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.
Related content
First International Non-Profit Accounting Guidance enters final consultation
The development of the first International Non-Profit Accounting Guidance (INPAG) for non-profit entities has progressed into a third and final consultation. Currently, no international accounting guidance exists for non-profit organisations. What issues does...
Formal volunteering falls to an all-time low
A recent analysis by Pro Bono Economics (PBE) has found that rates of formal volunteering have reached an all-time low as 40% of charities report that volunteering numbers have been insufficient to enable them to meet their main objectives in the last 12 months. Small...
Differences between business and charity accounts
Navigating the financial landscape can be complex, especially when it comes to managing accounts for different types of organisation. While both business and charity financial reporting is essential for their respective entities, they serve distinct purposes and...