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On the Global Agenda Social media Accounting Pensions roundtable The challenges and opportunities The new Statements of Recommended Experts debate the issues facing presented by social media channels Practice for charities charity pension provision October/November 2014 l www.charitytimes.com Social impact investment on the global agenda CT_november2014_cover.indd 1 18/11/2014 10:39:09 They don’t stick their heads in the sand and nor do we. It’s a myth that ostriches stick their heads in the sand when they are frightened. At Sarasin & Partners, we do not flinch in the face of volatile markets and difficult decisions. By working closely with over 300 charities whose investments we manage, we ensure that each has a mix of assets that is suitable to its circumstances. Each charity’s investment strategy is reviewed regularly so they can face the fiercest weather with confidence. If you would like to draw on over 20 years’ experience to make sure your investment policy always stays on course, please call us on the number below. Maybe it’s time to ruffle a few feathers? Please remember that past performance is not a guide to future performance. +44 (0) 20 7038 7000 www.sarasin.co.uk/charities Committed to charity investment. Please note that the value of shares and the income from them can fall as well as rise and you may not get back the amount originally invested. This can be as a result of market movements and also of variations in the exchange rates between currencies. Sarasin & Partners LLP is a limited liability partnership registered in England and Wales with registered number OC329859 and is authorised and regulated by the Financial Conduct Authority. © 2014 Sarasin & Partners LLP – all rights reserved. SAR_Charity_Times_Ostrich_FullPg_Feb14.indd 1 10/02/2014 11:08 EDITORIAL COMMENT Editor Matt Ritchie [email protected] Perception and impact 020 7562 2411 Contributing Writers George Bangham, Neil Cleeveley, First impressions are funny things. They can be hard to Jay Kennedy, Joe Lepper, Tris Lumley, shake, which can of course be good or bad. Maurice McLeod, Jenny North, As a very new arrival to the sector I am pleased to Antony Savvas, Becky Slack, Rob Wilson report that my first impressions have been positive. It has Design & Production been a pleasure meeting the people, learning about the Matleena Lilja causes they champion, and hearing the issues they face. [email protected] Less happily, this positive view of charities is not 020 7562 2400 shared universally. Commercial Manager An NPC survey carried out in October found that on Cerys Brafield average UK adults rate their trust in charities as a 5.9 out of 10. Perceptions [email protected] varied, with those most likely to mistrust charities being those who perceived 07766 662 610 them as political organisations, or principally funded by government. Those Advertising Manager who felt charities were large, professional organisations were also more likely Sam Ridley to mistrust them. [email protected] NPC chief executive Dan Corry said the results should be a wake-up call for 020 7562 4386 the sector. He said: “Where charities do terrific work, and can prove the positive Subscriptions impact they have on the lives of people who depend on them, they should be Joel Whitefoot shouting this from the rooftops, starting now.” [email protected] An unsurprising view, given impact is at the heart of NPC’s raison d’être. 020 8950 9117 And it’s a theme that runs through this issue. Subscription Rates (6 issues pa) Our cover story (p26) focuses on social impact investment, which has been £79pa registered charities to the fore recently thanks in part to delivery of the G8 Social Impact Taskforce’s £119pa rest of UK, £127pa EU £132pa elsewhere report on building the market worldwide. NPC’s Tris Lumley co-chaired the taskforce’s UK national advisory body’s working group on impact measurement, Printed by Warners Midlands and writes that “if impact investing flourishes, we can only be sure it will deliver All rights reserved. The views expressed on its potential if it puts impact measurement at its core” (p14). are not necessarily those of the publishers. This extends to charity accounting (p24), an area undergoing change with ISSN : 1355-4573 new statements of practice come into force. Disclosure requirements around Published by charity remuneration have made some uncomfortable, understandably given Perspective Publishing, 6th Floor, the controversy around chief executive pay. But the Charity Commission’s Nigel 3 London Wall Buildings, London EC2M 5PD Davies argues that charities can use the new framework as an opportunity to www.perspectivepublishing.com better explain what their staff do and the difference they make. And in this issue we feature the winners of the 2014 Charity Times Awards Managing Director (p29). These some many organisations making a considerable and positive John Woods impact, and it is a pleasure to see that recognised. Publishing Director Mark Evans Matt Ritchie Editor Average net circulation of 9,426 copies for July 13 – June 14 www.charitytimes.com 03 03_editors_comments.indd 1 11/11/2014 16:34:00 ALL SYSTEMS ACTIVE A challenging investment backdrop calls, we believe, for charities to take a truly active approach to investing. Being active is not simply about having the conviction to construct strategies and portfolios that look different from market indices. It means approaching all aspects of our clients’ interests in a thoughtful and committed way – from speaking up about the issues that shape investment opportunities and risks, to allocating assets across the capital structure with a clear perspective, investing responsibly and engaging with our clients on ethical concerns. Call Stephanie Gore on 020 7163 6377 or email [email protected] @NewtonIM www.newton.co.uk/charities This is a financial promotion. In the UK, this document is issued by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested. Newton Investment Management is authorised and regulated by the Financial Conduct Authority. The opinions expressed in this document are those of Newton and should not be construed as investment advice. NEWT0020_All_Systems_Active_Charity_Times_271x204mm_FAW.indd 1 22/10/2014 16:59 CONTENTS 24 Features INTERVIEW 26 22 Joe Irvin, CEO, Living Streets Charity Times speaks to Living Streets’ COVER STORY: SOCIAL IMPACT chief executive about the charity’s recent INVESTMENT ON THE GLOBAL AGENDA activity and plans for the future Maurice McLeod reviews the social impact investment landscape following a urry of activity ACCOUNTING 24 A new era for accounting Joe Lepper reviews the changes in News in brief Columns the new Statement of Recommended Practice for reporting charity accounts 6-9 Latest sector news 18 Government Minister for Civil Society Rob Wilson CHARITY TIMES AWARDS 2014 Analysis on collaboration, commitment, 29 Awards review and community Announcing the winners of this year’s 10 Party conference review Charity Times Awards Becky Slack summarises talking 19 Regulation points from the party conferences Jay Kennedy on Charity Commission SOCIAL MEDIA funding 43 New channels, new challenges The Review Social media is ubiquitous in modern life, 20 Social mobility and is in focus for charities. What works 14 Impact Investment: Jenny North on political and what doesn’t on these new channels? The Invisible Heart of Markets accountability for disadvantaged Tris Lumley on the next steps for youth ROUNDTABLE the Social Impact Investment 46 Pension risks and solutions Taskforce Charity Services A panel of charity experts debates the issues of the day in the dynamic 15 People Helping People 58 Suppliers Directory pensions landscape Reviewed by Neil Cleeveley Comprehensive listings of products and services for the sector Sponsored by: 16 The Red, Blue, and Yellow Books of the Voluntary Sector Reviewed by George Bangham www.charitytimes.com 05 05_contents_october-november2014.indd 1 17/11/2014 13:03:25 NEWS IN BRIEF BROOKS NEWMARK stepped down as SUBSTANCE ABUSE CHARITIES Minister for Civil Society in September Addaction and KCA are set to merge, over inappropriate communications with the organisations announced in October. an undercover reporter posing as a female KCA will become a wholly-owned Conservative Party activist. MP for subsidiary of Addaction following the Reading East Rob Wilson has taken the merger, scheduled for January 2015. A portfolio. Wilson was the Shadow Minister transfer of staff is set down for 1 June. for Higher Education from 2007 to 2009, A spokesperson for Addaction said chief and Opposition Whip from 2009 to 2010. executive Simon Antrobus will lead the He has also served as Parliamentary Private merged organisation. As KCA is focused Secretary to the Chancellor of the on the South East where Addaction has Exchequer. little presence the new organisation will ‘bolt on’ to the merged charity, the THE NATIONAL COUNCIL FOR PRIME MINISTER DAVID CAMERON has spokesperson said, but final decisions VOLUNTARY ORGANISATIONS and announced £8m in new funding for the on staffing numbers and governance are Charities Evaluation Services have Charity Commission, to help it tackle yet to be made. Addaction had more than merged. CES staff have moved into NCVO’s abuse including the use of funds for 1,000 employees and an income of almost Society Building offices, joining two extremist and terrorist activity. Funding £51m last year, according to Charity departments in NCVO. CES’s quality will be allocated over three years, and has Commission filings. KCA had just under accreditation experts, who are responsible been announced alongside the draft 500 staff, and income of almost £26m.
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