Good morning, It is a pleasure to be here with you today, and I am grateful for the chance to say a few words. I will use my time to set out, in broad terms, what you can expect from the Commission under my leadership as Chair, and in the years ahead: both what is likely to evolve and what I hope will remain unchanged. This dual theme of continuity and change will, I expect, be familiar to many of you, as leaders of ...
Good morning, It is a pleasure to be here with you today, and I am grateful for the chance to say a few words. I will use my time to set out, in broad terms, what you can expect from the Commission under my leadership as Chair, and in the years ahead: both what is likely to evolve and what I hope will remain unchanged. This dual theme of continuity and change will, I expect, be familiar to many of you, as leaders of purpose-led organisations. My experience has taught me that we cannot remain true to our mission unless we are prepared to adapt and evolve in the face of changing circumstances. But that change is never a purpose in itself. And I have learnt that sometimes remaining steady requires as much courage as trying something new. Context for the sector Much has been said about the challenging financial circumstances facing charities. We are acutely aware that recent geopolitical developments have deepened cost pressures for households and organisations alike, at a time when demand on charity services has been high. The Commission’s first annual Charity Sector Risk Assessment, published last year, confirmed that financial resilience was the sector’s defining challenge. Annual return data indicates that income is now exceeding expenditure across the sector, with a narrow overall surplus – but far below pre-pandemic margins, and very unevenly spread. It seems likely that this year’s assessment, which we will publish over the summer, will reflect a similar picture. Charities, of course, are not alone in that strain. Alongside financial pressure, there are impacts less easy to measure. While for generations in the West we could be assured that the next generation would have it easier than the last, that expectation has reversed. This uncertainty is fuelling cynicism, tension and division within our society, which impact charities directly. We have heard harrowing accounts of people facing threats of death and horrific violence, simply for the work they do in delivering on their charity’s lawful purposes. And we see debates in which the aim seems not so much to persuade others, but to undermine their right to hold different views. We seem to be losing the ability to disagree respectfully – to bear that other people have different worldviews and lead different lives. I am grateful to my predecessor Mark Simms for highlighting these developments and speaking out against them. But I think I speak for Mark, and for the whole board of the Commission, when I say that despite these challenges, we have great hope. And yet, set against this backdrop, the achievements of the charitable sector continue to be extraordinary. World-leading medical research that saves lives across the globe. Arts and cultural institutions that are not just a source of national pride but a driver of economic growth. Organisations supporting, in a multitude of ways, the most vulnerable in our society – a group most of us, at any given time, might fall into: foodbanks, care homes, hospices. And networks of local and community organisations – often invisible to policymakers – that hold neighbourhoods together, and that sound the alarm when things go wrong. Strong civil society is not a happy outcome of growth; it is a prerequisite for it. And in fast-changing times, the social resilience that charities build and sustain is more valuable than ever. Charities as a force for unity Because charities offer a great bulwark against division and hatred. Not because your work is cosy and uncontroversial – often it is quite the reverse. But because you can and must demonstrate that your charity’s work is led not by personal interest but by purpose, motivated by altruism and compassion. And because charities so often bring together people who might otherwise have little in common. Charities supporting people with specific health conditions will support them regardless of worldview, heritage, political affiliation or social background – connecting people through deeply personal shared experiences, despite wider differences. Charities that promote our natural habitats and cultural heritage do so on behalf of all parts of society. Charities that campaign for the rights of the most vulnerable are delivering on principles of compassion and grace reflected in all faiths and all cultures. But charities draw their moral authority not only from what they do, but from how they do it. Sound governance is not just a means to better decision-making – it is at the heart of what makes charities distinct, and the source of the high trust they hold. Study after study shows that what matters to people is that charities are led in a way that ensures funds reach the end cause, that those funds make a real difference, and that the charity operates to high ethical standards. There is remarkable consistency in these expectations, over decades and indeed centuries. Good governance is the bedrock of the special status charities hold in our society. It is the defence charities hold against those who might wish to undermine their activities for partisan reasons, or restrict charities to the realm of the consensual and unchallenging. And we have been here before. The sector has weathered Section 28, the impact of Lobbying Act, and a global financial crisis that at a stroke reduced the capital of foundations on which so many charities depended. Those were not easy times. I do not want to offer false cheer, and I do not wish to minimise the hardship many are experiencing today. But I do want to celebrate the resilience that has defined this sector through each of those chapters. Charities are not defined by the size of their income. They are defined by their strength in delivering on their purpose. The role and work of the Commission The Charity Commission plays a crucial role in both protecting charities’ rights and upholding the expectations placed on those running charities. And we must do so with a steady hand, and unwavering attention to the law. My view is that this matters now more than ever. The Commission must be seen as an honest broker in times of division – not captured by one side of divisive debates, but with a laser-sharp focus on what the law requires. The Commission’s role is not to be agreeable at all times to all those with an interest in our work – to sector leadership, to government, to political interest groups. Our role is to serve the public by protecting the great treasure of charitable activity in our country, and to promote the trust on which that activity rests. I am conscious that expectations of the Commission are not always consistent – and sometimes pull in opposite directions. On one hand, there is a belief that we should be able to prevent every possible wrongdoing, and that any failure is a failure of regulation. On the other, there is a view that we should keep out of the way – that our role is to enable innovation and trust charities to get on with their work. My own view is that this is a healthy tension, and one I do not want to resolve too neatly. But it does require us to be clearer about both the limits of our powers and the breadth of our responsibilities – and I am committed to that transparency. Like all public organisations, we must also change to keep pace with changing circumstances. Our powers in tackling the extremist and terrorist abuse of charities need strengthening, so that we can take more decisive action where those involved misuse their platform to spread vile hatred and division. We have also been working to ensure our guidance actively enables charities to do their work well, not just to avoid mistakes. Recently, we published new grant-making guidance which seeks to enable grant-making charities to deliver on their purposes efficiently and with confidence. And we ourselves must continue to improve the service we provide to all those who come into contact with us – notably strengthening our online services to ensure those who need us experience as smooth an end-to-end service as possible. This is particularly important in the face of growing demand, both at registration and in our compliance casework. This will include work to better tailor our communications with trustees, so that you receive the information you need, when you need it. We are grateful to the Treasury for investing in this improvement work, and we hope you will begin to feel the difference in the months and years ahead. Conclusion These changes are not about altering the purpose of the Commission. They will allow us to better deliver on the remit Parliament has set for us, in the context in which we are now working. The challenge of balancing steadfastness of purpose with openness to change is not unique to regulators. Many of you will face similar challenges – perhaps in response to financial pressures, perhaps because of new opportunities for meeting need or delivering on your cause. The task for you is the same as for the Commission’s board: to be mindful in every decision of your core purpose, to be circumspect in reacting to every fad and fashion, and yet to remain agile and alive to the need for constant improvement. That challenge demands intellectual rigour and energy. And I want to thank all those here who serve as trustees, or in any other way volunteer their time for a charity. Your generosity is not always acknowledged as it should be. But it is seen and appreciated at the Commission – and it is felt, every day, by those who benefit from your charity’s services, and within the communities you create, sustain and strengthen. Thank you.
Speech Brief