Safeguarding the Vulnerable
Following the Oxfam scandal, all three charity regulators have highlighted the importance of safeguarding vulnerable beneficiaries, employees and volunteers through various publications, news alerts and updated guidance. The recurring theme is that trustees should proactively safeguard and promote the well-being and welfare of their charity’s beneficiaries.
Trustees are accountable and responsible for putting things right when they go wrong and therefore need to assure themselves that their safeguarding practices are robust and controls are in places to ensure the policies are effective. Specifically, trustees should:
- review their charity’s safeguarding, governance and management arrangements and performance if they have not done so within the last 12 months
- contact their regulator about safeguarding issues, or serious safeguarding incidents, complaints or allegations which have not previously been disclosed to the regulator or the appropriate authorities. This would include reporting ‘serious incidents’ / ‘notifiable events’.
OSCR has highlighted that it views charities who submit ‘notifiable events’ in a positive light as it shows that trustees are generally taking correct steps to sort out the relevant issues.
CCNI has published new guidance on reporting serious incidents which highlights when a serious incident takes place, including what charity trustees are expected to report, what happened and explain how it is being managed.
Guidance: goo.gl/QueWCz, goo.gl/LyG9UB and goo.gl/e466Sw
Who Can Run a Charity
From 1 August 2018 changes to the rules in England and Wales mean there will be more restrictions on who can run a charity. The current automatic disqualification rules only apply to trustees. The changes introduce new grounds for disqualification and will for the first time also stop disqualified people from being able to act in some charity senior manager positions including the Chief Executive and Chief Finance Officer (or equivalent) positions.
If anybody at your charity will be disqualified when the new rules change on 1 August 2018, they can apply for a waiver of the disqualification using the application form.
Charities must update their recruitment checks to avoid appointing or retaining disqualified individuals as trustees or into senior manager positions.
Guidance: goo.gl/BAUiwB
Taken on Trust
CCEW response to the ‘Taken on Trust’ research of charity trustees states that the findings are sobering and that trustees do not reflect the communities that charities serve. Trustees are generally disproportionately older, highly educated and white; men outnumber women by two to one and three-quarters earn above the national median household income.
A diverse board can bolster a charity’s resilience and therefore this presents an opportunity. As a reminder when recruiting new trustees, ensure consideration of a more diverse base.
Guidance: goo.gl/UH66Q2
Bank account guidance
The three charity regulators have issued an alert to charities covering circumstances when they receive, hold, move or use money, particularly those charities moving funds internationally. It is the regulators’ view that all charities need to have access to, and use, a bank account in the charity’s name in the regulated banking system. It is noted that:
‘Appropriate use of a bank account is a good way for trustees to demonstrate audit trails for the receipt and movement of money, and that they are discharging their legal duties to keep funds safe and meeting key elements of good governance and prudent financial management.’
They highlight that they would be concerned if a charity did not have a bank account in its name and look to remind trustees that other safeguards including appropriate financial controls should be in place and all records and documentation in connection with their use are kept.
Guidance: goo.gl/gZgV94
Free guide to help charities avoid cybercrime
The National Cyber Security Centre (NCSC), has published a free guide for small charities to help them understand the types of attack that they might be vulnerable to and how to protect themselves. Most charities have little experience of this area. The CCEW has also issued updated guidance on protecting your charity from fraud.
Guidance: goo.gl/7Pu1h9 and goo.gl/ioC7VM
This publication has been prepared by Robinson Reed Layton LLP. It is to be treated as a general guide only and is not intended to be a comprehensive statement of the law or represent specific tax advice. No liability is accepted for the opinions it contains, or for any errors or omissions. All rights reserved.