Increase in Whistleblowing to the Charity Commission

Jul 26, 2023
Author: Simon Bladen
Simon is one of the firm's Audit Partners. Simon is responsible for looking after the firm’s legal, charitable and not-for-profit clients.
Increase in whistleblowing to charities

Whistleblowing plays a vital role in exposing wrongdoing, fostering transparency, and holding organisations accountable. Whistleblowing occurs when individuals within an organization bring to attention unethical or illegal practices, aiming to expose them to the relevant authorities. In this case the Charity Commission.

There has been a notable increase in the number of whistleblowing reports submitted to the Charity Commission. In the year to March 2023, the Charity Commission received 327 whistleblowing reports compared to 281 in 2021-22, an increase of over 16%. It is thought that the increase is largely caused by a number of enquiries relating to charities linked to individuals sanctioned because they are connected with the Russian Regime following the invasion of Ukraine.

Although whistleblowing has increased the sector’s income for the financial year 2022/23 increased by almost £4bn compared to the previous year (£83.8bn to £88bn). Furthermore, research from the Charity Commission demonstrates that even with the increase in whistleblowing, trust and confidence increased from 6.2 in 2022 to 6.3 in 2023 (both scores are out of 10). Ranking in second place with only doctors ranking higher.

 

Conclusion

Usually, an increase in whistleblowing reports would result in public trust in charities decreasing. However, because the increase in whistleblowing reports are largely linked to the Russian Regime which is an isolated event, public trust in charities does not seem to have been affected.

How can we help?

At Hawsons our accountants recognise that not-for-profit organisations have very different requirements from other businesses and are currently exposed to a challenging economic climate.

Our dedicated team of charity accountants fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector. Irrespective of your size we wish to support you to maximise the benefits you could achieve through our specialist professional advice.

Charities & not-for-profit organisations are currently facing extensive changes in their regulatory and legal framework. Given the additional pressures on fundraising, complex tax regimes, internal risk exposure, and stakeholder demands, it has never been more important to obtain specialist professional advice.

Simon Bladen

Partner

slb@hawsons.co.uk

Free initial meeting

Related content

Alternative Sources of Charity Funding

The Importance of Diverse Funding In the UK, charities play a key role in supporting communities, addressing issues within our society and changing people’s lives for the better. But for charities to be able to deliver these vital services they need to be able to...