Stories & Grievances
The Charity Commission for England and Wales Has Very Important Criteria for Transparency and Accountability
the standards have global relevance to charitable work
RS8: Transparency and Accountability
Foreword Charities play a rich and varied role in modern society but their continued success is dependent upon the public's trust and confidence in their work. The Strategy Unit (SU) report Private Action, Public Benefit recognised this link, with the government's response to the report commenting that "...easy access to accurate and relevant information about charities is essential for real accountability, and for trust and confidence in charities." (1) A number of the SU's recommendations have a direct impact on charities' transparency and accountability. One of these recommendations, that larger charities complete an annual Standard Information Return (SIR) about their work, achievements and impact, is currently being piloted in consultation with the sector. Another recommendation, included within the draft charities Bill, gives the Charity Commission a specific statutory objective to enhance the accountability of charities to donors, beneficiaries and to the public. These changes, together with the development of Guidestar-UK (a new information portal displaying information from charities' Annual Reports and Accounts plus supplementary material) will help to increase the amount of information available to stakeholders and so increase charities' accountability. The Charity Commission interprets transparency and accountability as providing relevant and reliable information to stakeholders in a way that is free from bias, comparable, understandable and focused on stakeholders' legitimate needs. This report looks at what people think is important in this area and examines the level of transparency and accountability a charity demonstrates in its reporting. We consider compliance with the Statement of Recommended Practice (SORP) to be the minimum standard of accountability, particularly for the largest charities. The forthcoming SORP review consultation will create a focus for better reporting of charities' objects, achievements, results, and impact. This report presents the findings of an analysis of the information provided in the Annual Report and Accounts and the Annual Review of a sample of 200 of the largest charities. The analysis was not designed to assess of the extent of SORP compliance in the sector. Instead it assessed the extent to which the charities in the sample had gone beyond minimum requirements to provide information that accounted fully and transparently for their performance during the year. Our evidence is that the general standard of performance against the transparency and accountability framework is not satisfactory. Whilst there are some very good examples, too many charities in our study did not meet basic requirements. We hope that charities will take both this message and what the report shows about good practice to heart and respond constructively. John Stoker Chief Charity Commissioner |