Booming Social Enterprise Ethics of it all The Independent Mission Developments contributing to a Ethical banking, investment and Cases of charity campaigning and flourishing social enterprise sector insurance relevant to the sector independence brought into question June/July 2013 l www.charitytimes.com Fundraising challenges We believe only specialists can understand a charity’s needs. As experts in the not-for-profit sector we understand its complexities and the differing individual insurance needs of charities like yours. Our flexible cover will be perfect for you because we can offer your charity insurance that’s tailored exclusively to your requirements, so your assets and liabilities are properly protected. That’s because we don’t believe in one size fits all policies, we prefer a more personal approach. For more information about Ansvar, talk to your broker or visit our website: www.ansvar.co.uk Insuring the heart of your community Business division of: Ecclesiastical Insurance Offi ce plc. Registered Offi ce: Beaufort House, Brunswick Road, Gloucester GL1 1JZ. Registered No. 24869 England All content © Ecclesiastical Insurance Offi ce plc 2013 Member of: Association of British Insurers ABI, Financial Ombudsman Service FOS. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. EDITORIAL COMMENT Editor Andrew Holt [email protected] A tale of two reports 020 7562 2411 Contributing Writers Mark Cann, Niall Cooper, Rhodri Davies, In June there was something of a tale of two reports Daniel Fluskey, Peter Holbrook, Joe Lepper, for the sector and the charity regulator, The Charity Peter Lewis, Alistair McLean, Alex Murdock, Commission. Philip Smith, Katherine Smithson, Rowanne The first, by the Public Accounts Committee strongly Westhenry, Helen Yates criticised the Charity Commission’s procedures for Design & Production regulating charities in its examination of the Cup Trust Matleena Lilja scandal: the organisation that was supposed to have an [email protected] ‘income’ of £176 million, but only ever gave a paltry 020 7562 2400 £55,000 to charitable causes. Commercial Manager This report presented the most damning indictment of the work of the Charity Cerys Brafield Commission: noting the Cup Trust never met the legal criteria to qualify as a [email protected] registered charity; the Commission’s approach to regulation and enforcement 07766 662 610 lacked rigour and presented evidence suggesting the Cup Trust case could Advertising Manager just be the tip of an iceberg, and with it, possible worse scandal for the sector. Steve Good Margaret Hodge, chair of the Committee of Public Accounts Committee, said [email protected] 020 7562 2435 the Commission has carried out a few enforcement visits, but rarely mounts prosecutions and removes very few trustees; and in the last four years it had Subscriptions only removed one trustee, only suspended four trustees, and appointed interim Joel Whitefoot managers of charities on five occasions. Hodge also noted that in the past [email protected] 020 8950 9117 25 years, the Committee and National Audit Office repeatedly found severe shortcomings in the Commission’s performance. All very damning, but also very Subscription Rates (6 issues pa) fair in the context of the investigation. £79pa registered charities £119pa rest of UK, £127pa EU In something of a slight contrast, the second report, by the Public £132pa elsewhere Administration Select Committee, in its report on the implementation of the Charities Act 2006, said The Charity Commission is being asked to do too much, Printed by Warners Midlands with too little. A different narrative entirely. This report observed how the All rights reserved. The views expressed are not necessarily those of the publishers. charitable sector is at the heart of UK society: involving millions of people and £9.3 billion received in donations in 2011/2012 with around 25 new applications ISSN : 1355-4573 for charitable status are received by the Charity Commission every working day. Published by This viewed the Commission’s work from an entirely different perspective. It Perspective Publishing, 6th Floor, said though, that the Government should revise the statutory objectives for the 3 London Wall Buildings, London EC2M 5PD Charity Commission and to allow the Commission to focus its limited resources www.perspectivepublishing.com on regulating the sector. Depending on the narrative you wish to create around the Charity Commission, you can cite either of these two reports. But as ACEVO Managing Director CEO Sir Stephen Bubb noted: “The sector needs a regulator that will use its John Woods powers to clamp down on bogus charities that undermine public trust.” It is this Publishing Director issue of public trust that is vital. If public trust is broken, then charities will seldom Mark Evans get the support in the future as they have in the past. Therefore the Charity Commission shortcomings identified here need to be dealt with, and fast. Andrew Holt, Editor Average net circulation of 10,373 copies for July 11 – June 12 www.charitytimes.com 03 1342C_CAF-Bank-FixedRate_TICKS_Ad_VP_100613.indd 1 11/06/2013 13:05:30 CONTENTS 24 34 23 COVER STORY: FUNDRAISING Contrasting evidence suggests the fundraising environment is tougher than it has ever been while other data suggests it is equally ripe with opportunity 43 News In Depth 15 Better Public Services Features Reviewed by Alex Murdock 08 Volunteer centres SOCIAL ENTERPRISES Centres face substantial hit Columns 30 The sector’s beating heart 09 NCVO Almanac Andrew Holt analyses the many key Sector generated extra £2bn 16 Sector accountability initiatives and developments that are Katherine Smithson on finance contributing to a flourishing social Analysis and Profile 17 Fundraising Complaints enterprise sector Alistair McLean on the FRSB report 12 Sector Analysis 18 Civil Society Ethical FINANCE Cathy Pharoah analyses Mark Cann on Lee Rigby’s murder 34 The ethics of it all Migrant and minority giving 19 Social Enterprises Rowanne Westhenry, Philip Smith 20 Profile Peter Holbrook on trading and Helen Yates look at the Andrew Holt met Anthony Nolan developments in ethical banking, CEO Henny Braund ethical investment and ethical Charity Services insurance arenas relating to the sector The Review 46 Suppliers Directory Charity campaiGNING 12 Applying behavioural insight Comprehensive listings of products 43 The independent mission Reviewed by Daniel Fluskey and services for the sector Charity campaigning and inde- 13 The lies we tell ourselves pendence have been brought into Reviewed by Niall Cooper question by some high profile 14 Achieving social impact at scale examples, and, warns Joe Lepper, Reviewed by Rhodri Davies are still open for debate www.charitytimes.com 05 2013 Charity Times Awards Shortlist Charity of the Year: with an income of implemen-tation manager, Bhagavat • Personal Finance Education Group less than £1million Educational Trust • VisitWoods/The Woodland Trust • Bag Books • Clive Stafford Smith, founder and director, • Lessons from Africa/Send a Cow/Positive • Brightside Reprieve • Bridging the Gap/Inclusion Trust • Busoga Trust • Don’t Cover It Up/Refuge • Bromley Mencap Rising CEO Star • Create (Arts) • Delia Donovan, managing director, Berkshire PR Team of the Year • St Petrock’s • East & South Bucks Women’s Aid • Alcohol Concern • TwentyTwenty • Nicky Goulder, chief executive, Create (Arts) • Alzheimer’s Society • SkyWay • Clare Algar, executive director, Reprieve • Battersea Dogs & Cats Home • Yorkshire MESMAC • Sonal Shah,chief executive, London Community • Crisis Foundation • Diabetes UK Charity of the Year: with an income • Dr Katie Perry, Chief Executive, Daphne • Electrical Safety Council/Forster Communications between £1million and £10million Jackson Trust • Fairtrade Foundation • Alzheimer’s Research UK • Kate Lee, chief executive, Myton Hospices • Helpless campaign/St John Ambulance • Royal Free Charity • Muscular Dystrophy Campaign • Missing People Fundraising Team of the Year • Westminster House Youth Club • Action Against Hunger International Charity • Laureus Sport for Good Foundation • Battersea Dogs & Cats Home • Action Against Hunger • Living Streets • Cancer Research UK • Bhagavat Educational Trust • Halton Haven Hospice • MacIntyre • Muslim Aid • The Myton Hospices • Laureus Charity of the Year with an income • SPANA • Environmental Investigation Agency of more than £10million • Shanti Life • Concern Universal Charity Principal of the Year • Horder Heathcare • Henny Braund, chief executive, Anthony Nolan HR Management Award • Stroke Association • Chris Burghes, chief executive, Royal Free Charity • Addaction • StepChange Debt Charity • Timothy Pain, chief executive, Forest YMCA • Diabetes UK • Muslim Aid • Claire Horton, chief executive, Battersea Dogs & • Fairtrade Foundation • Royal British Legion Industries Cats Home • Living Streets • Victim Support • Dr Denise Barrett-Baxendale, chief executive, • Teach First • Everton in the Community Best New Charity • Anna Whitty, chief executive, ECT Charity Financial Management Award • Cybersmile Foundation • Quaker Social Action • Dame Kelly Holmes Legacy Trust Campaigning Team of the Year • Mousetrap Theatre Projects • StreetGames • Body & Soul • Huntington’s Disease Association • Orchid Project • Battersea Dogs & Cats Home • The British School of Osteopathy • The Fcancer Project •