21/07/10

By Andrew Holt

The public is becoming more discriminating about financial management in charities, according to new public opinion research commissioned by the Charity Commission.

The research shows people are placing increasing importance on knowing how charities spend their money and what they achieve.

The independent survey reveals that 42% of people say "ensuring that a reasonable proportion of a charity’s income reaches the end cause" is the most important single factor influencing their trust.

This has changed since the last time the survey was conducted in 2008, when charities’ ability to make a difference to the causes they work for was the most important factor (35% of respondents).

Overall, the survey, which was conducted by Ipsos MORI, reveals that public trust and confidence remains high, at a mean of 6.6 out of ten.

Charities are also the third most trusted group, just behind doctors (mean 7.7) and police (mean 7.1).

The survey also reveals that people are more likely to trust charities generally if they, or close friends or family members, have had experience of them.

However, people are not always aware of being beneficiaries of a charity. When asked directly, fewer than one in three (30%) say they or their close friends or family have used the services of a charity.

However, when prompted with activities that charities might provide, around nine in ten (93%) say they or close friends or family have used the services of a charity.

Other key findings include:

· The proportion of people reporting high levels of trust and confidence in charities has increased by 5 percentage points (from 36% to 41%) since 2008;

· Almost all those asked (96%) agree that it is important to them that charities provide the public with information about how they spend their money;

· Almost all those asked (98%) believe the role of the Charity Commission is essential, very or fairly important.

· People who are familiar with the Charity Commission report higher public trust and confidence in charities;

· The most common reason why some charities are trusted less is ‘not knowing how their money is spent’ (35% of those who trust certain charities or types of charities less than others).

Commenting on the report, Dame Suzi Leather, chair of the Charity Commission said: “I am delighted that public trust and confidence remains so high, and that charities are among the groups most trusted by people. As public spending declines over coming years, charities will rely ever more heavily on this public support.

“The report indicates that people are becoming more interested in knowing how charities spend their donations. Charities will need to respond to more discriminating donors by explaining their spending decisions to the public and by demonstrating what they achieve.

“We are also urging charities to submit their annual returns to us on time; this new research underlines how important it is for charities to avoid a ‘red mark’ against their name on the Commission’s online register.

"I hope that the valuable data in this report encourages charities to be even more careful to tell the public how they use their funds effectively to make a difference to the causes they work for. This will help ensure the high levels of public trust and confidence are maintained and improved.”

Home     More News


Other stories you may find of interest:

David Cameron: Leadership for a better Britain
David Cameron put the Big Society at the heart of his keynote conference speech yesterday, stating: "My driving mission in politics is to build a Big Society, a stronger society." He said: "It starts with families. I want to make this the most family-friendly government the country has ever seen. More childcare. More health visitors. More relationship support. More help with parenting. And for the 120,000 families that are most troubled - and causing the most trouble - a commitment to turn their lives around by the end of this Parliament."

Budget 2011: Sector verdict is broadly positive
The sector has given its verdict on the budget, and there is much positive comment, but this is tempered by some disappointment and criticism. The Chancellor’s budget speech did herald some significant – and in some cases unexpected – changes to the reliefs available for charities and philanthropists. Key measures announced in the Budget include proposals to simplify Gift Aid, encourage wealthy people to give more to charity...

Sector verdict on the Open Public Services White Paper
The Government's modernisation of public services and promise to give people choice and control over the services they use, and end the ‘get what you’re given’ culture, has been met with sector responses that range from the lukewarm to ice cold. ACEVO warned about facing down vested interests, NCVO complemented the paper on a useful start but also the need for a level playing field, a message reiterated by the Social Enterprise Coalition in more forceful terms, and CAF noted that commissioners at all levels need to be truly empowered to value social impact...