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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

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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 February/March 2018 Leadership: Governance: Technology: Interview: Trustee board diversity PR and reputation Cyber security focus Matt Lent A lack of diversity among Oxfam’s Haiti scandal has put Cybercrime is on the rise The Future First CEO on the trustee boards requires the third sector under increasing and charities need to be importance of alumni and how charities to broaden their scrutiny again and reputations able to keep up with the partnerships form part of his governance skills base. need to be pampered. pace of change. future strategy. Leadership / PR and reputation / Technology / Cyber security focus / Future First interview / Investment First security/ Future focus / Cyber Technology / / PR and reputation Leadership Time for a change? Trustee diversification is low among the charity sector. In a crowded pool, changing your approach and refreshing your board’s skillset could be the key to success. February/March 2018 February/March Plus: www.charitytimes.com Sector and investment columns BREAKFAST BRIEFING News Managing investment risks in volatile markets See page 52 for charity suppliers directory cover.indd 1 16/02/2018 11:12:21 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 www.charitytimes.com 03 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. 04 www.charitytimes.com 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 www.charitytimes.com 05 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.
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