4 9.4 8 6.3 presented are based on Sterling Equity Risk Charity Index ARC 2.4 10.2 52.6 22.4 3.3 9.1 3.5 10.8 10.8 8.9 7.5 estimates provided by ARC. The estimates are calculated using statistical Market Indices1 methods that attempt to UK Equities iShares 5 11.9 11.9 9.5 10.1 derive a model portfolio International Equities iShares 4.5 11.5 11.5 14.5 10.1 whose historical returns

UK Sovereign Bonds iShares 1.9 1.7 1.7 3.9 7.6 most closely match the actual ACI results. UK Corporate Bond iShares 2.2 4.3 4.3 5.7 8.1

UK Property iShares 8 11.8 11.8 4.3 14.9

Cash - 0.1 0.2 0.2 0.3 0

www.charitytimes.com 49

ArchData.indd 2 15/02/2018 16:35:32 Asset Risk Consultants Column

investment Tilting at windmills

More transparent reporting is essential among charities, but is the receipt of a MIFID II 10%

depreciation rule notification an unnecessary alarm? WRITTEN BY Mark jefferies, director and

GraHaM Harrison, GroUP ManaGinG director, arc consULtants

n Don Quixote by Spanish author is our mission; we will wage a in the last 14 years and at no point Miguel de Cervantes, the righteous war on discretionary a subsequent notification for a 20% ieponymous hero sees a series of fund manager reporting practices. fall have been triggered. windmills on the plain and imagines For Sterling multi-asset class that they are “hulking giants” that Giants or windmills? charity investors, being notified of a need to be slain. He believes that his Whilst Don Quixote squared 10% depreciation during any given mission “is a righteous war and the off against thirty or forty giants, calendar quarter is likely to prove a removal of so foul a brood from off how likely is it that the typical rare event, which given the alarm it the face of the earth is a service God charity will have such an encounter? may cause raises the risk of a knee will bless”. Figure A shows the quarterly jerk reaction that may do more harm One wonders whether the maximum depreciation (fall in value than good. It will be incumbent on bureaucrats in Brussels went from the start of the quarter) over charity discretionary managers to through a similar thought process the 14 year history of the ARC provide sufficient information to when designing a client reporting Sterling Charity Indices (‘ACI’) enable investors to understand the rule where discretionary fund using the daily estimated series. circumstances and to take any managers are required to inform The chart shows, for the majority decisions on an informed basis, a clients on the same day should their of charity investors, such events challenge given the tight timeline portfolios suffer a 10% depreciation are likely to be rare, with only for notification. in value intra-calendar quarter. two reportable events in Q4 08 The argument might have gone and Q1 09 for Sterling Steady Fight or Flight? something like this: losses are Growth charity investors, despite Given the considerable challenges in bad; double digit losses are very experiencing a c.30% drawdown meeting the new reporting bad and should be avoided; over the financial crisis as a whole. requirements, the natural question is uncertainty as to whether an Even Sterling Equity Risk charity to ask how the new notifications investor has suffered such losses investors would have only received might help charity investors make must be removed; more transparency five MIFID II 10% rule notifications better informed decisions. Figure B Figure A

50 www.charitytimes.com

ARC-Column.indd 2 15/02/2018 17:17:27 Asset Risk Consultants Column

shows the three reportable intra- a potentially damaging emotional purchasing those assets that have quarter depreciation events for response than be of genuine fallen the most. Contrarian Sterling Equity Risk ACI through assistance. managers may well be doing the 2008- 2010 drawdown of the likewise. Selling asset classes financial crisis. Plan of action that have fallen in value due to The chart illustrates the difficulty So how should charities react if and general changes in market for charity investors and managers in when they receive an intra-quarter sentiment is rarely a good idea. responding to such events given the notification from their discretionary fall in value itself gives little manager that their portfolio has 3. Check how other charity multi- information on the previous or likely fallen 10% or more since the last asset class investors are likely to future path of asset values. reporting date? We would suggest have fared by referring to the The potential risks are also three courses of action: relevant ARC ACI series. The evident, with the Q1 09 notification daily ACI estimates are refreshed occurring at the start of a prolonged 1. Before taking any action speak on www.suggestus.com every rally that would have compounded with your investment manager to day and can be accessed free underperformance for those understand the context and to of charge. choosing to reduce risk. listen to their recommendations as to what, if any, actions they No need to panic The wrong giant are planning to take within their In summary, receipt of a MIFID II If a discretionary charity fund discretionary mandate. 10% depreciation rule notification is manager has followed best practice not a cause for panic or precipitate in assessing suitability and then 2. Revisit the reasons why the action. Before making any changes, communicating those findings to current investment strategy was speak with your manager; review their clients, it seems highly unlikely deemed suitable at the outset. your investment strategy; and that the introduction of the 10% If your charity’s investment goals check that other investors are in depreciation reporting rule will have have not changed, the charity’s a similar position. a material impact on the behaviour circumstances are similar but To quote Cervantes: “Forewarned, of those clients as and when your risk appetite has fallen, forearmed: to be prepared is half the financial markets experience a consider carefully whether short victory.” The hulking giant to be sharp correction. term thinking is dominating long slain is surely where an investor has For those charity clients who term planning. By definition agreed an investment strategy that is genuinely did not understand the financial markets are cheaper unsuitable, not the fact that charity potential volatility of the mark-to- after a fall of 10% or more. clients are not receiving day-by-day market value of their portfolios, Passive multi-asset class accounts of the short term volatility this rule is more likely to provoke strategies will be rebalancing by of their portfolios. ■ Figure B

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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.

INSURANCE

Ansvar has over 50 years’ experience of insuring the Third Sector. We have a tailored Ansvar Insurance range of policies to meet the needs and challenges faced by registered and recognised Ansvar House charities, community groups, not-for-profit companies, social enterprises and voluntary 31st Leonards Road, groups. Eastbourne, East Sussex Most of our policies are ‘packaged’ for simplicity and value, but we recognise that each BN21 3UR organisation is unique and special and provide flexibility to select additional cover as T: 01323 737541 required. F: 01323 644082 Have a look at our website for more information about our products and services – E: [email protected] www.ansvar.co.uk W: www.ansvar.co.uk Suppliers Directory

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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. Suites 10 & 10A The Quadrant As a charity owned insurance broker, Unity Insurance Services has a unique insight 60 Marlborough Road into your sector. For over 80 years, we have been protecting the people, property, Lancing Business Park liabilities and activities of charities. Lancing, West Sussex We view each charity as unique so we always aim to provide solutions that fit your BN15 8UW exacting needs. That’s why we will spend the time to understand in detail your T: 0345 040 7702 activities and risks to obtain the best possible cover at the best possible price. F: 0345 040 7705 Visit our website or telephone to us to find out more. E: [email protected] W: www.unityinsuranceservices.co.uk

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

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 4386 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

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INVESTMENT MANAGEMENT

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.

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.

C. Hoare & Co. Stability and Integrity 37 Fleet Street We offer charities a full bespoke service across investment management, banking, London lending and cash administration. EC4P 4DQ • Stable family ownership for over 340 years Simon Barker, • Strong risk-adjusted performance Head of Charities • Fully unconflicted with no in-house funds or products T: 020 7353 4522 • Simple fee structure E: [email protected] • Award-winning service W: www.hoaresbank.co.uk • Longstanding connection with the charity sector • Values supported by philanthropic family

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. Suppliers Directory

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INVESTMENT MANAGEMENT

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

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 8 Finsbury Circus, London EC2M 7AZ We like to work in partnership with our charity clients which means you will have direct access to the person managing your charity’s investments, resulting in a portfolio that For further information please contact accurately meets your needs and is as individual as your charity. James Brennan: Key facts E: [email protected] T: 020 7965 7102 • £4.1 billion of charitable funds under management W: rathbones.com/charities • Over 1,000 charities • Segregated or pooled investment Rathbone Investment Management is authorised • Dedicated team of charity investment specialists by the Prudential Regulation Authority and regulated by the Financial Conduct Authority • A history grounded in philanthropy and the Prudential Regulation Authority. All figures as at 31 December 2016.

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 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

Sarasin & Partners manages approximately 400 charities* with over £6.1 billion in Sarasin & Partners LLP charitable funds*, representing over 40% 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 £14.2 billion* (*as at 30.06.2017). 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 3,000 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.

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.

INVESTMENT REVIEW SERVICES

TSA Independent Charity Reviews 50 Andover Road, TSA provides independent investment reviews and training for trustees to assist with fund Tivoli, Cheltenham, management. GL50 2TL We can help you with:- T: 01242 263167 • Reserves Policy Developing a comprehensive Investment Policy F: 01242 584201 • Investment policy review – aims & objectives E: [email protected] • Establishment of investment mandate for your manger to work with. W: www.3sector.co.uk • • Independent Search & Selection process – designed to help you look for the right manager • Continual Trustee guidance to help monitor your investments, and keep up-to date • Advice on Ethical & SRI approaches to investment MOBILE

The People’s Operator (TPO) is the mobile network that gives back to causes: The People’s Operator (TPO) 10% of customers’ monthly spend is directed to their cause of choice at no cost to John Finch them. In addition, 25% of TPO’s profits are passed to the TPO Foundation to Partnership Development Officer distribute to good causes. The People’s Operator TPO offers a great range of Pay Monthly contracts and Pay As You Go bundles, 40 Underwood Street running on the UK’s biggest mobile network, supported 7 days a week by the TPO London, N1 7JQ in-house customer services team. T: 0207 251 6648 Visit our website today to see how your cause can benefit: E: [email protected] W: www.thepeoplesoperator.com www.thepeoplesoperator.com Suppliers Directory

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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.

PS Financials - Powering Better Business Decisions PS Financials Ltd PS Financials have been providing core accounting, purchasing, budgeting and reporting Park House, Peterborough software to the Not-for-Profit sector in 58+ countries for over 12 years. PS Financials has been chosen by all types of Not-for-Profit organisations with incomes ranging from £1 million to Business Park, Lynch Wood, over £200 million per annum. Peterborough, PE2 6FZ. PS Financials is developed for the most modern computing environments including the Contact: James Vear CLOUD, hosted or locally installed environments. PS Financials uses its Unified Ledger design E: [email protected] to provide powerful analysis and business intelligence, coupled with instant consolidation, T: 01733 367 330 process automation and ease of use.

Charity Solutions

The UK’s top charity experts can help you! Greenacre Associates Ltd Affordable, flexible and practical help from Greenacre on demand services PO BOX 464 Bridgwater Using our large team of professional associates we can deliver tailored support and advice TA6 9GX to charities quickly and affordably. T: 0345 222 1539 Low Development Costs! We have comprehensive materials covering financial management (including independent examinations); project development, management and delivery; E: [email protected] fundraising and bid writing; trustee and staff training; risk analysis; and much more. W: www.Greenacregroup.co.uk Greenacre Associates Ltd have been providing solutions for the not for profit sector at all levels over the past 5 years. Our Associates are drawn from professional spheres as diverse at Accountants and Lawyers to fundraisers and event managers but all have established experience in this sector and demonstrable track records of achievement.

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 4386 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 FREE TO ATTEND * SUSTAINABILITY SUMMIT ESG, SRI, Impact, Sustainability and Governance THURSDAY 1 MARCH 2018 De Vere Grand Connaught Rooms, London

AGENDA ANNOUNCED!

08:30 - 08:55 Registration and refreshments 12:25 - 12:50 Sustainability Robert Hardy, Managing Director, J.P. Morgan Asset Management 08:55 - 09:00 Chairman’s welcome: Simon Howard, Chief Executive, UKSIF 12:50 - 13:15 Why is sustainable investing the key to the future? 09:00 - 09:25 KEYNOTE speaker: Neena Gill CBE, Member of the European Parliament, Victoria Barron, Responsible Investment Analyst, Newton Investment The Labour Party Management & Raj Shant, Portfolio Manager, Global Equity Team, Newton Investment Management 09:25 - 09:50 Actions speak louder than words Jillian Reid, Principal, Responsible Investment Team, Mercer 13:15 - 14:00 Lunch

09:50 - 10:15 How ESG integration helps generate consistent alpha 14:00 - 14:25 Holistic approaches to climate change risk into Lewis Grant, Senior Portfolio Manager, Global Equities, Hermes investment strategies Murray Birt, Vice President, ESG Thematic Research Strategist, Deutsche 10:15 - 10:40 Panel discussion: How can smart beta ful l your ESG investment needs? Asset Management Exclusive global research preview Panellists: Professor Gordon Clark, Oxford University, Boyan Filev, Co-Head Quantitative 14:25 - 14:50 KEYNOTE speaker: Butch Bacani, Programme Leader, UN Equities, Aberdeen Standard Investments & Doug Morrow, Associate Director, Thematic Environment’s Principles for Sustainable Insurance Initiative Research, Sustainalytics 14:50 - 15:15 Sustainable investing – Moving into the mainstream 10:40 - 11:05 It’s time to make a positive impact Mike Fox, Head of Sustainable Investments, Royal London Asset Management Bruno Bertocci, Senior Portfolio Manager and Managing Director, UBS 15:15 - 15:40 Approaching ESG integration in emerging markets 11:05 - 11:35 Co ee Break Nicholas Morse, Portfolio Manager and Analyst, Comgest

11:35 - 12:00 M&G Perspective on Sustainability 15:40 - 15:45 Chairman’s summary Speaker to be con rmed, M&G 15:45 onwards Drinks reception and networking 12:00 - 12:25 KEYNOTE speaker: Edward Mason, Head of Responsible Investment, Church Commissioners for England

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