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.
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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.
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