Blog Description Copyright @AnthonyDotNet https://www.oscr.org.uk Fri, 07 August 2020 09:48:00 Fri, 07 August 2020 09:48:00 https://www.oscr.org.uk/blog/2020/august/07/an-unequal-picture-the-impact-of-covid-19-on-scottish-charities/ Today we are publishing the full data tables from our survey on the impact of COVID-19 on Scottish charities. The findings are already being used to provide insights on the impact and needs across a range of different groups to help support the Scottish charity sector and the communities and beneficiaries they support as we recover from the pandemic. In May, we contacted all Scottish charities to take a snapshot of how the sector was being affected by COVID-19 and the subsequent lockdown measures. Up to that point, there had been lots of excellent, responsive research, much of it covering specific sectors and addressing  particular topics, but nothing that gave us what we needed - a view across the sector. We received an overwhelming response. In the ten days the survey was open, almost 5,000 charities (representing around 20% of all Scottish charity contacts) had taken the time to share their views. Such a positive response to any survey at a time when the pressures had never been greater, speak to commitment and generosity of the Scottish sector, as well as the sense of urgency. When we first published the findings at the start of June the situation was changing week on week, but aspects of those initial findings were stark. One in five charities in Scotland facing a critical threat to their financial viability at some point in the next 12 months. One in five reporting they would be unable to do what they were set up to do at some point over the same period. Lost income from fundraising affecting over half (51%) and lost income other sources such as trading affecting 42%. Almost all respondents (95%) had taken some form of action, most commonly providing support over the phone or digitally (47%). Over a third (36%) had stopped operating, a quarter (25%) had applied for emergency funding and almost a fifth (19%) had furloughed staff. We also asked about the support that had helped, or would help. Local authority funding (33%) and other independent grant funding (33%) were viewed as most helpful, followed by simplified requirements for reporting on grants and outcomes (32%).  Advice on claiming financial support (51%), more guidance on how charities should continue in the pandemic (46%) and flexibility in reporting deadlines (45%) were top of the non-funding list. Since then we have reflected on the findings and have looked at them in more detail. While the overall results were startling, it was not an equal picture. Smaller charities were much more likely to have stopped operating (45% with income under £25k) than larger organisations (19% income of £100k or more). The critical threat to financial viability in the next 12 months is stronger in charities with more than 11 employees (31%) and those with income over £100k (28%). It is 10% for the charities with income under £10k. Lost income from trading and other sources (not fundraising) is significantly higher for larger charities, affecting 61% of charities with income over £100,000 (42% overall). A significantly higher proportion of sports and recreation charities (56%) and charities working in culture and the arts (48%) reported to have stopped operations than overall (36%). Disruption of services to beneficiaries was reported by a higher proportion of charities working in housing (63%), mental health (65%) and social care charities (55%) than overall (42%). There are many more observations. While it is important to recognise the critical financial impact for larger charities and the disruption to their beneficiaries, it would be wrong to overlook small charities, their key role in leading community resilience and how important that will be in the coming months. The majority of Scotland’s charities are small to medium and we need to learn from the whole picture, including the voices less frequently heard. There are many areas such as health, food and other direct services that have been a priority over the last few months. Over the next period it is important to ensure others, including arts, culture, sports and recreation are supported to ensure our overall wellbeing. The detailed findings show that the picture is complex. The survey achieved its aim of speaking directly to a large and representative cross section of Scottish charities, and we are sharing these detailed insights more widely to enable others to use them to develop a better understanding. We are publishing the full data tables today, along with some basic charts to help visualise the impact on different groups. This is a large and robust dataset. We hope you will be able to use the data to provide further insights on the impact and needs of different groups. While there is a wealth of data, there are areas the survey didn’t capture: what is the nature of the impact on beneficiaries, what about 12 months and beyond? What sort of charity sector will we be regulating then, and what support will it need? We are in the early stages of planning another survey for nearer the end of the year to answer some of these questions. But we are very aware of balancing these needs with the pressures the sector is under. While charities are finding new ways to operate and share their experiences, we are also adjusting. These findings have created new priorities for OSCR. We are considering the partnerships and data that we need to support the sustainability and long-term resilience of the Scottish charity sector. We would like to thank the sector again for responding. The data has already made a difference and the use of the information will be felt for some time to come. #NeverMoreNeeded https://www.oscr.org.uk/blog/2020/august/07/an-unequal-picture-the-impact-of-covid-19-on-scottish-charities/ https://www.oscr.org.uk/blog/2020/august/07/an-unequal-picture-the-impact-of-covid-19-on-scottish-charities/ Fri, 07 August 2020 09:48:00 https://www.oscr.org.uk/blog/2020/july/08/new-protocol-for-land-owning-charities/ Looking at the next few decades, the way our land is owned, managed and used will have a major role to play in the post COVID-19 recovery and contributing to the country’s economic and environmental goals. Significant areas of Scotland are owned or managed by charities, who can play a positive role in meeting these goals. The way land is owned and used affects the quality of life for everyone in Scotland. Realising and applying land rights and responsibilities, as set out in the Scottish Government’s Land Rights and Responsibilities Statement , can reduce inequality and bring mutual benefit to landowners, land managers and communities. Those rights and responsibilities go with all types of land ownership, including land owning charities.  Landowning charities have an important role in communities yet sometimes people can feel unsure of how these ownership structures operate. That’s why it’s vital that charities are aware of Scotland’s land rights and responsibilities principles and actively consider how these are reflected in their governance structures. This might include, for example, greater transparency about the selection of trustees and more robust and regular engagement with communities around their landholding. The Scottish Land Commission has published a new protocol that sets out practical expectations for charities owning land in Scotland. While much good practice already exists, we believe that landowning charities could further improve their transparency, accountability and governance. The new protocols are intended to help improve understanding and transparency about the way charities operate as landowners. They set out expectations on trustees and land managers to manage land in a way that is fair and considers the needs and priorities of the local community. Specific expectations set out in the protocol, include simple steps such as ensuring there is up-to-date, publicly available information about who the trustees are and a ready contact for the landholding. When appointing trustees, consideration should be given to the skills and expertise required and where possible trustees should be appointed from the local area where the land is held so that local communities are actively involved in decisions on the use and management of land in their area. Where there are plans to make significant changes that will impact a local community, charities should follow the procedures set out in the Commission’s Protocol on Community Engagement We are always keen to hear about positive examples of good working relationships and we welcome information about successful collaboration between charities and local communities that can inform case studies, to help others. The new protocol is the latest in a series produced by the Land Commission to encourage practical implementation of the Land Rights and Responsibilities Statement.     For further information visit the Land Commission website or get in touch on info@landcommission.gov.scot or call 01463 423300. https://www.oscr.org.uk/blog/2020/july/08/new-protocol-for-land-owning-charities/ https://www.oscr.org.uk/blog/2020/july/08/new-protocol-for-land-owning-charities/ Wed, 08 July 2020 12:14:39 https://www.oscr.org.uk/blog/2020/july/06/fraud-and-foundations/ Like all organisations, foundations are vulnerable to fraud and cybercrime. While some of these risks apply to all organisations, others come with foundations’ distinct way of working by distributing funds and holding significant assets. ACF has published new guidance on tackling grant fraud. Grant fraud, the dishonest or deliberate use of grant funds, is understandably a major fraud risk for foundations. For many foundations, grant-making is the primary way they pursue their charitable missions, and so they seek to ensure this funding – as well as their time and energy – reaches the right people and causes. New guidance Tackling Grant Fraud builds on an earlier ACF publication that set out the principles of good practice in deterring and detecting fraud, many of which still stand true today. Robust due diligence, sound financial checks and sharing information (in ways that are legally compliant!) are all part of a strong approach to countering fraud. Although grant fraud is only one piece of the fraud puzzle, there are principles that apply across the board. It is important that both trustees and staff understand their roles and responsibilities in relation to tackling fraud. While staff are likely to implement much of the guidance, for example in assessing applicants and carrying out checks, trustees are ultimately responsible for the foundation and its assets, and are crucial in establishing a counter-fraud culture across the organisation. The new guidance echoes these principles bringing in new and evolving considerations. For example, developments in technology have altered the nature of foundation operations – and the risk. Between emails, web portals and online banking, it is possible for most, if not all, of a foundation’s interactions to take place via the internet. Cyber-enabled and cyber-dependent fraud risks are now pervasive, and steps should be taken to ensure the principles of fraud prevention apply online too. This is ever more important as we work The legal and regulatory landscape is constantly evolving. Some rules directly impact on foundation’s operations, for example recently-introduced data protection regulations set higher standards on sharing information. Others have an indirect impact, like global efforts to combat money laundering and terrorist financing which have sometimes affected foundation data collection and reporting. Fortunately, there has also been a wealth of resources provided to help organisations deal with these complex risks and issues. Support from regulators like OSCR, the private sector and charity infrastructure bodies offers foundations a range of tips and tools in the fight against fraud, and we signpost these throughout. Covid-19 While the principles of fraud prevention remain consistent, changes to the way foundations are operating mean that foundations should think how those principles apply in today’s circumstances. This includes both internal changes like remote working arrangements, as well as changes in how grants are being processed and monitored. Many foundations have responded with agility and flexibility to meet surging beneficiary need and uncertainty, finding a balance between existing processes with unprecedented circumstances. Risks and relationships While strong controls can prevent against fraud, they can also feel at odds with the foundation’s efforts to build trusting relationships with its partners and grantees. How can we as funders say we trust our grantees, and also ask for extensive and burdensome checks and documentation? Rather than being at odds, these relationships can be the key to countering fraud. Working with partners and grantees that are aligned to the need to use resources effectively is a solid foundation on which to build a relationship. What’s more, a foundation can develop a counter-fraud approach that works in its own context, taking into account its ways of working and its relationships with grantees and applicants. This includes being led by mission and values in developing processes; see ACF’s forthcoming Stronger Foundations report on funding practices for more on this topic. Risk is also a crucial consideration. Foundations are distinct in their ability to take risks with their funding, addressing issues and communities that public and private funders can’t or won’t. In many cases, it is the ‘riskiest’ work that is most urgent and important; for example, in supporting social movements, the disenfranchised, or those without access to institutional support. Again, it is up to the individual foundation to think through how its counter-fraud approach links to its risk appetite, and what the implications might be. This includes balancing the risks of fraud with the risks of inaction, of diverting applicant resources, and of denting the foundation’s legitimacy or reputation. What next? At ACF we want to hear more from foundations on the issue of fraud to understand current practice and what further support is needed. We’d like to gather case studies as to how foundations have experienced and addressed fraud to share learning and tips, and to help us ensure that the current provisions available for charities take into account any issues unique to foundations. Please email policy@acf.org.uk to discuss further. https://www.oscr.org.uk/blog/2020/july/06/fraud-and-foundations/ https://www.oscr.org.uk/blog/2020/july/06/fraud-and-foundations/ Mon, 06 July 2020 10:24:12 https://www.oscr.org.uk/blog/2020/may/18/covid-19-causing-disagreement-and-conflict-we-are-here-to-help/ This is a challenging time for everyone and the isolation and stress of living in close quarters can cause, or increase, conflict for families, friends, and roommates, and can create challenges for work teams, charities and businesses. At Scottish Mediation we know that conflict creates a wide mix of emotions including frustration, anger, upset and aggression. These emotions are intensified by the lack of the usual social outlets such as chats with friends, family and colleagues and in isolation can escalate into feelings of desperation which may be heightened by stress and worry about COVID-19 itself. For people who are still working, issues over social distancing in the workplace or difficulties around home working can quickly create conflict. Where families with children are in shared housing blocks, noise levels may be increased beyond toleration for possibly elderly neighbours who are confined to their home for most or all of the day. The COVID-19 measures not only aggravate these situations but make it difficult to cope with as face to face advice or discussion is severely limited. We know that mediation can help in these situations as mediators are able to help create the space for a conversation in a way which allows the parties to use creative ways of resolving disagreements and in some instances to repair relationships too. Our mediators would like to do their bit to ease the impact of COVID-19 and so we have launched a new COVID-19 Mediation Service to provide free and reduced cost mediation for issues that have been created or exacerbated by the COVID-19 restrictions. In terms of what might be a suitable dispute for mediation we will be able to speak to you about your dispute and advise on each instance. However these sorts of dispute are likely to be appropriate - Family matters including care of older relatives Flat mates/housemates Landlord/tenant Cooperative or social housing Workplace concerns related to working from home or shared workspaces Neighbours It is possible that some issues may have existed before and were being managed successfully but the additional pressures have pushed them into conflict. Conflicts that would not be within the scope of the service would be: Family cases around divorce and separation including those relating to child contact, Pre-existing conflicts where a process has already started, even if it is worsened by social distancing or self-isolation Conflicts where there is a history of domestic violence. Where the service is not suitable for your dispute, we will advise you if other mediation options are available and how to access them or suggest other resources that may be of use. To access our service simply: Website:  https://www.scottishmediation.org.uk/covid-19-mediation-service/ Email:   admin@scottishmediation.org.uk Scottish Mediation Helpline:   0131 556 8118 We will get back to you to discuss the situation and provide more information and allocate a mediator. The mediation will be conducted by phone or by video-conferencing. The service is free for individuals and organisations with less than five employees and provided at a heavily discounted flat rate of £300 per day for organisations with more than five staff.   May Millward MBE Project Officer Scottish Mediation Network https://www.oscr.org.uk/blog/2020/may/18/covid-19-causing-disagreement-and-conflict-we-are-here-to-help/ https://www.oscr.org.uk/blog/2020/may/18/covid-19-causing-disagreement-and-conflict-we-are-here-to-help/ Mon, 18 May 2020 13:36:19 https://www.oscr.org.uk/blog/2020/may/15/charity-annual-reports-and-accounts-reading-them-through-the-right-lens/ The impact of the COVID-19 pandemic is being felt in every walk of life and charities are no different.  How charities explain what it has been like for them is going to be an important feature of narrative and financial reporting for some time.  For those reading the annual reports and accounts of charities that have been signed off during the pandemic or where the financial year included the pandemic, it will be vital to think about what that charity has been through and how the COVID-19 measures have affected it.  Users of the report and accounts may have some expectations of what has happened and these may or may not match up to the reality. As a reader of the annual report accounts, if you take a moment to consider what has happened and how that may have impacted the operations of the charity, this will help you understand the information presented in the right context and avoid misunderstanding what some of the information might mean.  It is important to realise that given the impact of the pandemic the charity’s finances are unlikely to look similar or comparable to the previous years. The best place to start is with the Trustees’ Annual Report .  This is where the charity tells their story of what’s happened during the financial year.  When unusual or unexpected events occur, the charity trustees should explain how these have affected the charity.  For example, you might expect to find explanations about: how the pandemic has affected the operations and activities of the charity the impact on the beneficiaries how the finances of the charity have been affected how governance arrangements were adapted to cope with the control measures what happened to the charity’s staff and volunteers. During the pandemic, many charities will experience financial challenges while coping with a surge in demand for their activities and services.  Other charities may not have been able to carry out their usual activities but will still have incurred costs.  Financial challenges may have occurred because the charity was not able to carry on its normal fundraising activities, or it was coming to the end of grant funding which couldn’t be renewed or because it did not have any reserves to draw on to help deliver activities.  It may be reasonable to expect to see: a significant decrease in the income received by the charity, which may or may not have a corresponding decrease in the amount spent by the charity a large increase in the amount spent on charitable activities reserves of the charity decreasing a lot as they are used to fund the charitable activities (meaning the net assets figure on the balance sheet for example would decrease) changes in the value of any investments that the charity has as a result of changes in financial markets More substantial changes to the accounts could also be needed due to the COVID-19 situation.  For example, where there is significant uncertainty about whether the charity will be able to continue, it may not be possible for the accounts to be prepared on a ‘going concern’ basis.  Instead, the accounts may have to be prepared on the basis that the charity will be winding up.  This may affect the valuation and treatment of some of the assets and liabilities the charity has.    The accounts should explain the basis used to prepare them – usually in the accounting policies notes for accrued accounts.  For receipts and payments accounts , the impact would potentially be on the statement of balances where assets and liabilities are detailed and the values of these explained.  The Trustees’ Annual Report may also explain any change to the basis on which the accounts have been prepared.    So to summarise, when reading charity annual reports and accounts: be aware of the challenges that the charity has experienced do not expect the finances to look similar to the previous year make sure to read the Trustees’ Annual Report to understand what has happened. The impact of the pandemic on the finances and operations of many charities will not be confined to just one year and will be seen in annual reports and accounts for some time.  Good narrative explanations from charity trustees are key to helping readers understand the impact on the charity both now and in the future. https://www.oscr.org.uk/blog/2020/may/15/charity-annual-reports-and-accounts-reading-them-through-the-right-lens/ https://www.oscr.org.uk/blog/2020/may/15/charity-annual-reports-and-accounts-reading-them-through-the-right-lens/ Fri, 15 May 2020 13:27:28 https://www.oscr.org.uk/blog/2020/april/22/giving-funds-a-great-way-to-support-the-covid-19-response/ Charities are very often at the heart of community responses during a time of crisis.  One of the difficult things about the current situation is that just when charities could be playing a vital role, many of their traditional fundraising activities have had to stop or have been curtailed.  Many are already struggling financially and having to make difficult decisions about what they can and can’t do.  A key way of supporting the response at this time is by giving money (where you have some spare). But what should you be considering when you think about where and how to give money? It is important to try to make sure that you are contributing to a legitimate organisation.  Perhaps you know the organisation you want to support?  You may have been involved with them or benefited from them in the past.  That can be a good basis on which to give.  However, often you won’t have a level of personal knowledge and where you don’t, a good way is to give to a registered charity.  You can check that they are charity by looking at the Scottish Charity Register .  It is important to note, however, that not all organisations doing good work will be charities.  You will need to think about other ways of checking on those, perhaps through talking to others who have been involved with them. When a crisis strikes, it can be confusing.  There may be lots of organisations seeking your support.  You might find it hard to choose.  Sometimes a good way of giving in a disaster situation is through a central coordinated mechanism that aims to distribute the money across the country, where the need is greatest.  The National Emergencies Trust has set up a Coronavirus Appeal which is raising funds for charities and grassroots organisations across the UK.  In Scotland, Foundation Scotland will manage the distribution of the money to charities and other organisations that are working to support those affected by the virus. But what do you do if you are a bit worried about any fundraising that is going on?  If you feel uncomfortable about the way a charity is carrying out its fundraising you should, in the first instance, directly contact the charity.  Charities have primary responsibilty for dealing with fundraising complaints.  It’s important for them to get your feedback, so they can understand any problems, address your concerns and improve their fundraising practice.  All charities should have a two tier complaint-handing process in place.  If your complaint is not resolved, then the final stage will be handled by the Scottish Fundraising Standards Panel .   This is the body in Scotland which has been set up to oversee the system of fundraising regulation in Scotland.  The Panel will look at your complaint, using the Code of Fundraising Practice as a benchmark.  If you are interested in the standards of fundraising that organisations should be working to, then the Code of Fundraising Practice is a good place to start  If your complaint is about a UK wide charity, the organisation to deal with any complaints in their final stage will be the Fundraising Regulator . We know from our experience that the majority of charities out there will be trying their hardest, in very difficult situations, to support communities in need.  Part of getting stronger as a charity sector is making sure we are all constantly working to improve standards.  Spotting and dealing with situations where charities are getting it wrong is an important step in this process. https://www.oscr.org.uk/blog/2020/april/22/giving-funds-a-great-way-to-support-the-covid-19-response/ https://www.oscr.org.uk/blog/2020/april/22/giving-funds-a-great-way-to-support-the-covid-19-response/ Wed, 22 April 2020 11:43:22 https://www.oscr.org.uk/blog/2020/march/11/serious-and-organised-crime-taskforce-resource/ Serious and organised crime is when a group of individuals come together to plan, coordinate and conduct serious crime for their benefit, generally financial. This type of crime costs the Scottish economy alone (excluding the social costs) at least £2 billion annually. Those trying to implement these strategies will use whichever vehicles that are most convenient. These can include charities. In 2018, the Serious Organised Crime Taskforce in Scotland published a resource for the charities and the wider third sector to help them understand the risks and to help them protect themselves from cyber threats, insider threats etc. It is not intended to replace an organisation’s risk management processes, but to give extra support to organisation as they think through any potential Serious and Organised Crime risks. The Taskforce is now looking to refresh the resource. In order to make sure it is as useful as possible, it is looking for input from interested organisations. The taskforce wants to understand whether the resource is helpful, and if there is appetite within the third sector for it to be made available more widely in its current format, or with a different format and structure. So is would be great if you could have a look at the resource and consider the following questions. You can find it here . • Is the structure and layout of the document helpful. • Should there be more background information provided on the sector and its value to Scotland’s economy and social wellbeing. • Are there sufficient case studies and do they provide worthwhile explanation. • Are the various sections of Chapter 4 appropriate for the sector. • Are there any obvious exclusions from Chapter 4 • Is the flowchart helpful. Should it be removed. Can it be improved. • What format would be preferable for your organisation’s purposes eg downloadable pdf, html doc Any other comments would be welcome. Any comments should be sent to me by the end of March 2020 at the following address jim.hislop@gov.scot . Please also indicate whether you would be happy to offer any further comment on a revised version prior to it being published. Jim Hislop, (on behalf of the Serious and Organised Crime Taskforce) https://www.oscr.org.uk/blog/2020/march/11/serious-and-organised-crime-taskforce-resource/ https://www.oscr.org.uk/blog/2020/march/11/serious-and-organised-crime-taskforce-resource/ Wed, 11 March 2020 08:01:57 https://www.oscr.org.uk/blog/2020/january/31/what-will-be-discussed-in-the-strengthening-scotland-s-charity-sector-event-at-the-gathering-2020/ #strengtheningcharities Many organisations across the charity and wider third sector are gearing up for Scotland’s largest voluntary sector event ‘ The Gathering 2020 ’ organised by SCVO.  This year Scottish Government, OSCR and SCVO are holding a joint event to consider how each can strengthen charities in Scotland beyond the realms of charity law alone.  Moderated by Steven Marwick, Director of Evaluation Support Scotland, the panel discussion with Stephen Gallagher of the Scottish Government, Maureen Mallon of OSCR and Anna Fowlie of SCVO will be followed with the opportunity for audience members to contribute their questions and ideas.   This joint blog outlines what each organisation will bring to the event.    Scottish Government  Stephen Gallagher, Director of Local Government and Communities at the Scottish Government, will provide an update following the Scottish Charity Law Consultation. He will also take this opportunity to start a broader conversation, on behalf of the Scottish Government, with the public and the sector about how things like reputation, understanding, transparency and accountability impact on public trust and the sustainability of the charity sector in Scotland; and what the Scottish Government can contribute to this agenda.    OSCR  Our Chief Executive, Maureen Mallon, will be outlining how OSCR wants to work with others to help address some of the challenges facing charities. She’ll explain their priorities for the future, new approaches to their work, and how OSCR will engage with partners to strengthen charity law and support trustees.    SCVO  SCVO's Chief Executive, Anna Fowlie, will refer to their “What is a modern charity?” work and consider why trust and brand matter, to the public and SCVO. She’ll explain SCVO's role in promoting the value of the sector and the contribution it makes to Scottish society; what can, and will they do to contribute to trust-building in the 2020s and throughout uncertainty and rapid change.    Event details Date:  Wednesday 19 February Time:  10.00am to 11.00am Room:  Boisdale Suite 2 https://www.oscr.org.uk/blog/2020/january/31/what-will-be-discussed-in-the-strengthening-scotland-s-charity-sector-event-at-the-gathering-2020/ https://www.oscr.org.uk/blog/2020/january/31/what-will-be-discussed-in-the-strengthening-scotland-s-charity-sector-event-at-the-gathering-2020/ Fri, 31 January 2020 09:38:23 https://www.oscr.org.uk/blog/2019/december/04/acosvos-leadership-jobs-board/ Attract the Highest Calibre third sector leaders to your job vacancy with ACOSVO's Leadership Jobs Board. Launched on September 2nd 2019 the Association of Chief Officers of Scottish Voluntary Organisations (ACOSVO) has a new service to help you attract the highest calibre third sector leaders to job vacancies within your organisation. This service advertises your senior leadership and governance roles by utilising ACOSVO's expansive network of third sector leaders and partners to reach the market. ACOSVO's Member Services Manager, Phili Wetton explains: "ACOSVO Leadership Jobs promotes on our website current third sector Chief Officer and senior leadership vacancies, both permanent and interim posts, as well as trustee vacancies. We are so excited about this new venture showcasing Scottish third sector leadership and governance opportunities to ACOSVO members, chair network participants, other third sector leaders, trustees and any others cross sector who may visit our site. It's a fantastic opportunity to highlight the high calibre of senior leaders across the third sector, and it raises the profile of many different organisations and their important contribution in delivering improved public services for communities throughout Scotland. The Leadership Jobs Board is primarily for two audiences: individuals looking for new leadership and governance roles and organisations wanting to advertise these opportunities. Our three month introductory phase has been overwhelming, with just short of 40 vacancies posted on the site and great feedback from those utilising the service. From 1st December, we will be offering a 50% discount to organisations wanting to advertise vacancies (ACOSVO members, chair network participants and strategic partners receiving reduced rates). Governance roles will be free to advertise for all organisations and there will be no additional charge if a position is unfilled and needs re-advertising. So bearing all that in mind, there is really no reason not to give it a go!" If you want any further information about the service including how to submit your leadership vacancy, please visit the ACOSVO website or contact Phili at services@acosvo.org.uk or 0131 510 8940. https://www.oscr.org.uk/blog/2019/december/04/acosvos-leadership-jobs-board/ https://www.oscr.org.uk/blog/2019/december/04/acosvos-leadership-jobs-board/ Wed, 04 December 2019 07:50:05 https://www.oscr.org.uk/blog/2019/november/21/why-is-the-charity-regulator-talking-about-freedom-of-information/ Why is the Charity Regulator talking about freedom of information? Freedom of information (FOI) has been around in Scotland since 2002. It’s an important tool for holding public bodies (like OSCR) to account. It can also be a key resource of information for the charity sector, see the Scottish Information Commissioner’s Resources for the Voluntary Sector to find out more.   But why is OSCR talking about it? There’s a Scottish Government consultation that runs until 3 December 2019 about extending the coverage of FOI to organisations providing services on behalf of a Scottish public authority. This could include many charities that contract with public bodies to provide services.  The purpose of the consultation is to help Scottish Government identify who might be caught by the extension and understand how it could impact those organisations. Scottish Government will use the responses to the consultation to help inform what changes should be made to FOI. We want to make sure that charities who might be impacted know about the consultation and have a chance to respond to Scottish Government. This consultation is the start of the engagement with the charity sector. If you think it could impact your charity, we would encourage you to respond or feed into a response by one of the sector representatives like SCVO or your local Third Sector Interface . https://www.oscr.org.uk/blog/2019/november/21/why-is-the-charity-regulator-talking-about-freedom-of-information/ https://www.oscr.org.uk/blog/2019/november/21/why-is-the-charity-regulator-talking-about-freedom-of-information/ Thu, 21 November 2019 08:55:55 https://www.oscr.org.uk/blog/2019/june/21/making-progress-on-notifiable-events/ We have now been regulating the Scottish charities sector for over 13 years.  Over that time, we’ve learnt that most charities do far more to build public trust and confidence in the charity sector than to undermine it.  An important part of our role is being preventative; looking to stop problems from happening, or minimising their impact where they do.  This has led us to develop a more focused approach to regulation, targeting our resources at the types of charities who are more likely to pose a risk to public trust and confidence.  As part of this approach, we started our notifiable events regime in April 2016.  The aim of the regime is to make sure that trustees are acting in the best interests of their charity and dealing with potentially serious issues as quickly and effectively as possible. In summary, when a notifiable event happens in a charity, we ask them to contact us to let us know about what has happened and tell us about any action the charity will take in light of the event.  A notifiable event could be: fraud and theft significant financial loss incidents of abuse or mistreatment of vulnerable beneficiaries a lack of charity trustees required to make a legal decision when a charity has been subject to a criminal investigation or an investigation by another regulator or agency; sanctions have been imposed, or concerns raised by another regulator or agency when significant sums of money or other property have been donated to the charity from an unknown or unverified source suspicions that the charity and/or its assets are being used to fund criminal activity (including terrorism) charity trustees acting improperly or whilst disqualified. We do not want to know about every event, only those that threaten to have a significant impact on the charity or its assets.  Reporting these significant events to OSCR is a positive step and charities should not be nervous about contacting us.  It gives us reassurance about the governance of the charity and allows us to identify the correct sources of guidance and support.  By working with us when these events occur, ultimately charities are contributing to improved trust and confidence in their work and the sector.  Reporting a notifiable event is not in charity law.  We started the regime because we know that the public and funders expect charities to take appropriate action when problems occur and this is an opportunity to do so.  So, although there is no legal requirement, the reputational damage can be very high when charities do not engage with it. Our website has clear guidance on notifiable events .  It sets out what to do when something happens and what to expect from us.  Getting in touch is as straightforward as sending us an email, and a member of our staff will respond quickly with any next steps. Since the regime started, we have had 320 notifiable event reports from Scottish charities.  Of these, 24% have involved issues of financial loss and 22% Fraud and Theft.  In the vast majority of notifiable event cases, trustees have taken the appropriate steps and further action by OSCR has not been required.  However, in 27 cases overall (8%), the cases were referred to our Compliance and Investigation team, and dealt with under our Inquiry Policy .  In 19 of these cases, the team undertook further inquiries (6%).  We are very pleased with the way in which charities are responding to the regime and reporting to us.  So if you are a charity trustee, and there is something tricky happening in your charity, please contact us.  Reporting to us will be seen as a positive act and a sign of good governance practices within your charity. https://www.oscr.org.uk/blog/2019/june/21/making-progress-on-notifiable-events/ https://www.oscr.org.uk/blog/2019/june/21/making-progress-on-notifiable-events/ Fri, 21 June 2019 13:43:51 https://www.oscr.org.uk/blog/2019/may/30/dissolution-clauses/ Many charity trustees understandably don’t often refer to the dissolution clause in their charity’s constitution, because the dissolution of their charity is an event they hope doesn’t happen. However, it’s inevitable that some charities will ultimately have to apply to OSCR for consent to wind up or dissolve and it’s important that charities understand what their dissolution clause means.    Most constitutions contain a dissolution clause that describes how the charity is to distribute any assets or property that remains after any outstanding debts and liabilities are met. There are instances however where a charity’s constitution does not contain a dissolution clause and there are no other powers at their disposal allowing them to wind up the charity. In such cases, the charity may consider whether they have the power to amend their constitution to include a dissolution clause.   In 2018, OSCR received 441 applications from charities for consent to wind up. The most common reason why OSCR was not able to grant consent was where the charity proposed to distribute its remaining assets in a way that their dissolution clause did not permit. . OSCR cannot give consent to an action that the charity’s own rules do not allow it to do.   Many constitutions have a dissolution clause that requires any remaining assets of the charity to be transferred to another charity with similar purposes. This means that as well as the recipient having to be a registered charity, the purposes (as set out in the constitution) of the proposed recipient must be similar to the purposes set out in the constitution of the charity winding up. Some charities may have reasons why they would like to give some or all of their assets to a charity that does not have similar purposes. - Perhaps they have shared premises with the recipient charity or have worked closely alongside the other charity. Regardless of the reasons, if the dissolution clause states that assets must go to a charity with similar purposes, then that what the charity trustees must do. There is no requirement in charity law for a charity’s dissolution clause to provide that any remaining assets are transferred to another charity with similar purposes. Sometimes dissolution clauses are much less specific- for example it might simply be the case that assets have to be transferred to another charity (regardless of its purposes) or in some cases a dissolution clause might only require that assets have to be distributed for charitable purposes. No matter what your dissolution clause says, charity trustees should make sure that: it does not permit assets to be used for anything other than a charitable purpose it accurately reflects and details how the charity trustees would like any remaining assets to be distributed if the charity is wound up any application for consent to wind up, the proposed distribution of remaining assets must be in line with the charity’s dissolution clause. Providing the charity has the power to make amendments to its constitution, charity trustees will be able to amend their charity’s dissolution clause if need be. Charities that are SCIO’s however will be limited in terms of how they might amend their dissolution clause, as charity law provides that SCIO’s `are to distribute any remaining assets for purposes which are the same as or which resemble closely the purposes of the SCIO. https://www.oscr.org.uk/blog/2019/may/30/dissolution-clauses/ https://www.oscr.org.uk/blog/2019/may/30/dissolution-clauses/ Thu, 30 May 2019 07:50:30 https://www.oscr.org.uk/blog/2019/april/03/risk-assessment-and-improving-our-work/ If you have been following our progress over the past few years, you may remember that some time ago we consulted on a range of proposals designed to help us become more risk-based in our work – we called this Targeted Regulation   Since then, we have focused on two main areas: identifying the key risks we need to concentrate on using the resources at our disposal to deal in the most sensible way with charities and issues most likely to undermine public trust and confidence in the charity sector. Like every regulator, it is not possible to look at every issue or every member of a regulated constituency at all times, so we have to make choices about what to focus on.  We have a published risk framework that outlines the issues that we think have the greatest potential to undermine public trust and confidence.  Since we developed this, we have been working on how we can shape our activities to ensure that they align to this framework.  We are now at a critical stage of developing a method of risk assessment that we can use across a range of the incoming items we receive.  These items include any concerns raised about charities, notifiable events, applications for charitable status and consent, and a wide range of other queries and questions.  We want to deliver a consistent approach when we risk assess and make sure that we are applying our resources in the right way at the right time. In April, we will start a pilot exercise that will test the improved risk assessment process.  This pilot will focus on risk assessing the input that we receive and finding ways of considering, at an earlier stage, what else we know about that charity to form a holistic picture.  We want to make sure that we identify as many issues as possible relating to the risks on our framework at an early stage so that we can work more effectively and efficiently.  Equally, this process may sometimes involve making choices about doing less in certain situations – and we are no different to any other public body in this way.  We think this is the right and responsible approach to take as a regulator, taking a clearly focussed approach to deal with the greatest risks and issues and tackling those head-on through reactive and proactive work.  Ultimately, the aim of this work is to improve public trust and confidence in the sector and to support the sector better. https://www.oscr.org.uk/blog/2019/april/03/risk-assessment-and-improving-our-work/ https://www.oscr.org.uk/blog/2019/april/03/risk-assessment-and-improving-our-work/ Wed, 03 April 2019 09:44:32 https://www.oscr.org.uk/blog/2019/march/12/5-excuses-for-not-having-young-trustees/ by Cordelia Sampson, Chair of Trustees at Edinburgh Students' Charities Appeal We are an incredible and diverse sector. We do amazing things. We save lives, we create opportunities, and we develop leaders, but we CAN be better. We have a wide variety of purposes and incomes ranging from a few thousand pounds to tens of millions. But, with a couple of things in common, we ALL have trustees and we can all be better. Perhaps many of us can be better in one way in particular. Research shows that many charities have something else in common - they don't have any young trustees which, for the purposes of this blog, means under 27. I became Chair of Trustees at Edinburgh Students' Charities Appeal (known as ESCA) almost 3 years ago, aged 24. Since then, I have attended a lot of events for trustees and it's impossible not to notice the absence of other young people. The way I have been treated and spoken to at these events only reinforced my feeling that young people aren't seen as potential trustees. Even when attending an event SPECIFICALLY for chairs of trustees, most people assumed I was a member of staff. The average age of trustees in the UK increased from 57 in 2010 ( 1)  to 61 in 2017 ( 2)  and the number of trustees over 60 increased from 42% in 2005 ( 3)  to 67% in 2012 (4). The need to increase the number of young trustees was raised in 2001 by NCVO (5). Since then it has been regularly advocated for by some of the most prominent organisations in the charity sector, and everyone I've spoken to about the issue has agreed that it needs to change. But nothing has. So I started thinking about WHY nothing has changed. If you are aware of the benefits of young trustees and understand why it's important to involve them, what's stopping you? What excuses are you using for not having young trustees? Are any of them valid? I don't believe so. And I hope that by going through some of these excuses, using research as well as my own journey, you will realise that actually, there is no excuse for not involving young people at board level. And given that 2018 was the year of Young People in Scotland, it seems like the perfect opportunity to initiate genuine action for change.   1. The first and most obvious excuse. Young people don't have enough skills, knowledge or experience. They DO, it's just not the same as that of existing board members. But that's a good thing. Let me tell you a little about my journey at ESCA. I became chair somewhat unexpectedly - our previous chair stepped down with very little notice and I was appointed interim chair, despite being the youngest trustee. However about a week later, our then only member of staff handed her notice in, as she moved on to the next stage in her career. This meant I had to lead recruitment, induction and line management of new staff having never had a job myself. When I emailed the board informing them of the resignation, I got replies from less than half of the board. Safe to say I felt a little out of my depth. But, I knew the organisation and I knew what I thought needed to change. So I did a lot of googling about staff management, charity governance and accounts and got stuck in. Since I became chair, we have increased the number of young people on our board, employed an additional member of staff, increased the annual amount raised for charity, increased the size of our student committee, produced our first organisation risk register, written our first set of volunteer policies and restructured our annual report. It has been a steep learning curve, but one that I and our other young trustees have relished, partly because of our acute awareness that we don't know all the answers. And that's the thing about young trustees, they will ask questions other people won't even though others are often sitting there thinking the same thing but feeling unable to ask because of their 20 plus years of experience. By asking these questions, they will certainly improve the understanding of the whole board, and will challenge long-standing beliefs - this leads to innovation and change, which can only be a good thing.   2. Young people aren't interested My personal favourite - as president of ESCA's student committee, I spent over 20 hours a week volunteering whilst in the final year of my degree. I wasn't a trustee. but I did attend the 'student part' of trustee meetings. The trustees constantly said, we've got to do the boring stuff now when referring to the trustee business, it was always framed as though it was of no interest to the volunteers. I'm not sure where this reasoning comes from, most of your organisations probably have young volunteers, If they're volunteering, they ARE interested in your charity and if they're interested in your charity, the chances are. they might be interested in having a say at board level. But they probably don't even know it's an option. I've heard people say things like, "young people would find board meetings boring". Again, I don't know where this comes from. Do you find board meetings boring? If not, why do you assume young people will? Over 90% of trustees find the role personally rewarding and regard it as important or very important to them (2). If young people are given a chance, they will find this too. For a large proportion of charities, young people are the beneficiaries - how can they claim they're not interested? The Scottish Seabird Centre recently tried to recruit a young trustee and they had so many quality applications they ended up appointing two (2). Research by Young Charity Trustees found that, once they understood the role, 85% of young people interviewed would consider becoming a trustee (7).   3. We can’t find any My first challenge to this is…where are you looking? 71% of trustees say they were recruited through being asked directly by an existing trustee ( 2)  and over 90% of charities recruit most of their board through word of mouth and existing networks (8 ) .  So, it’s not particularly surprising that they can’t find young trustees. If you are only speaking to people like you, then you will only find people like you. But this practice is worrying. Whether or not your organisation has staff, trustees are quite probably THE most important and influential individuals in a charity. And yet, much more time and effort is put in to recruiting (even junior) staff. I doubt many (if any) of you would even think about appointing a member of staff without at least seeing their CV and holding an interview. And I suspect most wouldn’t consider not advertising a role. The next excuse is probably that you don’t know where to advertise. Luckily, the International Voluntary Service has a new project, the Year of the Young Trustee. You can sign their pledge to recruit one young trustee in the next twelve months. They will advertise your vacancy and send it out to their database of young people who want to be trustees.   4. It will take too much time and energy to support them I’ve read a lot of advice on how to support young trustees and one thing seems pretty obvious to me.The things you should or need to do to support young trustees, are things you should be doing to support ALL trustees anyway. Provide them with a proper induction. At least 30% of charities offer NO induction (8 ) . I don’t know why because I don’t think anyone would expect a new member of staff to just get started without an induction. Regardless of how much experience someone has, whether as a trustee or in business, they haven’t been a trustee at YOUR organisation. Businesses are different to charities, and every charity is unique, so if you want your trustees to add anything, then you need to give them the necessary information and guidance. Ensure they understand the meeting papers – this should happen routinely, but there is too often an assumption that everyone understands everything. Reviewing whether board papers are clear and easy to interpret will almost certainly improve all trustees contributions. Conduct a skills audit and organise training for trustees – SCVO found that only 65% of participants felt confident in their skills as a trustee (9 ) . The House of Lords recently published a report which stated that induction and ongoing development is “essential for charity trustees in order for the sector to work effectively” because “trustees need to feel confident and well-informed in order to provide strategic direction, oversight and challenge” ( 10) . I completely understand that charities have limited capacity, but, investing in the development of trustees of all ages will benefit the entire organisation, ensure trustees remain engaged and feel they are able to contribute for longer.   5. Young people don’t have time I think this is mostly about the fact that young people might have jobs, so don’t have as much free time as a typical retired trustee. But, unless your entire board is retired (and even then), every single board member will have some other commitments which have to be worked around. It’s no different with young people, and in fact, some companies will allow people to take paid time out of work to fulfil a trustee role. Equally, contrary to popular belief, young people don’t devote all their free time to frivolous pursuits. For many, the volunteering they do, is an integral and important part of their free time. And there are statistics to reflect this, in the 2017 Scotland Giving Survey ( 11)  94% of 16 to 24 year olds had engaged in charitable activity in the last year, the same percentage as those over 65 and more than people aged 45 to 64. And 16 to 24 year olds were the MOST likely to have volunteered out of all age groups.   Young people can do it, we want to do it, we have the time and skills to do it and WE ARE READY. So, my final message is not combative or critical. It’s not a call to action or a demand. It’s a simple fact. We have an opportunity. WE CAN BE BETTER. We can reject the excuses of the past and build diverse boards that truly represent our society, or we can continue down a path towards irrelevance. We can build boards based on a mix of skills and perspectives, or we can perpetuate the myth that says the only measure of experience is how many decades you’ve lived. We can be better. We can sign up to the IVS year of the young trustee and remind ourselves that good leaders don’t create followers, they create more leaders. Then we can be better. When age, and gender, and race, and faith, and disability are no longer barriers to participation in our boards, we can and we will be better.   Charity Commission, A Breath of Fresh Air, 2010 LINK Charity Commission, Taken on Trust, 2017 LINK Charity Commission, Start as you mean to go on: Trustee recruitment & induction, 2005 LINK Charity Commission, Statistics, 2012 https://www.bbc.co.uk/news/business-20096437 NCVO & Akpeki T, Involving Young People (Guide to Board Development), 2001 LINK http://thirdforcenews.org.uk/tfn-news/leading-conservation-charity-recruits-young-trustees Young Charity Trustees, Young, Gifted &…a Charity Trustee?, 2013 LINK Getting on Board, The looming crisis in trustee recruitment, 2017 LINK SCVO, Trustees Matter, 2017 LINK Select Committee on Charities, Stronger charities for a stronger society, 2017 (P.27) LINK CAF, Scotland Giving Survey, 2017 LINK https://www.oscr.org.uk/blog/2019/march/12/5-excuses-for-not-having-young-trustees/ https://www.oscr.org.uk/blog/2019/march/12/5-excuses-for-not-having-young-trustees/ Tue, 12 March 2019 09:04:10 https://www.oscr.org.uk/blog/2018/december/17/community-asset-register-car/ Late last year, SFRS (Scottish Fire and Rescue Service) launched a Community Asset register (CAR) across all three of Scotland's regional resilience Partnership areas in the North east and West of the country. This constitutes a huge step forward to improve joined up emergency response arrangements involving the third sector, private sector and statutory responders.  Details of Voluntary Sector (VS) organisations, businesses and individuals as well as their skills and assets, which could assist the 'response to' or 'recovery from' an emergency event, can now be held centrally (electronically) on the CAR assuming basic standards can be met and maintained. The sort of specialist skills, vehicles, equipment and accommodation that can now be centrally captured and listed, for use in emergencies, are such as the following: Assets  (certified & safety inspected) vehicles to cross water vehicles for rough and rural terrain boats for flood events marquees, generators, outdoor lighting Volunteers  (experienced and qualified to operate their equipment) Mountaineers 4x4 groups White water rafters people with access to buildings/community halls;  as a base for emergency personnel for warmth and shelter for volunteers for displaced members of the community This significant development allows assets to be quickly identified and deployed to assist multi or single agency incident response and recovery in an appropriate and co-ordinated way. It offers a great opportunity for Scotland to build on existing good resilience arrangements and, as improvements are made going forward, will be an increasingly important resource. It was successfully trialled during the 'Beast from the East' severe weather event in February and March 2018 and allowed needs to be prioritised and assets to be deployed in the best possible way. Now that the CAR is up and running, the SFRS and its partners, such as the Police, Ambulance Service, NHS and Local Authorities - who may also need to use the assets in emergency events - are keen to highlight the opportunity the system offers to improve support to resilience arrangements in Scotland at a national, regional and local level. Bruce Farquharson, the SFRS Area Manager who led the project said: "The Community Asset register is yet another example of collaborative working that benefits everyone. The Scottish Fire and Rescue Service exists to save lives and emergency responders will always respond to every emergency with the right resources, in the right place, at the right time. But we are always looking for new and innovative ways to improve arrangements to better keep our communities safe. If we can combine public sector resources with private and third sector assets and expertise and tap into the community spirit that never fails to emerge during emergency events, we can really make a difference. We are calling upon those with specialist skills, vehicles and equipment to work alongside emergency responders, when needed, to help emergency response and recovery and to keep people safe. There are very experienced and knowledgeable individuals who proved more than adept at handling their equipment, such as white water rafters, mountaineers and 4x4 enthusiasts and countless businesses who have assets and equipment to offer for particular emergencies. There are also people, groups and businesses who can offer access to usable buildings - these can be hugely helpful to cater for displaced people in need of temporary warmth and shelter or as a temporary base for emergency personnel. These everyday volunteers, with a very keen community spirit, who wish to help their communities and we commend their selfless contributions. We are now seeking to follow their example and sign up to this potentially lifesaving register. I would encourage individuals, Volunteer and other organisations to sign up to the CAR by emailing  SFRS.CommunityAssetRegister@firescotland.gov.uk  " https://www.oscr.org.uk/blog/2018/december/17/community-asset-register-car/ https://www.oscr.org.uk/blog/2018/december/17/community-asset-register-car/ Mon, 17 December 2018 11:42:22 https://www.oscr.org.uk/blog/2018/december/06/cyber-essentials-5-basic-questions/ Why should I get Cyber Essentials? Getting  Cyber Essentials  means you have put in place 5 key technical controls which help protect your organisation against cyber attacks. Having these controls in place will significantly improve your cyber resilience. Going through the  Cyber Essentials accreditation process  will help you systematically review the security of your systems and take action to make them more secure. Finally, having Cyber Essentials accreditation means you can demonstrate to your service users and supporters that you take IT security seriously. Will it guarantee my IT systems are secure? No system offers perfect protection against the most sophisticated cyber attacks. But the vast majority of cyber attacks are not sophisticated, they are relatively basic attacks looking for obvious weaknesses. Cyber Essentials is the equivalent of making sure your front door is locked - it means you have taken the most important steps to protect against the most common kind of attacks. For charities of all sizes, Cyber Essentials is an important first step to improving your cyber security.  Cyber Essentials covers technical controls and systems. Staff awareness and training is another key part of being cyber resilient, and this is something you’ll need to tackle separately. What is the difference between Cyber Essentials and Cyber Essentials Plus? Cyber Essentials and Cyber Essentials Plus both involve the same main steps: Finding a suitable IT partner to work with Reviewing whether your systems meet the technical requirements Completing the Cyber Essentials questionnaire The difference is that Cyber Essentials Plus involves more rigorous testing and independent verification by an approved accreditation body. This means that Cyber Essentials Plus is more expensive to achieve. Because of this, we are supporting smaller charities (annual income less than £4m) to achieve Cyber Essentials. We expect that a grant of £1,000 should cover most or all of the costs involved. We are encouraging larger charities to aim for Cyber Essentials Plus accreditation, but we recognise that these organisations will need to find other resources to meet all the costs of achieving the more rigorous standard. Which organisations are eligible for cyber grants? Any third sector organisation in Scotland can apply for a cyber grant. This covers registered charities and mutual not-for-profit companies delivering public benefit, such as housing associations and credit unions. For private sector organisations in Scotland,  Scottish Enterprise is running a Cyber Vouchers scheme . Third Sector organisations with annual incomes below £4m per year can apply for a grant to obtain Cyber Essentials, and larger organisations with incomes greater than £4m per year are eligible to apply for a grant towards some of the costs of obtaining Cyber Essentials Plus. How do I apply? You can apply online  here . The application form is simple, it asks a few basic questions: About your organisation How you will benefit from obtaining Cyber Essentials What your current level of cyber resilience is and How you plan to go through the accreditation process The deadline for this cyber grants call is 18 December. Depending on demand and the resources we have available, we may run another round at some point in 2019. https://www.oscr.org.uk/blog/2018/december/06/cyber-essentials-5-basic-questions/ https://www.oscr.org.uk/blog/2018/december/06/cyber-essentials-5-basic-questions/ Thu, 06 December 2018 08:58:24 https://www.oscr.org.uk/blog/2018/november/28/vlog-introduction-to-charity-investments-guidance/ On 12 November 2018 OSCR published 'Charity Investments: Guidance and Good Practice’.  It aims to help and support trustees of charities that have investments or are considering investing some of the charity’s funds. Read the guidance here . It was developed with the assistance of Julie Hutchison of Aberdeen Standard Investments and finalised following a public consultation over the summer.  Julie speaks about the guidance in the video below: https://www.oscr.org.uk/blog/2018/november/28/vlog-introduction-to-charity-investments-guidance/ https://www.oscr.org.uk/blog/2018/november/28/vlog-introduction-to-charity-investments-guidance/ Wed, 28 November 2018 08:54:53 https://www.oscr.org.uk/blog/2018/november/16/financial-governance-tips-for-trustees/ In the final blog in our series celebrating Trustees Week, Jenny Simpson, Head of Charity Services at Wylie & Bisset, looks at the information Trustees need to demonstrate sound financial governance of their charity. Managing a charity’s finances is clearly a key responsibility for Trustees. Management information provided to Trustees, which might include management accounts, budgets and cash flow forecasts, should be appropriate to the charity’s size and the complexity of its funding structure. There is no one-size-fits-all answer. Where a charity receives restricted income, that is, income where the funder specifies how the money should be spent, it is important that the income is identified as such as soon as it is received and that the accounting records show clearly how that money has been spent. The charity’s management information should include details of restricted income and expenditure so that Trustees can monitor spending of these funds. Many charities do not track restricted funds during the year, undertaking this only as a year end exercise when preparing the charity’s statutory year end accounts. This is unlikely to be sufficient to demonstrate good financial governance and can lead to unwelcome surprises such as unspent restricted funds which have to be returned to the funder, or big reductions in the charity’s free reserves due to overspends from unrestricted funds. Unless the charity is very small, management accounts should include a balance sheet showing the assets and liabilities of the charity. Income and expenditure accounts are of limited value unless supported by a (balanced) balance sheet and a review of the balance sheet is useful in identifying potential solvency issues before they become a serious problem. Similarly, budgets should be supported by cash flow projections which will allow Trustees to spot any potential issues with cash flow well in advance so that they can take appropriate action to ensure the charity remains solvent. In approving the charity’s statutory accounts, Trustees are required to consider whether the charity will remain a going concern for a period of at least twelve months from the date of approving the accounts. Where there are any uncertainties, Trustees should make mention of this in the Trustees Annual Report as well as the accounting policies in the notes to the accounts. It is difficult for Trustees to demonstrate that they have complied with this requirement unless they have budgets and cash flow forecasts covering the relevant period. Charity accounting can be complex, but Trustees must ensure that the charity has the systems, processes and resources to ensure that the financial information they receive is accurate, fit for purpose and sufficient to allow them to discharge their responsibilities properly. https://www.oscr.org.uk/blog/2018/november/16/financial-governance-tips-for-trustees/ https://www.oscr.org.uk/blog/2018/november/16/financial-governance-tips-for-trustees/ Fri, 16 November 2018 12:10:08 https://www.oscr.org.uk/blog/2018/november/15/appointing-trustees/ In the fourth of our blogs celebrating Trustees Week, Head of Charity Services, Jenny Simpson, looks at the governance processes charities should consider when appointing new Trustees. We all know that Trustees are invaluable to the running of your charity. But how do you ensure the right person for your board and what governance processes do charities need to consider? Before choosing new Trustees the Board should undertake a skills audit to identify any gaps in the collective knowledge and skills of the current trustees, which can be addressed via the recruitment process. This will inform the process and how the new Trustees are identified. Having gone to the effort of finding the right person there are further steps to ensure good governance, which are sometimes overlooked.  OSCR’s   Guidance and Good Practice for Charity Trustees   makes it clear that, while an individual is guilty of a criminal offence if they accept appointment as a charity trustee if they are disqualified from doing so, there is also a collective responsibility on all charity Trustees to make sure that none of them are disqualified. I recommend that charities have robust procedures when appointing a new Trustee to ensure that this important aspect of good governance is complied with. This also means that new charity Trustees understand the charity, their role and responsibilities, and can make a meaningful contribution from the outset.  Such procedures might include: Asking new Trustees to sign a document confirming that they are not disqualified from acting as a charity Trustee; Providing new Trustees with a document setting out their role and responsibilities and the charity’s expectations of Trustees such as attendance levels; Requiring new Trustees to complete a ‘Fit & Proper Person’ declaration Providing new Trustees with an Induction Pack of relevant documents such as the charity’s constitution, the Board’s Policies and procedures, the latest statutory and management accounts, and copies of minutes of recent Board meetings; Inviting new Trustees to visit the charity’s premises, meet the employees and beneficiaries and witness first-hand the charity’s day to day activities. Another problem area we encounter is in relation to communication of appointments to Companies House (for charitable companies only). Under the Companies Act 2006 the appointment of a new director (trustee) must be notified to the Registrar of Companies within 14 days. This timescale is frequently breached because new directors (trustees) fail to provide the personal identifier information required to notify Companies House of their appointment. For charitable companies we recommend that the new Trustee procedures are expanded to include provision of Companies House information before formal appointment. https://www.oscr.org.uk/blog/2018/november/15/appointing-trustees/ https://www.oscr.org.uk/blog/2018/november/15/appointing-trustees/ Thu, 15 November 2018 10:50:24 https://www.oscr.org.uk/blog/2018/november/14/protecting-your-charity-tax-status-in-one-simple-step/ The Finance Act 2010 introduced a new requirement for charities to be run by ‘Fit & Proper Persons’ in order to enjoy status as a charity for tax purposes and so be eligible for the tax reliefs afforded to charities. The requirement is still relatively little known and so, many charities we come across have not taken the simple steps necessary to prove they are run by Fit & Proper Persons which would protect their tax status.  Interestingly there is no definition of a Fit & Proper Person in the legislation, but HMRC assumes that all persons appointed to the general control and management of a charity are fit and proper persons unless they have information to the contrary. ‘Persons having the general control and management of a charity’ is not restricted to just the Trustees but will include management as well. Full details of who is covered can be found in the government’s guidance at:   https://www.gov.uk/government/publications/charities-fit-and-proper-persons-test/guidance-on-the-fit-and-proper-persons-test   Provided charities take appropriate action on appointing personnel then they can assume they are run by fit and proper persons - unless HMRC indicate they have concerns to the contrary. Charities therefore need to make sure they hold a declaration completed by all current relevant persons and anyone appointed in the future. HMRC have provided a model declaration which can be downloaded here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/597664/Fit-and-proper-persons-helpsheet-and-declaration.pdf   If all relevant persons are able to sign the declaration then the charity need take no further action, they can assume they are run by Fit and proper persons. Thankfully there is no need to get the declarations updated on an annual basis. https://www.oscr.org.uk/blog/2018/november/14/protecting-your-charity-tax-status-in-one-simple-step/ https://www.oscr.org.uk/blog/2018/november/14/protecting-your-charity-tax-status-in-one-simple-step/ Wed, 14 November 2018 12:15:06 https://www.oscr.org.uk/blog/2018/november/13/trustee-governance-conflicts-of-interest-and-related-party-transactions/ Section 66 of the Charity & Trustee Investment (Scotland) Act 2005   imposes specific duties on charity Trustees in respect of managing conflicts of interest, and FRS102 and the Charity SORP require disclosure of transactions with related parties. A charity’s governance processes must be robust enough to not only ensure compliance with the Act but also to capture any transactions requiring disclosure.  We commonly find that charities do have a Register of Trustee’s Interests (a record of the personal, business and financial interests of a charity trustee that may potentially lead to a conflict of interest) but often the register is not regularly updated (we would suggest that this needs to be done at least annually) or occasionally we find that most Trustees have returned their declarations but not all.  Relatively few charities have gone the extra step to maintain a list of all related parties. The definition of a related party is quite wide-reaching and charities argue that as a result most Trustees will have a number of related parties, such that when you aggregate all of the Trustees’ information the list of potential related parties will be huge! We sympathise with this viewpoint but it is difficult to argue that all related party transactions would be identified if you don’t have a complete list of related parties to start with.  Identification of related party transactions is ultimately the responsibility of the Trustees as a body, so it is up to them to implement a process whereby they are satisfied that the requirement is being met. One possible solution to this is to ask Trustees to make an annual declaration of transactions the charity has had with, and donations the charity has received from, their related parties. This can also be combined with a declaration of expenses waived (which is also a required disclosure in the accounts).  One final issue we find in this area is that, whilst the Register of Interests may be in place, the charity does not have a policy for dealing with conflicts of interest. We believe that it is much easier to put a policy in place in advance of any situation arising than it is to try and agree a course of action once you’re faced with an issue.  Further guidance on conflicts of interest and how to manage them can be found in OSCR’s Guidance for Charity Trustees:  https://www.oscr.org.uk/media/2728/v10_guidance-and-good-practice-for-charity-trustees.pdf https://www.oscr.org.uk/blog/2018/november/13/trustee-governance-conflicts-of-interest-and-related-party-transactions/ https://www.oscr.org.uk/blog/2018/november/13/trustee-governance-conflicts-of-interest-and-related-party-transactions/ Tue, 13 November 2018 10:29:24 https://www.oscr.org.uk/blog/2018/november/13/the-impact-of-missed-trustee-meetings/ Through our work with our charity clients one recurring issue that we see relates to the levels of attendance by Trustees at meetings. Of greatest concern is where we see that meetings are cancelled at short notice because insufficient Trustees are able attend to achieve a quorum. This can have serious implications for the running of the charity and can tie the hands of the charity’s management who are unable to get Board approval for planned actions and activities. Thankfully cancelling meetings is relatively rare, but far more commonly we see individual Trustees with very poor attendance at meetings. This is not necessarily an issue for the charity but can pose particular risks for the absent Trustee.  Trustees have onerous responsibilities, with potential personal liability in extreme circumstances, and it can be difficult to demonstrate adequate discharge of those responsibilities if you are not present at meetings. There is no ‘not my fault -I wasn’t there’ defence.  We would encourage all Trustees to attend as many meetings as possible, and where attendance is not possible, ensure that you have thoroughly read and considered the papers, in advance of the meeting, and submit comments and questions through the Chair. The input from the absent Trustee should be carefully minuted.  Charities may wish to implement a policy setting out expected attendance levels and a policy for removal of Trustees with unacceptable attendance. They may also wish to monitor attendance levels and report these to the Board on an annual basis. Find out more information on Trustee meetings in OSCR's  Guidance and Good Practice for Charity Trustees. https://www.oscr.org.uk/blog/2018/november/13/the-impact-of-missed-trustee-meetings/ https://www.oscr.org.uk/blog/2018/november/13/the-impact-of-missed-trustee-meetings/ Tue, 13 November 2018 09:32:37 https://www.oscr.org.uk/blog/2018/november/12/new-guidance-launched-on-charity-investments/ Finally it’s here – our brand new  guidance and good practice on charity investments !  Charities of various shapes and sizes invest their money and those investments can take a range of forms – cash placed on deposit, an investment portfolio or an investment that has social and ethical considerations and returns for the charity.  Increasingly the charity sector is making more use of investments and we have developed this guidance to help support charities in this sometimes tricky area of their work. This guidance is written specifically for Scottish charities because the law in relation to charity investments is different in Scotland compared to that in the rest of the UK.  In my experience of working with charities, any matter related to the finances often leads many charity trustees feeling out of their depth and unable to contribute to discussions.  However when making decisions about what to do with the charity’s money it is important that charity trustees are able to understand the choices they have, the possible risks attached to those choices and the implications of the decisions they may take. What does the guidance cover? The new guidance starts off by looking at where the power for charities to invest comes from, which depends on the charity’s legal form.  It is important for charity trustees to be sure that they have a power to invest the charity’s funds before going any further. Next we look at the legal duties of charity trustees and how they apply in relation to investments.  Charity trustees must always meet their legal duties and in the guidance we provide practical examples and good practice tips that can help trustees to achieve this. The guidance then looks at other factors that trustees may wish to consider when making investment decisions.  The decision isn’t always just about how much money the charity could earn– sometimes a charity may wish to align its investment choices to the purpose of the charity itself so that the investment contributes to a non-financial objective such as a social or ethical aim.    Once trustees have decided what they want to achieve from investments and what the critical factors are they can develop an investment policy statement. Our guidance has a step by step guide to help trustees consider the various components they could include in the policy statement. The guidance rounds off by looking at the information about charity investments that must be included in the annual reports and accounts of charities with an income of £500,000 or more based on the requirements of the Charities SORP. The development of the guidance We are very grateful to Julie Hutchison of Standard Life Wealth for her assistance in developing this guidance and the members of our external Reference Group who gave us lots of food for thought during the project!  We hope trustees will find this guidance useful in making good investment decisions that are right for their charity, recognising that needs can change over time and so these decisions need to be reviewed on a regular basis. https://www.oscr.org.uk/blog/2018/november/12/new-guidance-launched-on-charity-investments/ https://www.oscr.org.uk/blog/2018/november/12/new-guidance-launched-on-charity-investments/ Mon, 12 November 2018 09:48:43 https://www.oscr.org.uk/blog/2018/october/19/safeguarding-and-beyond-working-together-to-build-good-practice/ Earlier this year we published our interim safeguarding guidance.  It outlines the responsibility that charity trustees have to make sure their charity has the appropriate safeguarding measure in place to prevent and protect vulnerable beneficiaries from harm and to make sure that they can enjoy their right to feel safe and secure.   But beyond safeguarding, it is also essential that charities are protecting all those who they are working with, whether they be staff, volunteers, beneficiaries, visitors, contractors and so on.  Is the culture of the organisation one in which staff, volunteers and beneficiaries can raise issues and feel confident that they will be dealt with?  Is it a culture where there is zero tolerance for bullying and harassment?  Are HR policies conducive to the creation and maintenance of a positive culture?  Is the employment cycle robust enough to make it difficult for anyone with a hidden, abusive agenda to infiltrate the organisation?  How good is the organisation about being honest about and learning from its mistakes? During the year, we have been working closely with partners in Scotland and beyond to look at the best ways of building good practice in terms of safeguarding and on some of the wider issues touched on above.  We have been delighted at the willingness of the sector to engage in constructive debate and action in this area.  What we have seen over the year is that while there is a great deal of good practice, there are gaps that need to be filled, and practices that need to be improved. We are working closely with Scottish Government, SCVO, the Scottish International Development Alliance and other sector partners to work out the best ways to give overall support to the sector in Scotland. We are also engaging with partners in other parts of the UK.  Charities often stretch beyond geographical borders and so it is essential that we are working closely with the Charity Commission for England and Wales and the Charity Commission for Northern Ireland.  There is also a lot of good work being spearheaded by the Department for International Development (DfID), as it looks at how to build best practice on an international scale. As part of that work, DfID organised a summit aimed at tackling exploitation, abuse and harassment in the ‘aid’ sector.  This was a great opportunity for key organisations to come together to commit to building good practice in different areas.  Aside from a great number of representatives from international development charities, there were also representatives from donors, the United Nations, the private sector, research organisations, UK and international financial institutions.  Each grouping made   key commitments   as to how they were going to tackle sexual exploitation, sexual abuse and sexual harassment in their work within the aid sector. Key to all the commitments is putting those affected by sexual exploitation, sexual abuse and sexual harassment at the centre of the solutions, and some powerful voices of those who had been affected were heard during the day.  Making everyone safe involves developing cultures, systems and procedures that make it as difficult as possible for anyone who might want to exploit difficult, complex and sometimes chaotic humanitarian and development situations to engage in bad or criminal behaviour.  Some of the biggest challenges for the sector are around the employment cycle; how to make sure that recruitment and vetting procedures are robust enough.  This is complicated where people are moving around the globe, and where different jurisdictions will have distinct legal and procedural approaches.  There are concrete commitments to try and work on that, through developing a positive ‘passport’ for those working in development and by trying to develop better information sharing between charities at the point of referencing, allowing appropriate disclosures to be make. It will be interesting to watch the progress of these initiatives over the next period. I left the summit feeling very hopeful.  The commitment I had seen here in Scotland was strongly echoed throughout the day and across all sectors.  Many of the issues we need to deal with are societal and cultural in nature, and therefore very complex.  Only through building strong partnerships and learning from each other will we be able to build on the best practice that is already out there, and to deal with the gaps and difficulties that have led to problems for several charities. At this year's 'Meet the Regulator' event in Edinburgh, Jude conducted a   presentation on Safeguarding and you can watch the video here . OSCR has guidance for charity trustees about   safeguarding available on this website . https://www.oscr.org.uk/blog/2018/october/19/safeguarding-and-beyond-working-together-to-build-good-practice/ https://www.oscr.org.uk/blog/2018/october/19/safeguarding-and-beyond-working-together-to-build-good-practice/ Fri, 19 October 2018 12:54:13 https://www.oscr.org.uk/blog/2018/august/20/asset-transfer-route-map/ Is there a piece of land or building in your community that you think could be better used if owned or managed directly by the community?  If so, the   Community Empowerment (Scotland) Act 2015   (CEA) gives communities of place and of interest the right to request the transfer of publicly owned land or buildings on the basis a management agreement, lease or ownership.  Community groups can state how much they are prepared to pay; justifying any discount requested on the basis of the benefits and value their proposal will bring.  The presumption is in favour of community proposals unless there are reasonable grounds for refusal and there is an appeal to Scottish Ministers. The   Asset Transfer Route Map   was designed to give communities a sense of the whole asset transfer process and it has been split into 4 phases – Phase 1 - Checking it Out When considering an asset transfer, it is important that any request is rooted in the needs of the particular community.  Early stage consultation is key to developing ideas for the site and building support for the project.  Checking out other projects can be an excellent way to hear from other community groups on how they are delivering their services, developed a sustainable proposition and what challenges there have been. Phase 2 - Defining your Project As the ideas for the project develop and the viability is being assessed, contacting the public owner flags the group’s interest and gives the opportunity to request any available information that will assist with the planning of the project.  This could include known issues, burdens on the site, running costs and whether there are any specific reasons why the asset can’t be transferred.  The involvement of key stakeholders at this stage will also be significant.  These stakeholders could be the wider geographic community, existing users, public sector and potential investors.  Although many groups will already have a legal structure, some may not.  It is at this stage that consideration should be given to the legal form which best suits the organisation and the plans for the future.   To be considered as an eligible Community Transfer Body for the transfer of assets under CEA, a community group has to have a written constitution which defines its community (of place or interest), that the majority of its members are drawn from that community, have provision that the membership of this body is open to any member of that community and be able to demonstrate that the members have control of the organisation.  Any surplus funds or assets of the body need to be applied for the benefit of that community. Where the transfer is on the basis of ownership, the community group must be incorporated as a – Company Limited by Guarantee Scottish Charitable Incorporated Organisation (SCIO) Community Benefit Society (Bencom) All with a minimum membership of 20. Community groups who are eligible for the Community Right to Buy or the Crofting Community Right to Buy under the   Land Reform (Scotland) Act 2003   are also eligible to make an asset transfer request.  There is an option for other organisations who do not meet the criteria to seek individual designation from   Scottish Ministers . Phase 3 - Detailed Feasibility and Business Planning As the project progresses, it is likely that input from professional services will be required at this more detailed feasibility and business planning stage.  Much will depend on the scale of the project but development funding could be required to support input from surveyors, architects, planners and business development consultants.  There are a range of grant funds available to support this activity and   COSS Advisers   are happy to discuss the options and signpost to funders and other appropriate support services. Phase 4 - Asset Transfer Request When the formal asset transfer is submitted, the process and timescales laid down in the Community Empowerment (Scotland) Act will be followed by the relevant authorities with community rights of appeal throughout. This is a particularly busy period in the asset transfer process as it is likely that a range of funding applications will be required to support the redevelopment of the asset, ongoing negotiations and finalising terms. Community involvement throughout the whole process is essential not only to garner support from the early stages but the continued involvement throughout the life of the project and gaining longer term commitment to the success of the venture.  And finally, it can be a long journey so do make time to celebrate a successful transfer.   The Community Ownership Support Service is delivered by the Development Trusts Association Scotland.   Funded by the Scottish Government, this adviser-led service provides supports and advice to both communities and relevant authorities in the sustainable transfer of public assets into community ownership . www.dtascommunityownership.org.uk 0131 225 2080 coss@dtascot.org.uk https://www.oscr.org.uk/blog/2018/august/20/asset-transfer-route-map/ https://www.oscr.org.uk/blog/2018/august/20/asset-transfer-route-map/ Mon, 20 August 2018 14:27:46 https://www.oscr.org.uk/blog/2018/august/13/oscr-consultation-on-charity-investments-guidance-and-good-practice/ The process and intention behind creating a practical guide   The project to create this   new guidance   has involved a Reference Group whose members have been a sounding board and useful source of insight on various aspects.  From the earliest discussions on this project, the shared intention has been to create something practical, written without jargon, which can support charity trustees who may be encountering charity investments for the first time.  The guidance is also intended to be relevant for more experienced charity trustees who may have a background in the finance or investment sector, but who may be new to the charity law and regulatory context.  In this way, it is a shared reference point for all trustees of Scottish charities, whether the charity’s investments are stocks and shares, a building, or something else. What’s covered   The guidance is intended to have a logical flow through it, from a starting point which considers what investments are, to covering investment powers and trustee duties, and then the context around why investments are held by a charity and the role they play.  Investment policy is covered in some detail, as well as signposting that an investment policy statement is good practice.  Practical aspects around implementing an investment policy are then set out, as well as case studies, a glossary and ten key points in summary.  The importance of effective risk management is a thread running through the guidance. Help to navigate trickier areas   Reflecting that this is guidance for the 21 st   century, a broader perspective is taken which includes coverage of investments which are intended to deliver both a financial and non-financial return.  It is hoped that the guidance offers help to trustees as they navigate this area, set against the overriding backdrop that trustees should act with care and diligence and in a manner consistent with a charity’s purposes. The consultation asks three main questions: In your opinion do you think the guidance is clear and easy to understand for charities of all shapes and sizes? Do you think the guidance covers the key issues that charity trustees experience in relation to investments? If not, please explain what else you think it should cover. What other resources do you think it would be helpful for us to include on our website to help charity trustees in relation to investments? The consultation runs from 13 August to 21 September 2018 and can be accessed  here . https://www.oscr.org.uk/blog/2018/august/13/oscr-consultation-on-charity-investments-guidance-and-good-practice/ https://www.oscr.org.uk/blog/2018/august/13/oscr-consultation-on-charity-investments-guidance-and-good-practice/ Mon, 13 August 2018 09:31:07 https://www.oscr.org.uk/blog/2018/july/04/governance-is-important-why/ Governance is important. Why? Because it’s in the top three of what the public say is important in order for them to trust charities. They want to see charities are being ‘run well’. They want to know that the money or time they choose to put into your organisation is well looked after. In fact they expect it. I’m privileged to sit on Scotland’s Third Sector Governance Forum as a representative from OSCR. It’s a board made up of governance geeks from across the whole of the third sector. We seek to understand and facilitate ways to help third sector leaders understand about Trustees’ Week -  find out more about us   here . When a newly revised version of the Governance Code for charities in England and Wales was published last year, it inspired the Forum to, not only create a Code for Scotland, but for the wider Third Sector. We also took inspiration from the Northern Irish Code and our vision of a Code was developed further. We wanted to create a tool that helped third sector organisations no matter what size and recognised a set of principles would not be enough to help people on their good governance journey. So we are striving to create an online tool with information and resources to help people understand the principles of good governance, do a bit of self-assessment around the governance of their organisation and then be able to access information that is pertinent to the areas where assistance is required. So hopefully this will help people to address the practical side of things, or at the very least, get people talking and thinking about governance! Following a successful bid for a small pot of money from Scottish Government we were off! We’ve reviewed a number of Codes, drafted some principles then consulted on these at The Gathering in February of this year. We’ve since spent time refining these principles, putting them into plain English and producing, we believe to be, a Governance Code that covers everything you need to know. We want to make sure we’ve created a Code that’s for the sector, by the sector -  so we need the help of third sector leaders and advisors to make sure we’ve got it right. From Chief Executives to charity trustees, director of a social enterprise, committee members of voluntary organisations, TSIs, lawyers or the public – we’d really appreciate it if you could take some time to respond to our consultation by viewing the Code and completing the very short survey here:   https://www.surveymonkey.co.uk/r/ScotGovCode   . The consultation runs from from the 4 th   July to the 3 rd   of August 2018. https://www.oscr.org.uk/blog/2018/july/04/governance-is-important-why/ https://www.oscr.org.uk/blog/2018/july/04/governance-is-important-why/ Wed, 04 July 2018 15:06:24 https://www.oscr.org.uk/blog/2018/june/11/common-reporting-standard-does-it-apply-to-you/ The Common Reporting Standard was introduced in early 2016. Charities should make themselves aware of its requirements because they may be falling foul of the law by not complying. This short blog should demystify what the Common Reporting Standard is, how it affects charities and what the practical implications are where it applies. What is the Common Reporting Standard? Essentially the Common Reporting Standard (CRS) has been introduced in the UK to prevent tax evasion. The principles of the legislation which introduced the CRS regime are not unique to the UK - they are the result of a drive by the G20 nations to develop a global network of legislation to prevent individuals and entities using offshore structures to evade tax. The CRS is sometimes also referred to as the Automatic Exchange of Information (AEOI). Who does it affect? In basic terms, the legal requirements affect UK 'financial institutions' who are required to undertake due diligence on their account holders. The majority of charities will not be affected. However, the definition of 'financial institution' under the CRS is broad and therefore some charities will be included in the definition, for example: charities that have an endowment fund where the endowment asset is a portfolio of investments those that receive more than half of their income from investments where their assets are managed by a third party (such as a bank or investment manager). The first potential challenge for charities is that they will have to work out whether or not they are actually required to report. HMRC have produced guidance for charities on the requirements of the CRS and this was updated in December 2017 when the definition of gross income was amended (this is relevant to the assessment of whether an organisation falls into the reporting requirements). The Association of Charitable Foundations have produced a useful  flowchart  that charities may find helpful in determining if the requirements of CRS apply to them or not. However, one point to note here is that the definition of Gross Income for CRS purposes is not necessarily the entire income of the charity which is how this term is generally used. Instead it is specifically defined by HMRC for this purpose and their definition was amended in December 2017. There are some  brief guides  available that explain the changes made and how the definition works in practice. What will this mean in practice for charities? Where a charity has established that the requirements of the CRS apply to it, the next job is to ensure the charity is equipped to meet the reporting requirements. The exact requirements will depend on the legal form of the charity - trusts and unincorporated associations have different requirements from charitable companies and SCIOs for instance. However, there are four basic elements that will be relevant:  Carry out due diligence – what is required will depend on the charity’s legal form. Register with HMRC – before a charity can report the required information it will need to register with HMRC as a ‘financial institution’ and will have to register at least 24 hours before it wants to report. Report to HMRC – make sure this is done on time as there are financial penalties for non-compliance Consider human rights and whether the exchange of information could interfere or put at risk the human rights of individuals concerned. There is  guidance from HMRC  available on the requirements plus other  bite-size pieces of guidance  too. However, this is a technical area and charities are likely to find the services of a professional advisor helpful in establishing whether the CRS requirements apply to them and if so to understand exactly what reporting is required. Remember, don't be nervous about seeking help - it's better to ask than to end up with a penalty for failing to meet a legal requirement! https://www.oscr.org.uk/blog/2018/june/11/common-reporting-standard-does-it-apply-to-you/ https://www.oscr.org.uk/blog/2018/june/11/common-reporting-standard-does-it-apply-to-you/ Mon, 11 June 2018 10:57:27 https://www.oscr.org.uk/blog/2018/april/17/vlog-an-update-on-safeguarding/ In the video below, Jude Turbyne (OSCR’s Head of Engagement) provides an update on safeguarding. Jude discusses:           why safeguarding should be a priority for Scottish charities           what steps charity trustees can take           the upcoming summit  on safeguarding and beyond           when further guidance will be available. Note - this video has subtitles should you require them. https://www.oscr.org.uk/blog/2018/april/17/vlog-an-update-on-safeguarding/ https://www.oscr.org.uk/blog/2018/april/17/vlog-an-update-on-safeguarding/ Tue, 17 April 2018 10:43:18 https://www.oscr.org.uk/blog/2018/april/04/gdpr-and-direct-marketing/ With 25 May fast approaching – and with it the implementation of the General Data Protection Regulation (GDPR) - it’s time to talk about an activity that is key to most charitable organisations, direct marketing. It’s important to note the term direct marketing isn’t just about raising money or selling products but covers all promotional material including the promotion of aims and ideals. At present, if you’re planning a direct marketing campaign, you’ll need to comply with the Data Protection Act (DPA) and the Privacy and Electronic Communications Regulations 2003 (PECR). From May 25, the GDPR will replace the DPA but not PECR - so you’ll need to comply with both. The EU is in the process of replacing PECR with a new ePrivacy Regulation (ePR) but this has yet to be finalised. We have a range of resources available on our website to help charities comply with PECR and the new GDPR legislation but in the meantime here are some top tips based on questions we regularly hear from the voluntary sector. Lawful basis I cannot emphasise enough the importance of identifying your lawful basis for marketing, this is the foundation for overall compliance. Generally, there will be two lawful basis on which marketing activity may rely:   consent   and   legitimate interests . Our website has checklists to help you identify the most appropriate lawful basis but it is important to note that: You   cannot   change your lawful basis to suit your requirements at the time; and You need to be aware of what rights individuals can exercise under your lawful basis.   Consent The GDPR sets a high standard for consent. It must be a freely given, specific, informed and unambiguous indication of the individual’s wishes, with some form of clear affirmative action - a positive opt-in. Consent cannot be inferred from silence, pre-ticked boxes or inactivity. Consent must also be separate from other terms and conditions and must be as easy for people to withdraw consent as it was to give. You don’t need to refresh existing DPA consent if it is already GDPR compliant. The   checklist   on our website sets out the steps you should take and can help review existing consents and decide whether or not they meet the GDPR standard. If existing DPA consents don’t meet the GDPR’s high standards or are poorly documented, you will need to seek fresh GDPR- compliant consent, identify a different lawful basis for your processing (and ensure continued processing is fair), or stop the processing. You are also likely to need consent under PECR for many marketing calls, texts and emails. There’s more detail on this in our   Guide to PECR . Legitimate Interests If you don’t need consent under PECR you can rely on legitimate interests as your lawful basis for marketing activities, if you can show how you use people’s data is proportionate, has a minimal privacy impact, and people would not be surprised or likely to object. There are three elements to the legitimate interest basis so it may help to think of this as a three-part test: Identify a legitimate interest; Show that the processing is necessary to achieve it; and Balance it against the individual’s interests, rights and freedoms. The legitimate interests can be your own interests or the interests of third parties. They can include commercial interests, individual interests or broader societal benefits.However, you must balance your interests against the individual’s and if they would not reasonably expect the processing, or if it would cause unjustified harm, their interests are likely to override your legitimate interests. Remember that you must include details of your legitimate interests in your privacy information. You can find more detail in the   legitimate interests section of our Guide to GDPR .   Profiling Another area I get asked a lot about is profiling - automated processing of personal data to evaluate certain things about someone. Profiling is allowed but people need to know it is happening and given the opportunity to object. There’s a   profiling checklist and more detail in our Guide to the GDPR .   ICO GDPR resources There’s a whole suite of materials on our website to help organisations navigate through the new law. This includes a  section for charities  featuring a set of GDPR FAQs and a Getting Ready for the GDPR self help checklist. To keep up to date with GDPR news as it becomes available you can subscribe to the  ICO’s monthly e-newsletter . https://www.oscr.org.uk/blog/2018/april/04/gdpr-and-direct-marketing/ https://www.oscr.org.uk/blog/2018/april/04/gdpr-and-direct-marketing/ Wed, 04 April 2018 08:25:19 https://www.oscr.org.uk/blog/2018/march/21/safeguarding-an-update/ It is slightly over a month since the alleged sexual misconduct of Oxfam staff in Haiti hit the headlines. Since then there has been a lot of activity on the issue of charities and safeguarding. Two summits were held in London to consider next steps.  The summit on the 5 March 2018, hosted by the Charity Commission for England and Wales (CCEW) and the Department for International Development (DfID) concentrated on charities working internationally. On the following day, CCEW and the Office for Civil Society at the Department for Digital, Culture, Media and Sport hosted an event looking at the issues from the perspective of charities working within a UK context. The summits were very different, but many of the emerging themes were similar.  Getting policies and procedures for the safeguarding of children and vulnerable adults is essential.  However, these safeguarding policies are not enough.  To create a culture of zero tolerance to sexual exploitation and abuse means confronting a societal problem of power and inequality, particularly gender inequality.  For some organisations, confronting this problem will be more challenging than for others.  However, if the right leadership and culture is not in place within the organisation, then unacceptable behaviour can and will creep in.  It was also acknowledged that there may be particular challenges for smaller organisations and that it is essential to find ways of sharing good practice across the sectors.  There are some big issues to deal with, then.  However the level of commitment at each of the summits was extremely good.  In the international summit, a   joint statement   was produced committing the charity signatories to act on 5 key areas: accountability to beneficiaries and survivors a shift in organisational culture safeguards in the employment cycle rigorous reporting and complaints mechanisms and prompt and appropriate action on concerns.  The domestic summit defined 4 themes for priority action: leadership, culture and values law, regulation and the statutory framework capacity and capability in charities around safeguarding and reporting, accountability and transparency.  At OSCR we are committed to playing our part in this journey towards strengthening safeguarding and wider cultural change across the charity sector by helping hold charities to account. This will be a priority area of work for us over the coming year.  Our safeguarding guidance will be published by May 2018, and we will be making sure that our annual return and our new online registration form (coming this summer) will include pertinent safeguarding questions.  We are working with other partners to look at the best way of supporting charities, small and large, as part of our commitment to being a positive, preventative and proportionate regulator. https://www.oscr.org.uk/blog/2018/march/21/safeguarding-an-update/ https://www.oscr.org.uk/blog/2018/march/21/safeguarding-an-update/ Wed, 21 March 2018 07:10:33 https://www.oscr.org.uk/blog/2018/march/14/protecting-your-charity-from-abuse-through-terrorist-financing-and-money-laundering/ Terrorist financing and money laundering might not be top of your list in terms of risks facing your charity. Indeed, the evidence from the National Risk Assessment of Money Laundering and Terrorist financing (2017) published by HM Treasury and the Home Office is that the risk across the non-profit sector in the UK is low. However, it is still a real risk, and if a charity were to unintentionally be used for terrorist financing or money laundering purposes, it would have a disproportionate impact on the trust and confidence that the public has in the charity and, potentially, in the charity sector overall. The use and abuse of charities might be to do with exploiting charity funding, or making use of charity assets. It might be to do with simply missing a charity name and status. At the intentional end of the spectrum, it may even include setting up a charity for terrorist financing purposes. So, what can be done to help protect your charity against these risks? At a fundamental level, controlling against terrorist financing and money laundering is about good governance. As a charity trustee you have a duty to act in the interest of your charity. As a trustee board, you have a responsibility to make sure you are looking after the total assets of the charity, making sure they are only used for charitable purposes. So having the appropriate governance and processes in place is fundamental to protecting your charity from abuse. This starts at the crucial level of making sure that the trustees are engaged, that they understand their function and responsibilities, and that they have a good analysis of the risks their organisations might face. Not surprisingly, an essential part of protecting your charity will be making sure that your financial controls are strong and appropriate for your type of charity. The duties that trustees have to follow include the duty of care and diligence when managing the affairs of the charity. This means that you must act with a higher level of care than you do with your own finances - consider, for instance, the level of care that you would apply if you were dealing with the finances of another person. Good financial controls are fundamental tools for making sure that you manage the charity effectively and protect the charity's assets from risks of theft, fraud, loss, conflicts of interest and terrorist financing. One overarching control is making sure that charity trustees understand the accounts and financial position of their charity, and that these are reviewed frequently. No individual trustee is more responsible for the financial management of a charity than any other. There is a collective responsibility across the trustee board. This shared review of accounts takes away the inherent weakness of having the power over financial management in the hands of one individual which would tend to heighten the possibility of making mistakes or (worse) the individual being open to corruption. Each charity will be different, but there are some things you need to consider as you think how best to protect your charity. Might you need a finance committee? This would be a committee that has more time to devote to overseeing financial matters and making sure that the necessary information is getting to the whole board. Are you sure that you have sufficient separation of duties within your charity? If one individual has the power of money without any checking, this will create an inherent weakness in the system. How are your procedures written down and communicated to the necessary people (trustees, staff, volunteers)? Have you got appropriate controls over use of cash? (Cash is an inherently risky proposition and needs to have tight procedures and controls around its use). Do you have the appropriate banking arrangements for your organisation (and are you making sure you are using the regulated banking system)? And have you got the appropriate procedures in place for writing cheques, setting up direct debits or standing orders? That may seem like a lot of questions. But getting this bit right will make sure that your organisation is protected and will make sure it is not an easy target for abuse by those seeking to finance terrorism or launder money through a charity. https://www.oscr.org.uk/blog/2018/march/14/protecting-your-charity-from-abuse-through-terrorist-financing-and-money-laundering/ https://www.oscr.org.uk/blog/2018/march/14/protecting-your-charity-from-abuse-through-terrorist-financing-and-money-laundering/ Wed, 14 March 2018 08:51:15 https://www.oscr.org.uk/blog/2018/january/09/gdpr-legal-basis-for-processing-and-transparency/ Welcome back to our series of blogs looking at the upcoming General Data Protection Regulation (GDPR). It’s less than six months until 25 May 2018 and it’s time to start getting into the nitty gritty of your preparation. One of the best places to start is with your organisation’s purpose for processing personal data.  The current Data Protection Act 1998 (DPA) established specific conditions or purposes for processing and these can be found in   Schedules 2 and 3   of the Act. If you are processing sensitive personal data you must have a condition from both Schedules however if you are processing non-sensitive data you only need a condition from Schedule 2.  Under the GDPR and the new Data Protection Bill presently going through the UK Parliament, these conditions will persist.  However, under the GDPR they are no longer referred as ‘conditions’ they become   legal bases   for processing. The GDPR equivalent of Schedules 2 and 3 are found in   Articles 6 and 9 respectively . For legal bases not explicitly set out in the GDPR, the Data Protection Bill provides equivalents.   If that’s all that’s changed, what’s the big deal?   The big deal is the   accountability principle   which requires organisations to document their legal bases for processing information as part of their evidence of compliance.  Theoretically, this should be simple, but many organisations are finding that what they originally thought was their scheduled condition for processing under the DPA was not identified properly at the time or has changed. So it’s important to establish the correct legal bases for processing to ensure compliance with the new regulations.  It’s important because your legal bases for processing dictate what rights an individual has over their personal data. In particular,   consent   gives individuals much more control over their data and it’s uses than they have currently.   What does this have to do with transparency?   People have the   right to be informed   regarding the use of their personal data so organisations must be transparent about how and why they are using personal information. This is typically done through a data processing notice, or privacy notice, although it can also be done verbally for example when taking personal information over the phone.  Article 13 of the GDPR sets out what information an organisation must include in its privacy notice which includes its legal bases for processing personal data.  There’s a handy checklist to help you identify what needs to be included in the   Right to be Informed   section of our website. We also have a   Privacy Notices Code of Practice   which has been updated for the GDPR.   Is that all we need to do?   Not quite. The GDPR also sets out that any communications, including privacy notices, must be: concise, transparent, intelligible and easily accessible; written in clear and plain language, particularly if addressed to a child; and provided free of charge. As an organisation you need to think about who your audience is as you create your notice. For example, if you regularly work with non-English speakers or visually impaired individuals you may consider producing the notice in formats they will understand. Next Time… In my next blog I’ll remove the mystery around the accountability principle. Until then you can subscribe to the   ICO’s monthly e-newsletter , and take a look at our newly published   Guide to the GDPR . https://www.oscr.org.uk/blog/2018/january/09/gdpr-legal-basis-for-processing-and-transparency/ https://www.oscr.org.uk/blog/2018/january/09/gdpr-legal-basis-for-processing-and-transparency/ Tue, 09 January 2018 08:44:42 https://www.oscr.org.uk/blog/2017/december/05/the-lobbying-scotland-act-2016-and-what-it-means-for-your-charity/ Following considerable scrutiny and debate, the Lobbying (Scotland) Act 2016 became law in April 2016. That debate recognised lobbying as a legitimate and valuable part of our democratic process, whilst agreeing that the creation of a public Lobbying Register was appropriate to enhance public transparency, for certain types of lobbying. The Scottish Parliament was given the duty to develop and implement the systems and guidance to operate the new Lobbying Register and committed to do so within 2 years of the Act being passed. Dougie Wands, Acting Lobbying Registrar, summarises what to expect for those involved in face-to-face lobbying of MSPs, members of the Scottish Government, junior Ministers, Special Advisers or Permanent Secretary. To assess whether the Act will impact on your charity, it’s crucial to know what “forms” of lobbying it applies to.  The Act creates a definition of   regulated lobbying   and only instances of regulated lobbying will require to be recorded on the new Lobbying Register. Parliamentary Guidance has been developed in conjunction with the Lobbying Register Working Group, a key group of representatives from business, public relations, third sector organisations, key representative bodies and individuals from the legal sector, the pro-transparency community and journalism. And it is within the Parliamentary Guidance you will find our     Key Steps   (more at   www.parliament.scot/lobbying ). The 5 Key Steps help to describe concisely what regulated lobbying is.  If any of the following 5 Key Steps don’t apply to your circumstances then you will not be engaged in regulated lobbying. Step 1  makes clear that regulated lobbying applies to oral communications (plus use of sign language); and only those which are made face-to-face (including by video conference) with MSPs, members of the Scottish Government (including Scottish Law Officers – the Lord Advocate and the Solicitor General), junior Ministers, Special Advisers or Permanent Secretary.   Regulated lobbying does not apply to any other types of communication, such as emails, letters, tweets, phone calls, etc.  Step 2  sets out that regulated lobbying only applies to communications made regarding Scottish Government or Scottish Parliament functions.  Significantly, there is no exclusion to where or when regulated lobbying can take place.  That means it is possible that regulated lobbying could take place anywhere and at any time and not just in formal situations when you meet any of the individuals listed above.   In some of these less formal situations, a conversation may well not develop into a discussion which would be regulated lobbying, however, if you choose to use this opportunity to lobby, you should keep in mind that any discussion can count, regardless of where it takes place.  With regulated lobbying it is the content of the conversation you have that counts.  Of course, that conversation has to concern Scottish Government or Scottish Parliament functions and you would also be using the opportunity to inform or influence decisions on behalf of your charity, or those charities you represent. That’s acknowledged in our   Step 3 .   Importantly, you also have to be paid in some capacity, which is set out as   Step 4 .  That means payment in the widest context – not just payment for a particular piece of lobbying.  So, if your charity (or those you represent) pays you a salary or provides other forms of payment, then that will count too.   Step 5  explains that even if your communication matches all four previous steps, there are 13 exemptions in the Act, covering a wide range of circumstances and organisational status.  As such, a large part of the Parliamentary Guidance is committed to explaining the exemptions in more detail, so you can make a considered decision about whether the lobbying activities you engage in are actually regulated lobbying.   On 23 October 2017 the Lobbying Register Team at the Scottish Parliament announced the launch of a familiarisation period that will run until February 2018. The website is available at   www.lobbying.scot , where you will also find a video by Billy McLaren, introducing the Scottish Lobbying Register. You can register on the site and submit mock returns, as well read the parliamentary guidance in order to prepare your organisation for the Act being fully commenced.   With all of this, the Lobbying Register Team will be on hand to help. Register with us at   lobbying@parliament.scot   to receive our regular e-bulletins and keep up-to-date with all developments as we move towards our formal launch next year. https://www.oscr.org.uk/blog/2017/december/05/the-lobbying-scotland-act-2016-and-what-it-means-for-your-charity/ https://www.oscr.org.uk/blog/2017/december/05/the-lobbying-scotland-act-2016-and-what-it-means-for-your-charity/ Tue, 05 December 2017 11:01:09 https://www.oscr.org.uk/blog/2017/november/30/a-message-from-oscr-s-ceo-david-robb/ The next few months look busy for ‘Team OSCR’. On the horizon we have new guidance, expanded web services and an updated survey into the public perception of Scottish charities, and charity views of our services. I know that this time of year is also an exceptionally busy time for many charities and everyone at OSCR wishes you well with this.  In Scotland, the public are generous when it comes to donating, especially at this time of year.  That is fantastic, but donors are becoming more aware of the need to do so safely.  By giving incorrectly, they could be funding illegal activity or they could be putting their personal information at risk.  In the summer, we released some   top tips on giving .  Charities should be aware of this advice when they ask the public for donations as they may be faced with more questions than ever before.  And remember, a significant number of Scottish charities have an annual return submission deadline during the festive period and late reporting is something that can affect how your charity is perceived – don’t start 2018 in default! At the beginning of November we focused attention on celebrating the ‘secret superheroes’ of the charity sector, our 180,00 trustees.  I really think it is important that we take a moment each year to do this, and to applaud the dedication and endeavour of our boards and management committees – there would be no charities without you and your work makes a vital difference in communities throughout Scotland and beyond. I hope you were able to participate, however fleetingly, in   Trustees’ Week   and that it helped renew our collective commitment to the highest standards of governance.  Nobody needs reminding that we live in challenging times.  The persons in management and control of our charities (aka ‘trustees’) need to be at the top of their game to steer their organisations through the choppy waters of Brexit, restrictions in public finances and, more recently, a heightened focus on possible abuses of power leading to bullying or harassment.  Whilst there is no suggestion that sexual harassment is any more prevalent in the charity sector than in other walks of life, neither should we imagine that charities are immune to the problems, which of course are not new, but which may be receiving additional attention in this time of heightened public and media scrutiny.  The wider public place high levels of trust in charities all year round and our main focus as regulator is to help underpin that trust and confidence so that our charity sector remains vibrant and dynamic, and provides real public benefit. "Leadership requires five ingredients: brains, energy, determination, trust, and ethics. The key challenges today are in terms of the last two - trust and ethics."  Fred Hilmer I hope that in the current climate, trustees are re-visiting their governance, re-assessing risks, with a particular focus on vulnerable beneficiaries, volunteers or staff, and are ready to take swift action to protect their charity’s reputation if required.  Be proportionate, but be prepared.  After all, superheroes are expected to come to the rescue… https://www.oscr.org.uk/blog/2017/november/30/a-message-from-oscr-s-ceo-david-robb/ https://www.oscr.org.uk/blog/2017/november/30/a-message-from-oscr-s-ceo-david-robb/ Thu, 30 November 2017 12:46:29 https://www.oscr.org.uk/blog/2017/november/20/gdpr-overview/ If you work in the charity sector it’s hard to avoid the General Data Protection Regulation (GDPR). It’s in the papers, on the blogs and there’s even whole conferences dedicated to it. (If you weren’t at the SCVO’s Data Protection: Get Ready for GDPR conference on 21 st   of September then see what you missed   here .) But just what does the GDPR mean for organisations? And what’s going to happen on the 25 th   of May 2018 when it comes into force?  This is the start of a series of 6 blogs where I’m going to delve into the key areas of the GDPR and hopefully allay some of your fears. For today I’m going to start off lightly with a brief overview of the legislation and what it means for your organisation, but next week I’ll be jumping in feet first to fair and lawful processing and the importance of transparency.  The papers say we’re doomed!   No you’re not! All that stuff about small businesses and charities not being able to afford to comply with the GDPR is, as a certain US president likes to say, fake news. If you don’t believe me then check out   this blog   by our Information Commissioner Elizabeth Denham where she talks about GDPR misinformation.   GDPR is an Evolution, Not a Revolution   I stole that catchy phrase from our   Deputy Commissioner (Policy) Steve Wood’s blog   as it describes GDPR in a nutshell. While there are new rights for individuals and responsibilities for organisations a lot of the current Data Protection Act (DPA) transfers over into the GDPR. For example, the data processing   principles set out in the GDPR   are similar to those in the DPA however there is a   new accountability requirement   which puts responsibility on an organisation to evidence their compliance.  There are also a lot of the same rights, they’ve just been enhanced so that we, as individuals, have more control over our data. You’ve probably seen the Right to be Forgotten under GDPR popping up, but did you know this right exists in the current DPA? The main difference, and this goes for other rights like restriction of processing, is that under GDPR individuals can exercise this right without a court order so organisations need to think about how they’re going to respond to these requests.  It’s Not Just GDPR…   This is the technical bit but it’s important. In May next year it’s not just the GDPR you need to comply with, it’s also the Data Protection Bill (DPB). The GDPR doesn’t cover everything to do with personal data, things like exemptions and the powers of the regulatory authority (that’s us, the ICO!) are left up to member states to decide. The DPB will also encapsulate the Law Enforcement Directive so if you were wondering where that was in the GDPR (it can’t just be us legislation nerds that have read the GDPR?) you’ll find it in Part 3 of the DPB.  Does the GDPR apply to us?   Whether your organisation processes personal data electronically or the “old fashioned” way the answer is probably yes.     The ICO is here to help   I promise we don’t bite (unless we need to). We have a whole section of our website dedicated to   Data Protection Reform  and we’ve produced   12 Steps to Take Now   to help you get ready for the GDPR. We even have a   Getting Ready for the GDPR self-assessment tool   and if you want to make sure you’re totally up to date with everything happening in data protection you can subscribe to our   monthly e-newsletter . Most importantly, all of our resources are FREE so head over to   our website   and start making the most of them and I’ll see you in my next blog. https://www.oscr.org.uk/blog/2017/november/20/gdpr-overview/ https://www.oscr.org.uk/blog/2017/november/20/gdpr-overview/ Mon, 20 November 2017 14:26:02 https://www.oscr.org.uk/blog/2017/october/17/how-to-do-due-diligence-before-becoming-a-charity-trustee/ I’m often asked about the kind of research you should do, when looking at an advert for a charity trustee role and deciding whether to apply.  How can you find out what you’re getting into?  What questions should you ask?  My first experience on a charity board began in 2013.  I had good support in finding out about the charity beforehand, through conversations with both the Chair and another trustee.  There was also a new trustee Induction Session shortly after joining.  Looking at my recent finance committee role, I was invited to participate in a committee meeting as an observer first, before joining the committee.  Having contact with others already involved in the board/committee before you take on the role is helpful.  It means you go in with the benefit of a heads-up on current priorities.  Here are my top ten tips if you’re looking to take on a charity trustee role, to help guide your due diligence:   1         What’s the background to the trustee vacancy? Try to find out why the charity is looking for a new trustee.  Is it filling a specific gap in expertise around the board table?  Has someone’s tenure come to an end (a three year term or six year term, for example).   Ask questions if there’s a high number of vacancies at the same time.   2         Is the charity up-to-date with its filings with OSCR? Check out the   OSCR website   – are there any red flags for overdue or late filing of the charity’s annual return?  If so, try to find out about the reasons behind that.   3         What type of charity is it? What is the underlying legal form of the charity – is it a deed of trust or unincorporated association, or is it something else?  It would be helpful to see the charity’s governing document.  If it’s a deed of trust or unincorporated association, go in with eyes open – these forms of charity involve the potential for more personal liability for trustees, as compared to a company limited by guarantee or SCIO.   You might want more reassurance in a situation where the charity has extensive activities and operations, as compared to a grant-making charity.  Many charities use the word “Trust” in their name, but the underlying legal form of the charity may be something else, so best to check the governing document.   4         What other committees could I get involved in? What kinds of sub-committees does the charity have, and will you be expected to join one of them?  A sub-committee is a great way to support more aspects of the charity’s operations and could give you insight into finance, audit, risk, nominations, HR, fundraising or other areas.  It’s best to get clear on the level of time commitment, as this could double the number of meetings you attend each year.    5         Is the charity at risk of running out of money? Check out the charity’s finances from their most recent annual report and accounts, usually available on the website of the charity.  What are its finances like?   6         Search online Have a look online at the charity’s website and its most recent annual report and accounts, for insight into the charity’s activities.  Search online for any news reports, and ask about any areas of concern so you can find out any important context around news reports.   7         How long have others been on the board? How long have the CEO, Chair and other trustees been in role?  What does the governing document say about length of tenure?  It’s not unusual for there to be a term of 3 years for a trustee, say, which can be extended to a second term of 3 years (or even a maximum third term of 3 years).  A board full of very long serving trustees may not be a healthy signal.    8         What are the key relationships like? What is the relationship like between the CEO and Chair?  What’s the relationship like between the Chair and other board members?    9         What are the logistics around meetings? How often are meetings held?  Where are they held, and at what time of day?  Do you have the option to dial-in?  The geography and timing needs to match your availability.    10     Are there any other expectations? Does the charity have any other expectations of board members? For example, representing the charity at sector events?  Liaising with other stakeholders?  Supporting funding applications?    Taking on a charity trustee role is a great way to volunteer your time, and gain new experience, with a charity.  Doing some research before getting involved will help you go in with your eyes open.    For more insight in this area, check out the   SCVO guidance   on recruitment and induction of charity trustees.   Julie Hutchison is the Charities Specialist at Standard Life Wealth https://www.oscr.org.uk/blog/2017/october/17/how-to-do-due-diligence-before-becoming-a-charity-trustee/ https://www.oscr.org.uk/blog/2017/october/17/how-to-do-due-diligence-before-becoming-a-charity-trustee/ Tue, 17 October 2017 09:04:35 https://www.oscr.org.uk/blog/2017/july/05/fundraising-an-update/ Fundraising has been in the news again this week, with the Fundraising Regulator announcing the start-up of the Fundraising Preference Service (FPS).  It struck me that it was probably a good time to clarify what is happening in Scotland and, particularly, why the FPS is not being introduced for Scottish charities. But first, what is the FPS?  It is an online based service that allows any member of the public in the UK to manage communications from charities that are registered with the Charity Commission for England and Wales (CCEW) or with the Charity Commission for Northern Ireland (CCNI).  When you log on, you can identify up to three charities from which you want to stop emails, telephone calls, addressed post, and/or text messages.  If you want to identify more, then you can submit further requests.  There is more information on this on the Fundraising Regulator's website. But why will the FPS not be used for Scottish charities?  The FPS was originally proposed in the review of fundraising regulation in England and Wales, led by Sir Stuart Etherington, which resulted in the report,   Regulating Fundraising for the Future .  The Scottish Fundraising Working Group was set up to consider the issue of fundraising regulation in Scotland.  In a very different context, and with a constituency that is heavily weighted towards small and medium sized charities, the focus was on how to create a system that could help support and develop high quality fundraising practice here.  The extent to which the FPS could contribute to such a system was considered.  However, after looking at the information available and consulting with key organisations and individuals, there wasn’t enough evidence to suggest that the FPS would offer anything over the current legal requirements (the Telephone Preference Service and the Mail Preference Service).  Rather, it was felt that time and energy would be better spent on raising fundraising standards across Scotland, a big part of which would be to ensure that charities understood the practical ramifications of their legal obligations.    In a sector where over 50% of charities have an income of less than £25,000, it is important to try and get the balance right between facilitating compliance through information sharing and guidance, and being ready to act strongly where charities make serious mistakes.  The current system is designed to do this for fundraising, with the emphasis on raising standards of fundraising and complaints handling being backed up by a vigorous approach to adjudicating complaints by the   Scottish Fundraising Standards Panel . https://www.oscr.org.uk/blog/2017/july/05/fundraising-an-update/ https://www.oscr.org.uk/blog/2017/july/05/fundraising-an-update/ Wed, 05 July 2017 14:49:30 https://www.oscr.org.uk/blog/2017/may/30/mediation-when-can-it-be-used/ The very passion and commitment that draws people to charities means that points of view can be held very deeply and disputes can very quickly escalate. Mediation can be used at any stage of a dispute from the early warning signs up to the point where positions are entrenched, “everything has been tried” and no solution can be envisaged.  Mediation is one of the most successful ways of resolving a dispute or disagreement. It is entirely voluntary and is usually much quicker and more effective than traditional dispute resolution methods such as grievance and complaints procedures.  Mediation involves a skilled, independent mediator who supports both parties in finding a solution to the issues they are facing. The mediator helps people work out and express what their issues are and then explore what options might be available for moving forward.  The mediator does not take sides or make judgements but will make sure that everyone gets a chance to tell their version of events, hear the other side, work through the issues that are important to them and come to an agreement on how to move forward.  Mediation is very flexible and can be used in most situations including -  Disagreements within boards or between Chairs and boards that cannot be resolved through normal discussion Disputes between staff and/or volunteers and boards Disputes between staff/volunteers and managers Personality clashes Complaints of harassment or bullying Customer/user complaints Issues arising from mergers Issues arising from partnership working and collaboration  All of these scenarios can be very destructive and stressful, not to mention costly, and on occasion can put the very existence of a charity at risk.  There are very few disputes where mediation is not appropriate  - for example if criminal activity is involved. If in doubt call the Scottish Mediation Helpline on 0131 556 118 for confidential advice.  Is mediation successful? Yes – mediation is a voluntary process and only takes place if both parties agree that they want to find a solution. Most mediations are successful in reaching agreements, and people are more likely to stick to agreements made in mediation than when something was decided more formally or imposed.   Mediation in Charities Scottish Mediation can arrange for a professional, accredited mediator to conduct a mediation at a low cost depending upon the size of the charity.  Charities with an income of under £50,000 p.a. may be eligible for pro-bono mediation at no cost. For more information or to discuss a specific case contact the Scottish Mediation Helpline on 0131 556 118 and quote “Third Sector”. https://www.oscr.org.uk/blog/2017/may/30/mediation-when-can-it-be-used/ https://www.oscr.org.uk/blog/2017/may/30/mediation-when-can-it-be-used/ Tue, 30 May 2017 11:22:02 https://www.oscr.org.uk/blog/2017/may/15/the-third-sector-social-return-and-achieving-common-goals/ What society does, and what it seeks to achieve with its money ultimately determines the type of society we live in.  All of us who work or volunteer in the sector do so because we want to see social or environmental change for the better.  We work hard on a daily basis to bring those to realise that ambition.   My final blog on charities and social investment considers the enormous positive impact that the third sector would have if we collectively used all our financial resources and purchasing power to secure social returns when we consider where and how we spend our money.  According to the most recent statistics from the Scottish Council of Voluntary Organisations (SCVO),  there are 45,000 voluntary organisations in Scotland of which 50% are registered charities.   The sector has an annual turnover of £4.9bn of which over £4bn is spent on charitable activities.  It employs approximately 138,000 people, has an estimated 1.3m volunteers and is governed by about 250,000 trustees.   The collective financial clout of the whole sector (organisations; staff; trustees; volunteers) is therefore significant, and our social and environment influence could be huge if, when buying everyday items, we used companies that deliver a cleaner environment or pay employees the living wage or employ disabled people. The step change in society that we all work to deliver would be realised sooner rather than later.  In Scotland there are now a wide range of options that permit us to do that. There are everyday products and services that are stocked in high street stores, as well as online that when we purchase them we also purchase social outcomes. There are social banks established specifically to behave in an ethical and equitable manner and who only lend to businesses and organisations with positive impact.  There are investment funds that are run for the benefit of their members as they have no shareholders and can also offer a financial return as good as any mainstream investment.   The SCRT will shortly add to this list of options by offering the whole sector the option to financially invest into our sector so that community businesses and third sector organisations have suitable and appropriate lending options.  The social and the financial working in harmony to ensure that the Third Sector and the communities it supports all across Scotland are more robust, sustainable and vibrant.    Pauline Hinchion is the Director of the Scottish Community Re: Investment Trust (SCRT) ( www.scrt.scot ) https://www.oscr.org.uk/blog/2017/may/15/the-third-sector-social-return-and-achieving-common-goals/ https://www.oscr.org.uk/blog/2017/may/15/the-third-sector-social-return-and-achieving-common-goals/ Mon, 15 May 2017 13:13:16 https://www.oscr.org.uk/blog/2017/may/03/mediation-why-should-i-consider-it/ Mediation is one of the most successful ways of resolving a dispute or disagreement and is particularly effective in “nipping issues in the bud” before they become too disruptive. It is a flexible process and can be used in a wide variety of situations. It is entirely voluntary and is usually much quicker and more effective than traditional dispute resolution methods such as grievance and complaints procedures. Mediation involves a skilled, independent mediator who supports both parties in finding a solution to the issues they are facing. The mediator helps people work out and express what their issues are and then explore what options might be available for moving forward. The mediator does not take sides or make judgements but will make sure that everyone gets a chance to tell their version of events, hear the other side, work through the issues that are important to them and come to an agreement on how to move forward. What are the benefits of mediation?   Mediation:  helps people to solve problems that they are facing is completely confidential is unbiased and non-judgemental is voluntary encourages early resolution of disagreements puts the people involved in control of the outcome is less formal than grievance and complaints procedures or employment tribunals is less stressful could be cheaper could resolve your dispute more quickly shows that you are keen to resolve your dispute amicably Why do people choose to mediate?   There are a number of reasons why people choose to mediate, including:  they want to maintain a relationship with the people they have a dispute with. they want the dispute and any agreement to be confidential. they want to stay in control of the process they are worried about the costs or the delay in waiting for formal grievance or complaints processes there may be outcomes that can be agreed which formal processes could not award. they know that if mediation is not successful they can still use more formal processes. mediation reflects core values such as respect, working cooperatively, empowerment, openness and honesty.  Is mediation successful?   Yes – Mediation is a voluntary process and only takes place if both parties agree that they want to find a solution. Most mediations are successful in reaching agreements, and people are more likely to stick to agreements made in mediation than when something was decided more formally.  Mediation in Charities Scottish Mediation can arrange for a professional, accredited mediator to conduct a mediation at a low cost depending upon the size of the charity.  Charities with an income of under £50,000 p.a. may be eligible for pro-bono mediation at no cost. For more information or to discuss a specific case contact the Scottish Mediation Helpline on 0131 556 118 and quote “Third Sector”. https://www.oscr.org.uk/blog/2017/may/03/mediation-why-should-i-consider-it/ https://www.oscr.org.uk/blog/2017/may/03/mediation-why-should-i-consider-it/ Wed, 03 May 2017 13:46:15 https://www.oscr.org.uk/blog/2017/april/24/three-key-digital-concepts-for-every-charity/ Digital transformation has been leading the way and is a growing area for many Scottish and UK charities - helping them to improve their processes, increase productivity and ultimately drive growth. However, the Skills Platform’s Charity Digital Report revealed recently that whilst some charities are already reaping the rewards of digital, many are still struggling. In direct response to this, the Skills Platform and Zoe Amar Communications launched the  Charity Digital Toolkit. This is a sequel to the successful Charity Social Media Toolkit and showcases best practice, expert insight and practical tips to directly help charities navigate through digital transformation. The Charity Digital Toolkit is relevant for anyone working in the charity sector - from frontline staff through to experienced digital managers, senior leaders and trustees. Everyone has a role to play in successful digital transformation and can benefit from this free resource. Here are three key digital concepts for every charity to take from the toolkit:   1)  Digital Starts at the Top However exciting your plans are for digital, chances are you won’t be able to execute them without the support and guidance of your leadership team. Louise Macdonald OBE from Young Scot thinks that leaders have a choice: “If you are not online then you are invisible – so you need to ask yourself if that is okay. The good news is the financial barriers to getting online are now pretty low and online tools have made the process easier than ever." One hesitation that leaders may have in embracing digital is a fear of the unknown or fear of failure. Simon Hopkins from Turn2Us believes that leaders need to set their fears aside “You just have to be brave and run the risk of getting a few things wrong – no one ever learned anything by keeping their head down”. Louise Macdonald counsels that ‘You are in space where you can experiment and use technology to get closer to the people that matter to you than ever before – as a leader if you embrace this is will take you and your organisation to exciting new places.’ Advice from charity digital leaders is clear – Just make a start. You may make some mistakes, but the opportunities are too great to ignore. 2)  Step Into The Shoes of Your Audience   Digital can be applied in many ways for charities, from digital marketing to product development and service delivery. Regardless of how you use digital, there are some fundamental building blocks to success and one of these is to truly understand your audience. In the Digital Toolkit, Katie Taylor from the Government Digital Service shared a compelling chapter on personas and user journeys. This might sound like technical jargon initially, but they are essentially about understanding two things: 1)    Who your audience is (Personas) 2)    How they use your service/website (User journey) Here are some further details: Personas A persona is a fictional person who represents someone (or a group of people) who uses your product or service, such as a typical beneficiary, donor, or another key stakeholder. They are a great way to explore the different types of people your charity helps. There are many ways to develop personas. Some personas are very detailed, others are just a brief sketch of each type of user. A word of warning though, using personas can be problematic if they are based on assumptions rather than research. Here are some of the ways that you can build personas: Website & social media data – Google Analytics has a wealth of information that you can segment further. Interview your supporters – This can be on the phone,  1-1 or via focus groups. Speak with your fundraising team, especially those who have face to face contact with their audience. Speak with your service delivery team about the people they encounter. You know you’ve got enough detail when you can use the persona to talk to other people on your team to explain the main differences between the groups of people. User journeys Once you’ve developed personas, you could the map out a user journey.  A user journey map sets out how your audience could interact with your charity and its products and services. They are based on the steps people actually take to do something and can be made after analysing user research or with your users directly. The beauty of user journeys is that you can make them quite granular (e.g. how service users might interact solely with an online service) or more ‘big picture’. The latter might be useful for charities who are supporting people over a period of years, such as with a long-term health condition. Either way, you need to look at their goals, motivations, pain points, what they are feeling and what they want to achieve. Here’s an example User Journey for a charity looking to support a mother with post-natal depression:   Personas and user journeys don’t need to be technical or take up much budget, but they are a vital building block for any digital product, service or marketing plan. 3)  Digital Doesn’t Just Mean Social Media Digital can often be dismissed as ‘just social’ media when in fact it encompasses everything from product delivery to a widespread of digital marketing channels. In the Digital Toolkit Graeme Manuel-Jones shared a fascinating chapter on how Diabetes UK used agile working practices to develop their diabetes risk assessment tool. When it comes to marketing, social media can be a compelling channel for charities. You can find out more about social media for charities in the Charity Social Media Toolkit . As great as social media is, there can be a tendency to overlook other channels that have been around for longer but still deliver results year on year. Here are some of the channels covered in the Digital Toolkit: Email marketing Charities need to be careful with their use of email marketing going forward with the introduction of GDPR, but as a channel, it is likely to remain as one of the most effective tools available. Email open and click-through rates are dropping over time, there are still expected to be 2.9bn email users by 2019, with surveys showing that 72% of people prefer communication via email.  Top tips for email marketing include: Ensure they work well on mobiles Keep them short and to the point – imagery helps Send an action (but only one) in every email Google Adwords It probably hasn't escaped your notice, but Google serves adverts at the top of a search results page. The good news is that charities can apply for an 'Ad grant' which provides you with up to $10,000 per month to spend on advertising. Applying for this grant is relatively straight forward, yet it is surprising that more charities don’t take this up. There are some limitation to using the Ad grant account, but it is still a fabulous opportunity, and for smaller charities can provide a valuable lifeline for fundraising and awareness. You can use the Ad grant account in many different ways such as testing out paid advertising for your charity, driving direct fundraising revenue and raising awareness of your campaigns. Remember that the adverts will only perform as well as your website allows. If you drive visitors to an irrelevant page or one that is hard to navigate, you could see a reduction in traffic and miss opportunities. Search Engine Optimisation SEO (Search Engine Optimisation) is often neglected as a channel in as it is seen too complex or 'something that just happens'. SEO doesn’t have to be complex though and there are many benefits in spending just a little time on this valuable channel. Here are some examples: 1) Potential Donors: A key building block is to ensure that donors can find you when they search for your name. Secondly, save them some time by having an SEO friendly donation page built around a topic. Keywords might include "Dementia research charity donation" 2) Activity fundraising: An individual looking for a charity to support might search for phrases such as "run royal parks half for charity". Such phrases might be very competitive though so you could go for more niche events such as 'Celtman for charity". 3) Service user: Some of your visitors might be direct service users, so it's important that they can find what you do quickly. This might mean searches such as "second-hand bike charity", or they may be seeking out information that you provide through research or support such as "diabetes symptoms" or "cancer forum" 4) Local user: Many charities have a local base so it's important that your pages are linked to local addresses and information. Users might search for "autism support Salisbury" for example. 5) Campaigns: An optimised website can help supporters find your causes. Searches might include "poverty in the UK" or "Youth activities Scotland".  There are many tools out there to help you with boost your search marketing including Google Analytics, Google Search Console and the MOZ Open Site Explorer. A Digital Future The future is digital and you can find more hints and tips on topics including digital strategy and digital skills development in the toolkit . https://www.oscr.org.uk/blog/2017/april/24/three-key-digital-concepts-for-every-charity/ https://www.oscr.org.uk/blog/2017/april/24/three-key-digital-concepts-for-every-charity/ Mon, 24 April 2017 07:19:26 https://www.oscr.org.uk/blog/2017/april/11/mediation-how-can-it-help-your-charity/ People who work or volunteer for charities are highly committed and provide vital work in the community and therefore relationships are always happy and constructive with everyone working together towards shared objectives. True? Unfortunately not! As in any group, people do not always agree or get on easily with each other and in charities difficult situations can easily arise out of the complex relationships between volunteers, staff and boards. The very passion, drive and commitment that draws people into charities can heighten issues and very quickly escalate disagreements into major disputes. This is not only stressful and unpleasant for everyone involved but can lead to the loss of valuable individuals who choose to walk away from the stress and in some cases it can jeopardise the future of the whole charity. Usually an informal discussion can resolve most issues but not everyone has the skills or confidence to handle potentially sensitive and difficult conversations and sometimes the informal approach just isn't enough. This is where mediation can help. It is one of the most successful ways of resolving a dispute or disagreement and is particularly effective in "nipping issues in the bud" before they become too disruptive. It is a flexible process and can be used in a wide variety of situations. It is entirely voluntary and is usually much quicker and more effective than traditional dispute resolution methods such as grievance and complaints procedures. Mediation involves a skilled, independent mediator who supports both parties in finding a solution to the issues they are facing. The mediator helps people work out and express what their issues are and then explore what options might be available for moving forward. The mediator does not take sides or make judgements but will make sure that everyone gets a chance to tell their version of events, hear the other side, work through the issues that are important to them and come to an agreement on how to move forward. Disputes can be very costly not only in terms of the financial impact on the organisation and the time spent trying to resolve the issues, but also in the personal stress of those involved and their colleagues. Mediation is an effective way of minimising these costs but even so, for small charities, cost may be seen as an insurmountable barrier to the use of mediation. Scottish Mediation  can arrange for a professional, accredited mediator to conduct a mediation at a low cost depending upon the size of the charity. Charities with an income of under £50,000 p.a. may be eligible for pro-bono mediation at no cost. For more information or to discuss a specific case contact the Scottish Mediation Helpline on 0131 556 118 and quote "Third Sector". https://www.oscr.org.uk/blog/2017/april/11/mediation-how-can-it-help-your-charity/ https://www.oscr.org.uk/blog/2017/april/11/mediation-how-can-it-help-your-charity/ Tue, 11 April 2017 11:07:21 https://www.oscr.org.uk/blog/2017/march/21/what-s-so-special-about-fundraising-in-scotland/ Fundraising is high on the agenda of the charity sector these days. After a flurry of activity north and south of the Border in the wake of a couple of notorious media stories, a Fundraising Regulator for England and Wales has been established. It has adjudicated on one case and has several others under investigation. Other regulators have weighed in, with the Information Commissioner’s Office fining two large charities for misuse of data, and the Charity Commission joining the others to warn of the regulations coming over the hill in the shape of the General Data Protection Regulations (GDPR) that come into force in May next year. Scotland will have to comply with the GDPR as well as with the Code of Fundraising Practice and any changes to it. So how are we dealing with this environment? Consultation here determined that, while charities welcome regulation as a guarantee of high standards, they wanted a light touch system that would maintain a process of self-regulation, with the addition of an Independent Panel that would promote high standards in fundraising and would adjudicate on any complaints that could not be sorted out by the charity concerned.   What does the Panel look like? Its formal name is the Independent Fundraising Standards and Adjudication Panel for Scotland. Its members act in a voluntary capacity and include fundraisers with experience of large charities, volunteer community fundraising and Higher Education as well as someone with experience of data protection, a charity lawyer, and a member of the Board of the Scottish Council for Voluntary Organisations (SCVO). We are supported by one paid staff member, seconded from the Office of the Scottish Charity Regulator (OSCR). We have observers at our quarterly meetings from the Fundraising Regulator, the Institute of Fundraising, SCVO and OSCR. We will be independent in our decisions, but we’re not isolated and we’re developing Memoranda of Understanding (MOUs) with the other major players, so that we can work with them but maintain our independence.   What’s the problem? Underpinning these light touch arrangements is the belief that, while we mustn’t allow ourselves to be complacent, fundraising in Scotland is in a fairly healthy state. We avoided the sharp dip in trust in charities that happened in England in 2015 and there has been very little concern surfacing about fundraising in the cases that OSCR has been dealing with recently. The Complaints Hub for fundraising ( https://fundraisingcomplaints.scot/ ) was set up in July and there has been a sprinkling of enquiries to it but so far there hasn’t been a complaint that can’t be sorted out by the charity itself. There are various possible reasons for this Scottish effect. Perhaps our fundraising is indeed of a high standard, and that’s what we all want to believe. Perhaps people don’t yet know where to place their concerns, so we need to make sure that our complaints process is well publicised. It’s even been suggested that, although people in Scotland grumble a lot, they don’t complain formally as much as the rest of the UK; yet OSCR is kept busy dealing with other kinds of concerns about charities.   What we don’t have are very large charities based in Scotland. More than half have an income of less than £25,000 and only 19% bring in over £100,000. Many of the problems arise when a charity outsources its fundraising, so that Trustees lose track of what’s being done in their name, and that’s less likely to be the case with small charities. Keeping standards high But whatever the size of the charity, its fundraising needs to be legal, open, honest, and respectful. There’s a plethora of guidelines to help us through the Code of Fundraising Practice and relevant current and future legislation, but it can be daunting for small organisations. One of our challenges will be to make sure that all charities in Scotland are confident about how to raise funds in ways that are acceptable in the present climate and we welcome comments about how this can be done.   I’ve been struck by how this subject introduces its own perspective on how funds circulate through the charity sector. Rather than focus on the charity, you need to foreground the relationship between the donor and the beneficiary, which is mediated by the charity. Some people believe that too many charities have been taking their donors for granted and the emphasis is now on ensuring that the donor’s experience is a good one; in fact, there is a Commission on the Donor Experience that is due to report soon. But donors also want beneficiaries of the charity to flourish and will not want to be treated so circumspectly that charities are hampered from looking after their beneficiaries. Getting that balance right is the challenge. What is good for donors must also be good for beneficiaries. Maintaining trust Good fundraising is fundamental for a healthy charity sector. One case of bad practice can undermine confidence not only in that charity but in the whole charity brand, so we will deal robustly with any serious breach of good fundraising. Our goal is to encourage high standards throughout Scotland, so that charities continue to be trusted to deliver their vision for a better country. The Independent Fundraising Standards & Adjudication Panel for Scotland members were announced in December 2016. You can read more about this   here . We also interviewed Alison and asked some questions about the Scottish fundraising process, the Panel and its next steps. Please hit play below to watch. (This video has subtitles) https://www.oscr.org.uk/blog/2017/march/21/what-s-so-special-about-fundraising-in-scotland/ https://www.oscr.org.uk/blog/2017/march/21/what-s-so-special-about-fundraising-in-scotland/ Tue, 21 March 2017 14:27:22 https://www.oscr.org.uk/blog/2017/february/27/telling-your-story-making-the-trustees-annual-report-work-for-your-charity/ As the Scottish Charity Regulator, we are privileged to get a wee glimpse into the breadth and the depth of work that over 24,000 charities are doing across Scotland and beyond.  Our public surveys always tell us that one the key ways of maintaining and, indeed, increasing public trust and confidence in charities is by making sure the stories of that work reach the public.  Charities come in all shapes and sizes and will have many different ways of communicating with the public.  Making sure that you are clearly explaining to your supporters, beneficiaries and the wider public what you do and what difference it is making can help you build the strong relationships you need to continually develop your organisation.  There is one tool that every charity can use to show how good they are at what they do.  This is the “Trustees’ Annual Report” (TAR) - the narrative part of your annual report and accounts that will help make sense of the numbers.   In our experience, trustees often have one of two reactions preparation of the annual report and accounts, they either: take a lot more care in getting the numbers right than they do in making sure that the story in the TAR is strong and consistent, or they are fearful of trying to engage in the preparation of the TAR because they think that anything to do with the accounts is too complicated for a non-accountant.  But if you think about it, the Trustees’ Annual Report is just about telling the story of what has happened in the charity over the past year and helping readers understand why you have spent the money in the way you have done.  By getting these messages out, you can hook your audience in, show them your passion for what the charity is set up to do, the activities it is delivering and how those activities are really making a difference for your beneficiaries and the wider public.  Laura Anderson speaking at The Gathering 2017 about Trustees' Annual Reports It is very easy to see what makes a good TAR.  It will show how your charity is run and what it does.  It will have clear evidence of its work and the impact that work is having.  It will be written in such a way that allows the audience to understand the work and engage with it.  And it will clearly explain why money has been used in certain ways.  We see a lot of TARs that are not very informative, lack detail and enthusiasm and so, this year, we are going to put more of a spotlight on this area, encouraging charity trustees to improve the quality of their TARs.  This need never be a duplication of effort.  If you are already reporting to funders, or have a good way of producing an annual review, this can all be part of the same process. But don’t ignore your TAR.  Get it right, and you will be getting your fantastic stories out to more people more of the time.  Get it wrong, and you may undermine the trust and confidence that supporters and the wider public have in your charity and the sector as a whole.  Laura presented advice on the Trustees' Annual Report to attendees at The Gathering 2017. You can view a copy of the presentation slides   here . At the same event, we also issued a handout containing TAR top tips which contained some examples of TARs produced by Scottish charities that you can view   here . https://www.oscr.org.uk/blog/2017/february/27/telling-your-story-making-the-trustees-annual-report-work-for-your-charity/ https://www.oscr.org.uk/blog/2017/february/27/telling-your-story-making-the-trustees-annual-report-work-for-your-charity/ Mon, 27 February 2017 07:41:34 https://www.oscr.org.uk/blog/2017/february/24/charities-can-lead-from-the-front-on-living-wage/ I was delighted to welcome OSCR as an accredited Living Wage employer. With a leading agency in Scotland’s Third Sector leading form the front on Living Wage, this marked fresh opportunity to consider the role of Scotland’s charities in the Living Wage employer movement, and why more charities should consider following the lead of OSCR to accredit. With over 700 accredited Living Wage employers in Scotland, and 3000 across the UK, it is clear the Living Wage employer movement is growing. Leading the growth is mainly smaller, private sector firms – accounting for around 60% of all accredited employers. This pattern is testament to the impressive business benefits associated with paying staff enough to afford a decent standard of living, where accredited employers have reported better recruitment and retention of staff, reduced absenteeism, higher morale and better quality of work. The business case is only part of the motivation –employers can enjoy a boost in company reputation too (93% reported this in our recent   Employer survey ).  As third sector organisations have become increasingly professionalised in recent years, the business case for living wage accreditation is more important than ever to the sustainability and growth of our sector. With the movement growing, employers are accrediting faster in Scotland compared to the rest of the UK. Yet almost 20% of the total workforce in Scotland receives less than the real Living Wage. The third sector is not blameless in this picture, as   low pay remains a problem . Of particular concern, the   Low Pay Britain 2016   report shows that across all measures, those most likely to be low paid include women, the young, part-time and temporary employees; groups which often make up larger proportions of a charities staff.  A   recent study   reminded us that poverty remains the number one reason Scotland’s children’s health is among the worse in Europe. With more than 900,000 people living in poverty, and over half of them in working households, something needs to change. The real Living Wage is a tool at our disposal to help address rising levels of in work poverty. To borrow a phrase from the CEO of   one accredited charity ; People who work in charities deserve a Living Wage and should not themselves become a charity case. Against a backdrop of concern over future economic stability and an increasingly competitive environment, I recognise that charities are feeling the pinch.  I am certainly not the first person to highlight that the third sector has a role to play in leading the Living Wage revolution, but many are facing disillusionment around the barriers that hinder the sector to step up to the challenge. Despite aspirations to commit to Living Wage, the reality is often balancing support of Living Wage with the pressure of managing tight budgets. OSCR staff celebrating Living Wage Accreditation at The Gathering 2017 with Lynn Anderson of Poverty Alliance (Pictured far right).  The good news is that we are seeing a culture shift in the grant funding environment – with more funders publicising their status as a Living Wage Friendly Funder. Friendly Funder status offers reassurance that grant makers want to fund posts at Living Wage, and encourage charities to include this in the costings of their bids, but importantly, will not lose out if there are legitimate reasons that Living Wage cannot be paid. Outside of the Friendly Funder scheme, The Scottish Funders Forum reported at our Living Wage Expo 2016 that there is a generally an increased appetite amongst Grant Funders to fund posts at Living Wage – so my advice is to ‘ask and you might receive’. By flying the flag for the living wage, Friendly Funders are opening a door to support smaller organisations to increase staff wages, and this creates an opportunity for these organisations to consider becoming an accredited living wage employer in their own right. For charities that bid for public sector contracts, Living Wage accreditation can be helpful as Living Wage is often considered in tendering. Accreditation shows that charities have not only committed to paying the real Living Wage to their staff now, but have taken the leap to keep their lowest wages in line with the real cost of living. In prioritising an operating model with Living Wage at its core, charities can demonstrate their commitment to fair work principles.  Amongst the general public, charities can arguably be under extra scrutiny in the expectation of responsible business practices; some might expect low pay from the private sector, but not from a value led charity. I’ve attested earlier that private sector firms are leading the Living Wage movement by accounting for the majority of accredited employers, but we still have a long way to go. Industries where low pay is too common often provide services to charities, like cleaning, hospitality and security. By becoming an accredited Living Wage employer, charities can affect change in these sectors in 2 ways. Firstly, on a broad scale; simply by leading from the front on responsible pay, raising awareness about Living Wage in the communities which they operate, charities can demonstrate that Living Wage can and should be a core part of responsible business. Secondly, and in many cases most crucially, accreditation requires any regular third party contract workers to receive the Living Wage too. This means that contracts covering services like cleaning, security, hospitality and many others will have Living Wage on the agenda as a by-product of employers seeking accreditation. This element of the Living Wage commitment has directly improved the lives of workers, and is increasing awareness of the real Living Wage in the service industry. Committing to Living Wage accreditation is an unambiguous statement that workers in all categories are paid enough to live a decent life and are valued. Charities are often in the best position to recognise the strong social case for paying the Living Wage, and I remain optimistic that our sector can become even greater champions of the Living Wage movement. With some of the considerations mentioned above, more charities are taking the leap to join the movement. If you are ready to take the leap to commit to the real Living Wage and enjoy the recognition that accreditation offers, we want to hear from you. If you are not ready, we still want to hear from you – we can offer support to develop a pathway to becoming a Living Wage employer, contact me and we can chat about the journey. I look forward to welcoming you on board. To find out more, contact E:   lynn.anderson@povertyalliance.org.uk T: 0141 353 0440 W:   www.scottishlivingwage.org What is Living Wage accreditation? The Scottish Living Wage Accreditation Initiative was established in April 2014 with the aim of increasing the number of employers in Scotland who are recognised for paying their staff the real Living Wage. The ‘real’ Living Wage is an hourly rate   independently calculated   by the Resolution Foundation according to the basic cost of living in the UK. The rate is announced each November by the Living Wage Foundation and is currently £8.45 for the UK (£9.75 for London) - significantly higher than the government minimum rates. https://www.oscr.org.uk/blog/2017/february/24/charities-can-lead-from-the-front-on-living-wage/ https://www.oscr.org.uk/blog/2017/february/24/charities-can-lead-from-the-front-on-living-wage/ Fri, 24 February 2017 10:32:03 https://www.oscr.org.uk/blog/2017/february/20/social-investment-a-good-investment/ In my last blog I outlined what Social Investment is, and how third sector charities could avail of social investment as perhaps a more suitable alternative to loans from mainstream banks. I also outlined how social investment might be an appropriate replacement for grants. However, there is another role that third sector organisations can have in the world of social investment and that is as 'social investors'. Most social investment funds require investment to distribute back into the third sector. So the more investors they have, the more investment money there is available for charities. Whilst appreciating that a lot of third sector organisations operate a very tight financial existence and as such will never be in a position to be a 'social investor', for those organisations that have got free reserves, social investment is a realistic option. Often the reason given by charities for not investing socially is the belief that it is the fiduciary responsibility of charity directors and trustees to maximise financial return for the charity. There is a presumption that social and ethical investing will produce less of a return than other forms of investment. Perhaps in some cases the returns will be less, but for those organisations that just keep their money in a bank, in the current low interest rate environment, they are likely to receive a greater return on their investment than they get in interest from a bank. Even if organisations do get a lesser financial return for their money by investing socially, charities are not prohibited from doing so provided they are ALSO getting a social return on their investment. Last year a new Charities Act was introduced in England and Wales which states that 'An incorporated charity has, and the charity trustees of an unincorporated charity have, power to make social investments'. In Scotland OSCR's view is that the law does not explicitly prohibit charities from undertaking social investment. Rightly, both OSCR and the Charity Commission do advise charities to seek advice before engaging in social investment activity. Charities have a moral imperative to demonstrate very ethical behaviour about how they use their money and where they put their money. Placing money in a social investment fund creates a virtuous circle of ethical and social finance where the main beneficiaries are organisations and the communities they seek to support. This in turn maximises the overall impact of the sector. This is what the Scottish Community Re: Investment Trust is seeking to do. To use the financial resources of the third sector community to reinvest it back into third sector charities that work in communities all across Scotland. Pauline Hinchion is the Director of the Scottish Community Re: Investment Trust (SCRT)  www.scrt.scot https://www.oscr.org.uk/blog/2017/february/20/social-investment-a-good-investment/ https://www.oscr.org.uk/blog/2017/february/20/social-investment-a-good-investment/ Mon, 20 February 2017 13:54:08 https://www.oscr.org.uk/blog/2016/november/11/is-social-media-in-your-charity-s-dna/ This year, we joined the  call to action   to create a digitally confident third sector in Scotland. The call to action asks charities to explore, adapt, invest and collaborate to make this happen. Fundamentally, using digital more allows you to reach and therefore help more people. You may be thinking, ‘Things already work fine for me’ or, ‘I’m not sure what to do’. Well... have you ever: Struggled to recruit a Trustee? Paid a newspaper for an advert? Spent time and effort knocking on doors and going to events to get people interested in your cause? Had to spend time and money responding to queries via letter? Yes, these are things that many charities do on a regular basis, and when appropriate they should continue to do so.  But what if I told you that using the digital option of social media could make all of these things even easier? Just using the examples above, any messages that you put out on a simple social media account could reach a potentially huge audience and, if you have the budget, you could use a targeted advertising option to make sure your messages reach people in a specific location or who have certain interests. Your social media account can act as a newsletter, recruiter and customer service channel – whatever suits your needs. As easy as it can be for some, I know using social media can be a daunting task for others. There are many factors for this – a lack of IT skills being the biggest one. As Scotland’s charity regulator, we would encourage you to consider having at least one digitally competent Trustee or, if that isn’t an option, work closely with other bodies in the Third Sector who offer support. I post content on our Twitter channel,   @ScotCharityReg , and the channel has been an invaluable tool in helping to meet all of our objectives. It has helped us get messages out in a more cost efficient and timely manner to our key stakeholders. Other members of OSCR staff also have access to the account and they all bring something different with their contributions. We’re not resting on our laurels though - we have some exciting new channels and content to come in the near future (keep an eye on our   ‘Hot Topics’   and sign up to our   Newsletter   to be kept up-to-date). Even having worked in communications for many years, I still look closely at what other organisations do to try and make my messages as effective as they can be, and I recommend that you look at other similar social media accounts to help shape your planning. I would encourage everyone who doesn’t already have a social media account to read the   excellent guides   made for our website by Third Sector Lab. The guides take you through the basics of a social media strategy. There’s advice and guidelines to protec t your organisation, staff and volunteers and you’ll get an overview of why good content creation and maintenance matters. Thanks for reading and I hope to see your charity on social media if it isn’t there already! https://www.oscr.org.uk/blog/2016/november/11/is-social-media-in-your-charity-s-dna/ https://www.oscr.org.uk/blog/2016/november/11/is-social-media-in-your-charity-s-dna/ Fri, 11 November 2016 11:35:22 https://www.oscr.org.uk/blog/2016/september/14/targeting-trust/ On the 27 th   of June we published the findings of our   Scottish Charity Surveys , which included the Scottish public’s score for trust in charities. The next day the Charity Commission for England and Wales published their  public trust and confidence research results , and last week saw the launch of the  Charity Commission for Northern Ireland’s results . The headline figures for trust are interesting, but there’s a lot more we can learn from the research to help us understand the sector and shape our approach to regulating charities. Public trust and confidence in charities Overall, Scottish trust in charities remains strong, with 64% of the public scoring trust in charities six or more out of ten, compared to 68% in 2014. It was lower in 2011 at 61%. We have seen a move away from those scoring trust at the very highest levels, resulting in a decrease in the mean from 6.35 in 2014 to 6.08 in 2016. In England and Wales, after a number of years of very stable figures, there has been a drop in trust in charities, from a mean score of 6.7 in 2014 to 5.7 in 2016. In Northern Ireland, the very first round of scores for public trust resulted in a sound starting point of 6.2.  Changing environment As the regulator for 24,000 charities we’re aware of the huge contribution these organisations make to society and the economy, but we’re also aware that the environment for charities has been changing. As the economic climate has changed, the funding environment has also changed and charities have developed different relationships with their funders. It was not a surprise to learn that funding remains the most important issue facing 47% of charities.  Where funding is such an issue, it is also not a surprise that charities sometimes look to public donations to meet the shortfall with new or increased fundraising, or diversify their funding streams. And in some cases, it is these pressures and activities that have resulted in the sort of press and media scrutiny we have seen over the last year or so. The Challenge Our vision is for charities you can trust and that provide public benefit, so it is essential that we understand the factors that influence trust so we can prioritise our regulatory actions and reflect public concerns. We know that public trust is important for donations (81% of the Scottish public say so), but the public also need confidence to believe in charities (and the good they do) to enable their role in society. This is a challenge, because in some cases, the modern charity is quite different from the more traditional view of charity. To a certain extent, the public’s view of what is charitable is being tested. We can’t address this challenge without this sort of research. Public trust and regulation Luckily, the survey research indicates that there is a link between trust and regulation. A greater proportion of the public score trust highly if they know about OSCR - we found 75% scored trust six or more out of ten if they were aware of OSCR, compared to 61% if they were unaware. We also found higher trust scores for those that have the highest levels of interest in charities, which hopefully indicates this increased knowledge is a good thing (and not something that undermines trust). We also know that charity regulation is something that the public feel is important - 84% of the Scottish public say so, and the Northern Irish results declare this even more strongly, with 94% agreeing that it is important that charities are properly regulated. This sort of research also provides valuable insight into the factors that would increase trust. Our survey results showed that knowing how much of the donation goes to the cause, and seeing evidence of what has been achieved were really key to increasing trust. And despite different questions, similar themes were found in England, Wales and Northern Ireland, with donations being used properly and having a positive impact being important drivers.  Shaping regulation We’ve used the research to help prioritise our activities so we can take action to target specific areas that might undermine public trust and confidence. We call this new risk-based way of working   targeted regulation . It is a move away from looking at all charities in the same way and a move towards a more proactive and intelligence-led way of working where we look at particular issues. At the heart of this is a commitment to the themes that are the drivers of trust – accountability and transparency. Working with a risk framework targets our efforts in two main areas (1) the protection of charitable assets and beneficiaries, and (2) the protection/integrity of charitable status. For example, our work with charities that fail to meet their reporting requirements helps to ensure that donations are publicly and transparently accounted for. What next So where does this leave us, and other regulators keen to safeguard public trust and confidence in charities? Well, firstly, we need to continue to use this information to learn about public concerns and the issues affecting the sector so we can respond in the right way. Secondly, we need to build on the progress made so far. Between the different charity regulators there are some areas of really strong consensus about the drivers of trust, and we can continue to work together to strengthen our knowledge and use this knowledge to develop our approach. Finally, we need to be realistic about what will, and will not be possible. Regulation alone cannot guarantee public trust and confidence. Trust is influenced by a wide range of external factors, many of which we have no control over. But we can work with the sector to advocate the right sort of accountability and transparency; we can promote good governance, and we can develop great guidance that helps embed skills and support the sector to do what it needs to do. More Information Links to surveys News item -   Surveys show strong support for charities in Scotland Stakeholder Surveys 2016 – Charities Stakeholder Surveys 2016 – Public Stakeholder Surveys 2016 infographic   News item -   Northern Ireland’s charities amongst the most trusted in the UK, according to new research News item -   Public trust in charities has fallen, reports Charity Commission https://www.oscr.org.uk/blog/2016/september/14/targeting-trust/ https://www.oscr.org.uk/blog/2016/september/14/targeting-trust/ Wed, 14 September 2016 11:04:23 https://www.oscr.org.uk/blog/2016/august/24/targeted-regulation-five-months-on/ On the 15 th   of March of this year, we published a ‘hot topic’   Things are Changing   which outlined the key changes we were bringing in on the 1 st   of April.  These included a change to our annual return form, the introduction of a notifiable events regime and the publishing on our register of annual reports and accounts of all charities with an income of over £25,000 and all SCIOs.  The first few months of running with these changes have brought little drama.  It has all moved relatively smoothly and we are happy that the changes have been the right ones.  Now that they have been in place for over five months, it is probably a good time to update you on a couple of things. Publishing annual reports and accounts If you have had look at some of the published accounts, you will see that bits of them have been redacted.  We have had some queries about why that is necessary when they are public documents.  I agree that this may appear a bit strange, but because of our particular legislation, we are not able to publish personal information such as signatures, because of data protection issues.  We are looking at the possibility of legislative change in order to make it easier for us to publish the documents automatically, but until that time comes we will continue to redact.  We know that this may be a bit unsatisfactory both for ourselves and for the viewers of our register.  Because of this, we have looked for different ways of making the reports and accounts available through the register in their original form.  The easiest way of doing this where a charity has them on their own web-site is by including a link to the accounts.  If you haven’t yet supplied us with a link, but you have one … then please do. Notifiable events We are very pleased with the way this has been working.  We haven’t received huge numbers of reports, but where they have come in, we can see that the trustees are generally taking the correct steps to sort things out wherever possible. There have been some inquiries about the whereabouts of the  guidance  and some very good comments about how the guidance might be sharpened up.  We have decided to wait a few more months before refreshing the guidance, as it is still early days.  But we are very interested to hear these comments, and therefore if something is not clear, or you feel some area of the guidance could be improved, then please let us know, as that will help us ensure that the next version of the guidance is as useful as possible. https://www.oscr.org.uk/blog/2016/august/24/targeted-regulation-five-months-on/ https://www.oscr.org.uk/blog/2016/august/24/targeted-regulation-five-months-on/ Wed, 24 August 2016 09:38:04 https://www.oscr.org.uk/blog/2016/august/10/brexit-are-you-a-meerkat-or-an-ostrich/ Brexit: are you a meerkat or an ostrich?         The chain of events that unfolded, often very rapidly, in the wake of the Brexit referendum on 23 June (yes, it was only seven weeks ago) has generated very challenging times for those entrusted with running charities.  One of the essential roles for a charity’s board is to develop and keep under review a charity’s strategy, and then to keep the organisation on track.  It can however be extremely challenging to take a strategic perspective in the face of day-to-day operational pressures and in a climate of considerable uncertainty.  As a trustee, are you looking out to see what is on the horizon, or are you hiding your head in the sand?  As was set out in our recently updated   Guidance and Good Practice for Charity Trustees  acting with care and involves: making sure the charity is run properly having a clear, up-to-date picture of how the charity is doing financially understanding and assessing potential risks, and having procedures in place to reduce them Although it is unlikely that a charity is immediately thrown into jeopardy by the referendum result, it is clear that in the medium to long term, the consequences of exiting the EU will be far-reaching.  There will be challenges (and of course opportunities) for charities.  A wise board will begin to examine these quickly to help get ahead of any risks that emerge. The areas of change include: political   – policies and priorities are already shifting economic   – the fiscal impact and the knock-on effect on public and family finances will take some time to work out in full legal   – many of the parameters within which charities currently operate will change; we are however likely to have some warning about these as the specifics emerge organisational   – if you are an employer, you should consider any potential impact on staff and whether your policies and practices still apply technological   – OK, Brexit may not have had much direct impact on this, but why waste a good crisis? We now live in a digital world and more and more charities are adjusting their operations to take full advantage the possibilities here. In these uncertain times, you may wish to review your strategies to ensure that these are still ’fit for purpose’ and that your business plans remain achievable in light of the uncertainties.  Scenario planning might help you to gain perspective on critical issues facing your charity and could highlight the need to take strategic decisions about capital investments and budgeting, particularly in relation to reserves and contingencies.  Charity boards need to embody and transmit their vital mission – they also need to keep a watchful eye on the bottom line. It may be wise to engage with your supporters, funders and beneficiaries so that your discussions and decisions are properly informed.  And you will certainly want to ensure that you seek appropriate expert advice and assistance if you consider that major changes are necessary.  So I hope you agree that in the weeks and months ahead, you will better serve your fellow trustees, any staff you have, your beneficiaries and your communities as a meerkat rather than as an ostrich!    David Robb CEO, OSCR Further guidance and assistance: Brexit, what could it mean for the third sector?   SCVO blog https://scvo.org.uk/post/2016/07/06/brexit-what-could-it-mean-for-the-third-sector   Brexit Briefing: what charities can do?    Directory for Social Change https://www.dsc.org.uk/brexit-charities-can/ Charity governance, finance and resilience: 15 questions trustees should ask , CCEW https://www.gov.uk/government/publications/charity-trustee-meetings-15-questions-you-should-ask/charity-trustee-meetings-15-questions-you-should-ask https://www.oscr.org.uk/blog/2016/august/10/brexit-are-you-a-meerkat-or-an-ostrich/ https://www.oscr.org.uk/blog/2016/august/10/brexit-are-you-a-meerkat-or-an-ostrich/ Wed, 10 August 2016 14:22:15 https://www.oscr.org.uk/blog/2016/july/13/how-to-prepare-for-appointing-a-charity-investment-manager/ In the last few months, I’ve been asked more than once about the kind of process a charity should follow, when getting ready to appoint an investment manager.  What kinds of questions are worth asking?  If your charity is in the position of appointing an investment manager for the first time, or is perhaps getting ready to review its investment manager as part of a due diligence process, here are some practical  pointers on things you might like to consider.  The legal background here is sections 93 and 94 of the   Charities and Trustee Investment (Scotland) Act 2005 , which sets out the need for suitability and diversification to be taken into account.    1          Prepare an investment policy statement Once your board has agreed on the investment criteria, this can be reflected in an investment policy statement which, although not a mandatory part of Scots law, is certainly good practice.  What to include in an investment policy statement is worth an article in itself, but broadly speaking, you want your investment policy statement to answer these questions : what’s the goal for the funds being invested?  Is it income, growth or a combination? What investment powers do you have?  What does your governing document say on this? What’s the time horizon in which you might need access to the funds? What currency would you like to operate in?  Is it sterling? What’s your approach to risk : can you cope with short term fluctuations in investment values? Are any ethical criteria to apply?  How will performance be assessed – will you set a benchmark? What’s your preference for frequency and scope of reporting; and how often do you want to meet your investment manager?   2          Invitations to tender : your long list Unless you are a public body, there is no formal procurement process to follow.  How you go about selecting an investment manager is up to you. One option is to send your investment policy statement with a covering letter inviting tenders to a range of investment managers who are active in the charities sector.  A deadline for responses four to six weeks ahead is quite normal.  Some charities work with their accountant or other professional advisers to identify this long list.  In this covering letter, charities often indicate their overall timeline in terms of when a shortlist will be decided, the date for presentations, and the likely date when the new investment manager will be appointed.  You can also set expectations about the length of presentation you’d prefer, for example ten minutes, allowing around half an hour for Q&A.  You’ll also want to ask some questions of the investment manager, which might include : what’s their experience in the charities sector? What’s their investment style – will it be through pooled funds or directly held shares? Can they provide references from similar charity clients? What’s their historic performance data? What’s their proposed investment solution for you? What’s their fee?  Some charge a flat fee, others may apply different charges for different types of work.  You might want to ask for this to be explicitly broken down to provide the total expense ratio (TER) which will bring out any hidden third party charges.   3          Your short list  From the written responses you receive, a short list is compiled, typically involving three to five investment A date is set for presentations, and it’s usual for the investment firms to come to you.    4          The presentations and timings Some charities move directly to a short list for presentations.  It’s quite common for 45 minutes to be allocated for each meeting.  If your appointments start on the hour, this gives you some time in-between to reflect on what you’ve heard and get ready for the next meeting.  Each meeting combines a presentation and Q&A.  You can set expectations in advance on any time limit you want to apply to the presentation element.  It can be a fairly exhausting day or half-day of meetings to host, and the depth of the questioning will depend on the investment expertise you have available to you, either on the board or via one of your advisers.  Some charities co-opt external members onto their Finance Committee, to give them access to investment expertise, albeit such external members are not formally trustees.  As for the decision, it tends to be a combination of how well the investment firm has answered all of your questions, as well as whether you have formed an impression that you would like to work with the team you’ve met at the pitch : relationships and rapport matter. For more information on investment policy statements, the Charity Finance Group has   guidance   which is worth a look.    The information in this blog or any responses to comments should not be regarded as financial advice.  Laws and tax rules may change in future.  The information here is based on our understanding in May 2016. Standard Life Wealth is not responsible for the content of external websites. https://www.oscr.org.uk/blog/2016/july/13/how-to-prepare-for-appointing-a-charity-investment-manager/ https://www.oscr.org.uk/blog/2016/july/13/how-to-prepare-for-appointing-a-charity-investment-manager/ Wed, 13 July 2016 14:11:09 https://www.oscr.org.uk/blog/2016/july/07/fundraising-regulation-bringing-in-the-changes/ Fundraising regulation in Scotland is changing. In December last year, the Fundraising Working Group was charged with defining a system that would: command confidence in charity fundraising; inspire public trust and actively promote good fundraising. It did this by refining the three options that were described in my previous fundraising  blog , consulting widely with the charity sector and the public, using this input to propose a new way of working.   There was an enthusiastic participation in the consultation, and the results were generally pretty clear.  The majority of people who got involved wanted to build on the strengths of the systems that we already have in place in Scotland.  They wanted to ensure that there was a strong focus on improving standards across the sector, and they wanted OSCR to play a slightly enhanced role as the back-stop to this self-regulation.  But what will this mean in practice? Well, from the 7 July 2016 there will be a new regime in place.  A new fundraising hub is being set up.  It will have a dedicated phone line (0808 164 2520),   website   and email ( scottishfundraisingcomplaints@scvo.org.uk ). The hub will be a source of information and advice. In terms of the complaint process, the first place to go with any complaint will continue to be the charity itself.  Where a charity is of a sufficient size, there should be a two tier complaints structure in place. So, if an individual feels that a complaint has not been handled well, it can be referred up to the trustees.   If the individual still remains dissatisfied, the complaint will be referred to an independent panel, made up of representatives from the public, donors, charities, and fundraisers, with OSCR and the Scottish government as observers.  The panel will be in place by autumn of this year.  Where the panel finds an issue that needs OSCR attention, it will be passed to us to be dealt with under our   Inquiry Policy .  Charities and the public are unlikely to see big changes come the 7 July. However the shift in emphasis is significant.  By looking at prevention, investing in complaints handling, and including all charities within its remit, there is the possibility of really tackling the problems of bad fundraising practice at their very roots. https://www.oscr.org.uk/blog/2016/july/07/fundraising-regulation-bringing-in-the-changes/ https://www.oscr.org.uk/blog/2016/july/07/fundraising-regulation-bringing-in-the-changes/ Thu, 07 July 2016 11:11:05 https://www.oscr.org.uk/blog/2016/june/27/remember-the-ombudsman/ Earlier this year we were in Glasgow where we once again had a stand at The Gathering - the invaluable annual event organised by the Scottish Council for Voluntary Organisations (SCVO). It was there I met Nicola McBain from the Scottish Charity Regulator (OSCR) and attended its informative workshop. If you read  Nicola's blog  last August, you'll know OSCR had heard many concerns from Scottish charities about problems they'd had with their banks. And you may also know that Nicola and her colleagues have done a lot more work to help address the issues since. So what's that got to do with the ombudsman? Did you know the charity you work for may be able to turn to the Financial Ombudsman Service, free of charge, if there are problems with your bank that you can't resolve yourself? We were set up by Parliament to help resolve disputes between financial services businesses and their customers. If you can't reach an agreement, we may be able to step in. Being completely independent and impartial, we'll listen carefully to both sides, look at all the facts and then decide what's fair. If a bank hasn't treated your charity fairly, we can instruct it with what to do to put matters right. What's the best way for charities to approach the ombudsman? Well, firstly, your organisation has to be eligible to the use the ombudsman service. Most people who come to us are private individuals but we can also look at complaints from registered charities whose annual income is below £1 million. If you're having a problem that isn't being resolved - complain. It's much better if the business can resolve matters for you itself and they must take complaints seriously. But if that doesn't happen,  get in touch with us  and we'll take it from there. And don't forget, we're here for the people your charity helps too. https://www.oscr.org.uk/blog/2016/june/27/remember-the-ombudsman/ https://www.oscr.org.uk/blog/2016/june/27/remember-the-ombudsman/ Mon, 27 June 2016 15:34:58 https://www.oscr.org.uk/blog/2016/may/25/measuring-your-risk-maturity-specifically-for-charities/ The  Charities Sector Interest Group at the Institute of Risk Management  has released a new risk maturity framework and accompanying guide: 'Getting Better' Flyer - March 2016 Charities SIG Risk Maturity Framework This simple framework has been designed to help charities develop a plan for improving your risk management. It sets out four levels of risk maturity (conscious, developing, proficient and expert) and summarises what this means in terms of knowledge, skills and behaviours. If you've just got started then you might class yourself as 'conscious', although in some areas you might well be 'developing' or even 'proficient'. But think about whether you actually need to be 'expert' - most of us probably don't. It's a question of matching your risk capabilities to your likely needs. But if you  are  'conscious' in all aspects of risk management, then you'll probably want to make some improvements. If you don't, you're likely to find that objectives and targets are missed or not met in full, simply because senior management are diverted to deal with unplanned events. Our short guide explains how you can use the framework to assess your charity's risk capability and identify where you need to improve. This will help you focus your limited resources on developing the right areas - why insist, for example, that all staff attend risk training if actually the problem is just that you haven't effectively communicated and promoted your risk policy? The Chair of the group is Alyson Pepperill CFIRM ACII, Chartered Insurance Institute Risk Manager. https://www.oscr.org.uk/blog/2016/may/25/measuring-your-risk-maturity-specifically-for-charities/ https://www.oscr.org.uk/blog/2016/may/25/measuring-your-risk-maturity-specifically-for-charities/ Wed, 25 May 2016 10:39:59 https://www.oscr.org.uk/blog/2016/may/09/all-change-for-charity-accounts-4-volunteers-donations-from-trustees-and-trustee-expenses/ Today I want to cover three of the areas from the new SORPs which are causing my clients some issues; Volunteers, Donations from Trustees and Trustee expenses. Volunteers In developing the new SORPs there had been considerable discussion about whether we should place a value on volunteer time - in the same way that we account for donated goods or services received by charities. As a charity auditor, I'm pleased that they decided not to require charities to recognise the value of volunteers by way of an adjustment to the figures (how would you audit that?!); indeed the SORPs specifically state that charities must not account for the contribution of volunteers as income. However, the new rules do require additional disclosures about the contribution by volunteers, where it is significant. In the Trustees' Annual Report charities must explain the contribution made by volunteers, which should help the reader understand the nature and scale of the activities undertaken. The SORPs state that this may include: an explanation of the activities that volunteers support or help to provide; and  details of the contribution in terms of volunteer hours or staff equivalents. In the notes to the accounts, charities must also include a description of the role played by general volunteers and provide an indication of the nature of their contribution. Again, the example accounts prepared under the new SORPs published by OSCR and the Charity Commission are useful in illustrating how the regulators see these requirements being fulfilled. The examples can be accessed  via this link. Donations by Trustees The FRS102 SORP has introduced a new requirement for Charities to disclose the total amount of donations received without conditions from trustees and this is causing a number of charities to wonder how they can comply. One possible solution that we are suggesting to clients is to ask individual trustees to keep a personal record, and then ask them to complete a declaration at the year end to state the total donations in the year (some charities already do such year-end returns asking trustees to disclose any related party transactions or confirm that there have been none). Trustee Expenses Finally today, the new requirement in both SORPs to disclose the total amount of expenses waived by trustees; so if your charity has a policy to reimburse expenses to trustees you will now need to disclose the total amount not claimed and by how many trustees, as well as how much was claimed! Some of my clients have changed their policies such that expenses are not routinely reimbursed, but only in exceptional circumstances with the permission of the Chair (for example); meaning that trustees not claiming expenses were not entitled to them and therefore didn't wave them! Others are considering asking trustees to do a year end return of expenses that they could have claimed but didn't! Jenny Simpson is a partner at Wylie & Bisset LLP and sits on the UK Charity SORP Committee. The blog originally appeared on SCVO's website in March 2016 and has been reproduced with both Jenny and SCVO's permission. https://www.oscr.org.uk/blog/2016/may/09/all-change-for-charity-accounts-4-volunteers-donations-from-trustees-and-trustee-expenses/ https://www.oscr.org.uk/blog/2016/may/09/all-change-for-charity-accounts-4-volunteers-donations-from-trustees-and-trustee-expenses/ Mon, 09 May 2016 15:25:00 https://www.oscr.org.uk/blog/2016/april/20/all-change-for-charity-accounts-3-new-requirements-relating-to-key-management-personnel/ In my third blog about the new charity accounting rules, I want to cover the requirements in relation to Key Management Personnel remuneration. The glossary of the FRS102 SORP tells us that ' Key management personnel is a term used by FRS 102 for those persons having authority and responsibility for planning, directing and controlling the activities of the charity, directly or indirectly, including any director (whether executive or otherwise) of the charity. This definition includes trustees and those members of staff who are the senior management personnel to whom the trustees have delegated significant authority or responsibility in the day-to-day running of the charity.' Both the FRSSE SORP and the FRS102 SORP require larger charities (i.e. those subject to statutory audit) to include details in the Trustees' Annual Report of the arrangements for setting the pay and remuneration of the charity's key management personnel and any benchmarks, parameters or criteria used in setting their pay. In addition to this, charities reporting under the FRS102 SORP must disclose in the notes to the accounts the total amount of any employee benefits received by trustees and key management personnel for their services to the charity. Employee benefits are defined as: ' all forms of consideration paid by a charity in exchange for the service rendered by employees, including trustees, and include all remuneration, salary, benefits, profit-sharing and bonuses, employer's pension contributions and any termination payments made. For employers with employee members of a defined benefit pension scheme, employee benefits include the change in the net defined benefit liability arising from employee service rendered during the reporting period and the cost of plan introductions, benefit changes, curtailments and settlements.'  - so not necessarily straightforward to calculate if you have a defined benefit (final salary) pension scheme! Charities will need to review the definition of Key Management Personnel against their own structure to decide who should be included within this. For some charities it is likely to include a number of employees but for smaller charities it may just be the charity's manager / chief exec. Both OSCR and the Charity Commission have published example accounts prepared under the new SORPs  which you can access here . These are really helpful in showing you the kind of detail the regulators are expecting in the disclosures. It's interesting to note that while the SORP says charities may wish to disclose the employee benefits paid to the chief executive or the highest paid employee or even to key management personnel on an individual basis, the regulators haven't chosen to do this in their examples. In an environment where remuneration of charity employees, and in particular chief executives, is creating so many headlines, these new requirements are likely to fuel the fire rather than extinguish the flames! Next time, I'll cover the new rules in relation to Volunteers, Donations made by Trustees and Trustee expenses. Jenny Simpson is a partner at Wylie & Bisset LLP and sits on the UK Charity SORP Committee. The blog originally appeared on SCVO's website in March 2016 and has been reproduced with both Jenny and SCVO's permission. https://www.oscr.org.uk/blog/2016/april/20/all-change-for-charity-accounts-3-new-requirements-relating-to-key-management-personnel/ https://www.oscr.org.uk/blog/2016/april/20/all-change-for-charity-accounts-3-new-requirements-relating-to-key-management-personnel/ Wed, 20 April 2016 09:12:14 https://www.oscr.org.uk/blog/2016/april/06/all-change-for-charity-accounts-2-whats-new-in-the-trustees-report/ Under both the FRSSE SORP and the FRS102 SORP, larger charities (those subject to statutory audit) will need to give more detail in their Trustees' Annual Report. The rules refer to giving a 'balanced review' and in many instances encourages charities to talk about their failures as well as their successes. This blog will consider some of the more difficult or contentious new requirements. Risk statement Under the old rules, Trustees had to confirm in their report that they had considered the main risks faced by the charity, and had taken appropriate action to mitigate these. This requirement has been expanded such that charities must now give details about the risks. The new SORPs require the report to include 'a description of the principal risks and uncertainties facing the charity and its subsidiary undertakings, as identified by the charity trustees, together with a summary of their plans and strategies for managing those risks'. In a world where charities increasingly have to compete against other charities and commercial businesses for funding, Trustees will want to consider carefully what they include in their report to comply with this requirement. Going Concern Both SORPs encourage all charities (not just larger ones) to explain any uncertainties surrounding the charity's ability to continue as a going concern in the Trustees' Annual Report. This is another area which will require careful consideration of proposed wording by the Board. Other matters The Trustees' Report will also need to give additional details about a charity's policies and objectives in the following areas (if they are material), as well as how they fit in with the achievement of the charity's aims and objectives: Social investment Grant making Holding investments Usually the wording for the Trustees' report is one of the last things we receive from clients, sometimes only a matter of ours before the accounts need to be sent out! We are advising clients to start work on the Trustees' report now, and to ensure that the Board have had plenty of time to consider it in advance of the proposed approval of accounts. Next time, I'll give more details about the new requirements for disclosures about Key Management Personnel remuneration in both Trustees' report and the notes to the accounts. Jenny Simpson is a partner at Wylie & Bisset LLP and sits on the UK Charity SORP Committee. The blog originally appeared on SCVO's website in February 2016 and has been reproduced with both Jenny & SCVO's permission. https://www.oscr.org.uk/blog/2016/april/06/all-change-for-charity-accounts-2-whats-new-in-the-trustees-report/ https://www.oscr.org.uk/blog/2016/april/06/all-change-for-charity-accounts-2-whats-new-in-the-trustees-report/ Wed, 06 April 2016 14:41:21 https://www.oscr.org.uk/blog/2016/march/21/all-change-for-charity-accounts-a-reminder-of-the-who-has-to-do-what-rules/ For accounting periods commencing on or after 1st January 2015, charities preparing their accounts under the accruals basis must do so using a new SORP (Statement of Recommended Practice). This will change the layout and content of both the Trustees' report and Financial Statements, and will necessitate restatement of the previous year's accounts to give comparative figures for the current year. Charities with a 31 December year end are among the first to apply the new rules for their 2015 accounts. In this first of a series of blogs about the changes, I give a reminder of the new rules: Charities who meet the definition of a small company under Companies legislation (two out of three of the following, for this year and last year; income not exceeding £6.5 million, assets not exceeding £3.26 million and no more than 50 employees) can prepare their accounts under the FRSSE SORP (Financial Reporting Standard for Small Entities) however, the FRSSE SORP has now been withdrawn and will therefore only apply to one year's accounts. Small charities can instead choose to use the alternate FRS 102 SORP (Financial Reporting Standard 102), something that most of our small charity clients appear to be deciding to do. This will have the benefit that the accounts will only change once. If charities choose to use the FRSSE SORP then they'll need to restate their accounts again the following year. Charities who are members of a group of companies must also check that the whole group is small to be able to use the FRSSE SORP. Non-small charities must apply the FRS102 SORP. In addition to deciding which SORP they may / must apply charities also need to be aware to be aware that both SORPs contain additional requirements from 'larger' charities - defined as those subject to a statutory audit (incoming resources of more than £500,000 in Scotland). Next time I'll give more details about the changes to the content of the Trustees' report. Jenny Simpson is a partner at Wylie & Bisset LLP and sits on the UK Charity SORP Committee. The blog originally appeared on SCVO's website in February 2016 and has been reproduced with both Jenny & SCVO's permission. https://www.oscr.org.uk/blog/2016/march/21/all-change-for-charity-accounts-a-reminder-of-the-who-has-to-do-what-rules/ https://www.oscr.org.uk/blog/2016/march/21/all-change-for-charity-accounts-a-reminder-of-the-who-has-to-do-what-rules/ Mon, 21 March 2016 14:02:28 https://www.oscr.org.uk/blog/2016/march/15/things-are-changing/ From the 1st April, charities are going to start to seeing some changes. We are going to be a more "targeted" regulator and are starting to nuance our systems and approaches in order to better aim our efforts and energies at the charities and groups of charities that are likely to pose the highest risk to public trust and confidence in the sector. None of these changes should be particularly tricky or complicated. And from today onwards we will be releasing more detailed information as to how these changes will affect you. At the heart of all this work is the risk framework that we have developed. This framework identifies the risks we are going to concentrate on (and gives some indication of their relative importance to us at this time). It will change and develop over time, as some risks fall off the framework, and others come to prominence. What are the key changes that charities will see? Notifiable Events From the 1st of April, we will be asking charities to report any "notifiable events" to us. We want to understand the issues that charities are facing and to offer our support, if it is necessary. We don't want to know about every event, only those that threaten to have a significant impact on the charity or its assets. By doing this we are hoping to contribute to the good governance of a charity. It is not meant to be a stick to beat a charity up with. Our annual return form This will change. There won't be an increase in questions for anyone. Indeed, for may charities there will be less. However, the nature of the questions will change, with them being much more about issues of governance. This may feel strange for charities at the start, but our feeling is that most charity trustees should have the information they need to answer these questions at their fingertips. Publishing reports and accounts Transparency is a great way of inspiring confidence. From the 1st of April, we will be starting to publish the reports and accounts of charities with an income of over £25,000 and all SCIOs. Charities won't have to do any more, but it is actually an opportunity to get more information out there about their work and the impact it is having. In addition, during the year, we are going to start to concentrate more on  Trustees' Annual Reports . What the public really want to know about charities is what they are doing...what impact they are having. While we have been delighted by the fact that the financial component of the accounts coming to us have improved significantly over the 10 year period, there is still work to be done to try to develop reports that really show the public the effect their money and voluntary time is having. We will be working with the sector (including developing new guidance) to help increase the quality of the narrative reporting of charities. This week: We are going to concentrate on a different area every day: Tuesday:  Notifiable events Wednesday:  Annual return Thursday:  Risk Framework Friday:  Publishing reports and accounts https://www.oscr.org.uk/blog/2016/march/15/things-are-changing/ https://www.oscr.org.uk/blog/2016/march/15/things-are-changing/ Tue, 15 March 2016 08:07:35 https://www.oscr.org.uk/blog/2016/february/16/fundraising-regulation-in-scotland-your-chance-to-comment/ Charity fundraising has been under a lot of public and media scrutiny. There is a feeling that something needs to change in terms of how charity fundraising is regulated. However, what the change might be has yet to be decided. While change to regulation of charity fundraising could be a very good thing, we need to ensure that the changes work both for the public, and for charities themselves. And while a reboot of fundraising regulation might be an important step, so would a change in the culture of fundraising and an increase in transparency overall. The review of fundraising in Scotland and the fundraising summit hosted by SCVO in November started a process of reflection and discussion around potential options for Scotland. Since the summit, the Scottish Fundraising Working Group has developed these three potential options for consultation. Option 1:  Here, fundraising regulation would follow the model defined in  the Etherington Review . There would be a UK-wide Regulator which would act as an intermediary, taking the role previously done by the Fundraising Standards Board (which is being disbanded). Fundraising in Scotland would become part of this UK-wide structure. Option 2:  In model two, the system would look similar to the UK model. However, an independent Scottish Fundraising Regulator would be created which would play the regulatory role. Option 3:  This option would look very different. There would be no new regulator. Regulation would rely on a strengthening of complaints procedures within charities themselves, and an enhanced role for OSCR. The working group now wants to hear views from others and a consultation has been launched. The group is looking for as many people as possible to get involved. Maybe you will have a chance to join the working group at  the Gathering  on Thursday 18th February in the SECC Glasgow. However, that is not the only way to get involved. You can also fill in  the survey  or send a longer response to  research@scvo.org.uk . The background document giving more details on the options can be found on the survey site using the  link above . And so, it is over to you. The consultation is open until the 31st of March this year. If you have a moment, please let the working group know what you think. https://www.oscr.org.uk/blog/2016/february/16/fundraising-regulation-in-scotland-your-chance-to-comment/ https://www.oscr.org.uk/blog/2016/february/16/fundraising-regulation-in-scotland-your-chance-to-comment/ Tue, 16 February 2016 13:29:34 https://www.oscr.org.uk/blog/2016/february/03/how-the-scottish-charity-regulator-has-made-it-easy-to-highlight-your-charitable-status/ If you're running a charity, then you'll be aware of the legal requirement to promote your charitable status to the public. This is set out in  section 15 of the Charities and Trustee Investment (Scotland) Act 2005 . We've produced  guidance on what's required for easy reference . Aside from the legal requirement, it's good practice and good sense to show the public that you're a charity. It demonstrates transparency, encourages goodwill and, hopefully, encourages more donations. At the Scottish Charity Regulator we recently set up a  charity registration logo  that you can download free of charge and use on your charity's website and email signatures. What's it for?   It's an easy way to show the public that your organisation is a charity registered in Scotland. It's bright and bold, and we hope that as many charities as possible use it to highlight individual entries in the Scottish Charity Register. How should it be used?   If your organisation is a charity, you can   download the artwork   free of charge from our website. Ideally, you should link it through to your charity's entry in the Register - you can find it easily using our   Register Search . Why is it needed?  Charity law says that you have to promote your charitable status on certain documents. We think it's a good idea to be as transparent as possible, and show the public clearly, with a link to further information about your charity. Can it be used on printed material?   No, the logo is intended for electronic use only and shouldn't be reproduced on print or display material. You can still highlight your charitable status on these items by printing your charity number   as set out in our guidance . Do you provide technical support?   We don't, although the artwork is available in the most popular formats and it should be very easy for your website designer to download it and set up the link. If you do have a problem with the download,   you can contact us here . Hopefully you will find this useful. And as well as using the logo on your own site and emails, share it far and wide.  We're keen to see as many charities as possible taking this up. It's a quick, simple (and of course free!) means of showing the public that you're a charity - and proud of it! https://www.oscr.org.uk/blog/2016/february/03/how-the-scottish-charity-regulator-has-made-it-easy-to-highlight-your-charitable-status/ https://www.oscr.org.uk/blog/2016/february/03/how-the-scottish-charity-regulator-has-made-it-easy-to-highlight-your-charitable-status/ Wed, 03 February 2016 14:46:21 https://www.oscr.org.uk/blog/2015/august/12/banking-on-oscrs-help/ You may have seen the recent article in Third Force News - 'High street banks failing Scottish charities'. Maybe you've experienced the issues highlighted in the piece. They certainly came as no surprise to us. Recently, at our events and through emails, we've seen an increasing number of concerns raised with us about the service that charities receive from banks. Identifying the problems During this year we've looked into these concerns, and from speaking to charities, banks, and sector bodies we've identified five key 'banking' issues: A lack of understanding from banks about the sector, particularly the operating environment for smaller charities. The complex and lengthy process some charities find when they look to change their signatories. The complex and lengthy process some charities find when changing legal form. General difficulties when trying to open bank accounts. Charities' own lack of knowledge and preparation in supporting their banking relationship. So can and should we help as Regulator? Well, we do have a remit here. These issues have the potential to lead to ineffective financial management, and with respect to charities changing legal form, banking issues can act as a barrier, complicating our own processes for charities. Building a better relationship Your charity can help itself by ensuring that you understand and are prepared for the banking relationship and what it involves. For example, when looking to open a bank account, fully consider all of the services you may need and search for bank accounts that will deliver these. If you're considering changing you're charity's legal form, tell the bank once that decision is made so you know what's expected. Being prepared, informing the bank as decisions are made and understanding fully your own charity's needs will all help towards a more seamless relationship with your bank! Understanding each other What are our own ideas for helping to develop that important relationship between charities and their banks? Well, as we update key pieces of our guidance, we're going to include hints and tips about when and how charities should consider their banking relationships. We're already sending information to banks to highlight Scottish Charitable Incorporated Organisations, as we've found that wider awareness of this legal form is needed among the banks.We're also, with partner organisations and umbrella bodies, hoping to look at what information or literature is available for both charities and the banks, and see where we can add to this. For banks, we are considering producing material that highlights the specific peculiarities of charities and why they are different from businesses. For charities, something that helps them to ask the right questions to better understand their own banking needs. Overall, we want to encourage an improved relationship between charities and their banks - and we believe that the best way to achieve this will be to work in partnership with the banks and the charity sector. Trustees are responsible for the general control and management of their own charity, with financial management a vital part of this. And, as regulator it matters to us that this is made as easy as possible. https://www.oscr.org.uk/blog/2015/august/12/banking-on-oscrs-help/ https://www.oscr.org.uk/blog/2015/august/12/banking-on-oscrs-help/ Wed, 12 August 2015 14:59:19 https://www.oscr.org.uk/blog/2015/june/29/silver-city-surfers/ The inventor of the World Wide Web, Tim Berners-Lee, tweeted at the 2012 London Olympics, "This is for everyone". Well, we at Silver City Surfers believe the internet is for everyone too. We do our best to help older people in Aberdeen and the North East of Scotland to get online and gain basic computer skills. Our philosophy aims to help people and support older people to use modern technologies that can be used by them to connect to their loved ones and the World Wide Web, thus combating loneliness and isolation. These new skills can help keep older people stimulated and independent in today's digital world. Beginning in 2005, the charity, Silver City Surfers, has moved forward teaching computing and internet skills from desktops to laptops to tablets. The core strength of The Surfers is our dedicated and talented volunteers, both hospitality and tutors. Without these special people sharing their knowledge and expertise with others in a couthy manner, so many would still be excluded from the freedom of the Internet and valuable online interactions. Silver City Surfers run five weekly internet cafes across the city where older people can drop in and receive one-to-one tuition on whatever aspect of technology they wish. These are  free  sessions. Teaching is driven by the learner, at the learner's pace. Making their visit a social affair is equally as important as teaching and so, we serve some great refreshments after their training session where they can sit round the table, natter away and make new friends. We are very lucky that our hospitality volunteers are not only sociable but incredible bakers; everyone enjoys their bakers. We can report, the Great British Bake Off is alive and well and in full swing at Silver City Surfers in Aberdeen! Two of our weekly sessions are outreach sessions in Seaton and Northfield. It is always heartening to see how well these sessions are appreciated by the learners in these communities. Once a month we hold a very popular motivational talk at Satrosphere Science Centre in Aberdeen. The coffee and cakes are worth going for alone! Thank you Satrosphere for your generosity! These talks cover the basics on different aspects of computing and the Internet. It is a prefect introduction to technology for many older people. Attendees are often inspired to go further with their learning, which is exactly what we want them to do. How inspiring these talks are was beautifully demonstrated by the story of one reluctant learner, Pam. Pam happened to accompany her friend to one of these talks. At the end, she asked if she could learn how to use an iPad with us. She had firmly rejected an iPad from her family, living in the States, a few months earlier, insisting that she had no need for it. Things certainly changed quickly for Pam - she went from 'zero to hero' on an iPad in a very short space of time and now loves it! She has entered the world of Facebook recently and still comes to us for iPad tips and tricks. We are also one year in to a very successful two-year intergenerational project wherein we facilitate technology and Internet learning between younger and older people within local primary and secondary schools. Being a charity, fundraising is obviously very important to us, and Silver City Surfers has to strive to ensure we can support our activities. Funding comes from a variety of sources including local government organisations, individuals, local businesses to our volunteers running a charity shop for a week a year. The majority of funding currently comes from the Aberdeen Change Fund. The term 'digital inclusion' is bandied about a lot these days and everyone at Silver City Surfers is proud that we are doing something positive about that. Berners-Lee still works hard ensuring that the web is accessible to all and so do we.   With thanks to Silver City Surfers for kindly allowing us to re publish this blog. You can find Silver City Surfers through their   website ,   Facebook   and   Twitter . https://www.oscr.org.uk/blog/2015/june/29/silver-city-surfers/ https://www.oscr.org.uk/blog/2015/june/29/silver-city-surfers/ Mon, 29 June 2015 13:42:10 https://www.oscr.org.uk/blog/2015/june/17/8-key-lessons-for-young-trustees/ I've been a trustee since I was 18 (and I'm now 23) and have served on the board of the incredibly dynamic, complicated and fantastic global children's charity - Plan UK. I have also been a trustee of Leap Confronting Conflict and Interact Worldwide. Most recently, I joined the board of Brook, the young persons sexual health charity. Through these roles I have identified 8 critical lessons that I see repeated throughout the sector and some of them are unique to young trustees: 1.  You will experience tokenism.   I fundamentally disagree with tokenism. However, it has always niggles at me that many charities initially appoint younger trustees because they want to diversify their board for 'diversity sake' and sometimes appointments are therefore tokenistic. You can deal with it by turning the opportunity of your appointment into a challenge. use your time on the board and challenge yourself to demonstrate your ability. This will leave absolutely no doubt in anyone's mind that younger trustees can add just as much value as anyone else. 2.  Your age does matter.  Of course, it shouldn't but I've always found that young trustees have to constantly 'prove themselves'. You're young: therefore people think you lack experience or the technical expertise and knowledge you need to be able to add value to the board. Although this may be true to some extent, boards operate as a team - you make decisions collectively and usually by consensus. There are times when older colleagues need help. Eventually, you may be one of the most experienced trustees on that Board and it's fascinating watching the tables turn. There is also real value in sometimes asking the most simplest of questions; someone with a lack of knowledge can often be exactly what the discussion needs. Oh, and every time you have an external guest, they will look confusingly at you and if they haven't been briefed will think you're the tea maker! When they learn you're one of the trustees they treat you differently; it is hilarious to watch but also quite frustrating. It feels a bit disappointing that they only treat you with respect because you have decision making powers. 3.  You may get assigned 'youth issues' like participation or digital.  In my experience this isn't because they don't trust you, but because there's an assumption that if you're young then you are a default digital expert, even if it's not part of your specific skill set. On the other hand, whilst you don't want to be pigeonholed this can be your chance to demonstrate your skills - so dive in, take a chance and ask for guidance, advice and support if you get lost. 4.  You're not the only one who doesn't understand all the papers.  I guarantee you that every time you ask a clarifying question about an element of the papers there will be another trustee in the room that gives a sigh of relief.  You  are responsible for ensuring that  you  understand the issues that  you  are making decisions on. So, ask away! 5.  Governance is something you learn by being a part of it.  Running organisations isn't easy and governance can be complicated, but knowing when you're over stepping the mark, or when you're not doing enough is something you learn on the job; governance is not really a textbook issue. Once you've mastered it, you'll find that most governance structures in most organisations share the same characteristics. 6.  You may feel awkward more times than the rest of the board.  UK boards are increasingly adopting the US model of asking trustees to donate money to the charity. Well, most young people don't have the kind of cash that charities are looking for at their disposal. Don't worry - if they engage you properly, you'll be an ambassador and donor for life. If you can't donate large sums, consider the possibility of a small, regular donation or maybe look into fundraising - who knows, you might raise a couple of grand! And remember, you are giving your time, there is value in that and a good board will recognise that; and, they cannot force you to donate. 7.  You'll learn more than you ever thought you would.  Whilst also simultaneously utilising your skills in ways that are unique and novel to you. And, you are in a very unique position of being surrounded by talented folk from whom you can learn an enormous lot from. You should evaluate your own skills gap and seek formal training to develop your knowledge which is both good for your CV but also makes you a better trustee. 8.  You'll be in demand, externally.  Young trustees are still a novelty for most charities. People will ask you to blog, to tweet, to speak at events, to present to boards and to demonstrate your story. It's great if you can say yes, but also remember that you can say 'no' especially if you have to focus on work or University or whatever you do in the day. Finally, you'll have a great time. Enjoy it and please make it part of your role to share your story and champion charity trusteeship for everyone.   Thanks to Leon for agreeing to let us re-publish this blog which was originally published on his LinkedIn profile. You can contact Leon through   Twitter   or   LinkedIn . https://www.oscr.org.uk/blog/2015/june/17/8-key-lessons-for-young-trustees/ https://www.oscr.org.uk/blog/2015/june/17/8-key-lessons-for-young-trustees/ Wed, 17 June 2015 14:57:50 https://www.oscr.org.uk/blog/2015/june/03/dont-wait-for-a-rainy-day/ We’re regularly asked what level of reserves charities should hold.  There’s no right answer to this question – it’s impossible to provide a fixed framework that covers all circumstances and eventualities that affect the country’s 23,700 charities.  It’s your responsibility as a trustee to make the decisions that are best for your charity, but there are some broad principles you should help you get it right. Agree an appropriate policy .  Charities   should have a reserves policy that is agreed by the trustees and sets out the level of reserves they want to hold and why.  It should be proportionate for the shape and size of the charity, a few lines may be sufficient to explain what the trustees believe is required to face a future rainy day - for example, when there is a sudden loss of income. Set the right level .   There’s no fixed amount or percentage that must be followed – you must ensure that the level you set is appropriate based on your projections for income and expenditure, your current liabilities and an estimate of likely needs and risks over the next few years.    Regular review . The policy should be reviewed regularly to take account of different needs and circumstances.  You must also consider your progress against the policy.  If your policy requires you to maintain three months’ running expenditure and you only have one month’s worth, what steps will you take? Report on your reserves . Your Trustees’ Annual Report should tell donors, funders and other stakeholders how much you’re holding in reserve, and why.  This list isn’t exhaustive – the   Charity Commission for England and Wales has guidance (CC19)   that is more detailed and broadly reflects requirements in Scotland.  We’re considering our own guidance in this area and in the meantime I’d urge you to reflect and act on this essential area if you haven’t already done so. This blog first appeared in   Third Force News , 15 May 2015 https://www.oscr.org.uk/blog/2015/june/03/dont-wait-for-a-rainy-day/ https://www.oscr.org.uk/blog/2015/june/03/dont-wait-for-a-rainy-day/ Wed, 03 June 2015 10:46:32 https://www.oscr.org.uk/blog/2015/march/24/the-shape-of-things-to-come/ Last week saw an important renewal of the Scottish Charity Regulator’s mission after ten years of operations.   Our new report   sets out the positive response from the charity sector and other stakeholders to our proposals to change the way we work. Our overall aim is to encourage transparency for the public, ease reporting for most charities, and ensure more effective targeting of our resources. This will help ensure that high levels of public confidence are maintained, and that Scotland’s 23,700 registered charities can continue providing public benefit throughout the land. Our changes will work within the current legislative framework, and take account of a real-terms reduction in our budget. So, what does the future hold?  Essentially, our Board have agreed: Measures to encourage transparency, including the publication of charity annual reports and accounts on the Scottish Charity Register, and the creation of a database of charity trustees Changes to our reporting mechanisms, reinforcing the principles of good governance and a drive to more online services to streamline our processes A new system of Serious Incident Reporting, where charities must alert us to matters that may impact on public trust and confidence in charities. We’ll start to see the first elements implemented from the end of this year, and progressively thereafter.  We’re keen to work with charities and their advisers, to ensure that the sector is aware and ready, and has the support and information available to ensure a smooth transition.  So, please keep an eye open for our announcements and material over the course of this year. https://www.oscr.org.uk/blog/2015/march/24/the-shape-of-things-to-come/ https://www.oscr.org.uk/blog/2015/march/24/the-shape-of-things-to-come/ Tue, 24 March 2015 14:03:08 https://www.oscr.org.uk/blog/2015/february/13/bang-goes-the-theory/ Writing the   Getting Started   leaflet and   IRM’s   new guidance was an act of pure humanitarianism.  I did it to spare you from having to go through what I did when I first had to tackle risk management. Several years ago, I was tasked with setting up the brand new risk management function at the charity I worked for.  My experience up until then had been largely managing risks in projects and programmes so, to make sure I was 100% up to speed, I hit the internet.  I duly printed off a mountain of paper and, armed with the full Oxford dictionary, studiously worked through it all in the hope that I might find the necessary pearls of wisdom.  Some hope. When I wasn’t battling through technical jargon – ‘Model reparameterisation’, anyone? – I was reading material which both assumed that I had an expert team of risk professionals at my disposal, and that I worked for a large corporate. Well, like most charities, I didn’t have a team.  I was on my own and the risks that charities face are very different from those of, say, multinational banks.  I look after strategy, planning, performance management and project management as well as risk management and some other things I’ve probably forgotten about!  And the charity sector is hardly a byword for over-employment. We’re all stretched. I just don’t have time to research things as much as I’d like to and I know that you’re in exactly the same boat. So, having got to grips with the theory, two things struck me. First, you don’t need that technical talk when you’re starting out – turning risk management theory into relevant, practical process doesn’t need to be complicated. Second, if we in the voluntary sector start proactively managing our risks, we get rid of many of the obstacles that lie in the way of us fully achieving our objectives. ‘Risk management’ isn’t a phrase that makes most people’s hearts sing.  So, to engage our staff and get risk management embedded across the organisation, I think we need something really simple that demystifies the process and tells us how we might do it.  That’s why I’ve written   ‘Risk management for charities – Getting started ’ .  I hope you find it easy to read no matter how little spare time you have – and if you want more detail you can find it in our supplementary guidance.  Oh, and model reparameterisation? It just means reviewing the way you examine your risks. https://www.oscr.org.uk/blog/2015/february/13/bang-goes-the-theory/ https://www.oscr.org.uk/blog/2015/february/13/bang-goes-the-theory/ Fri, 13 February 2015 10:30:53 https://www.oscr.org.uk/blog/2015/february/09/whats-your-motto/ A case in the press last week caught my eye and made me reflect on the crucial role of the charity trustee in preventing, spotting and tracking fraud. Fortunately, such activity is relatively rare: the great majority of charities and those associated with them act properly as custodians of the charitable assets with which they are entrusted. But charities have no special immunity to fraudulent activity, and sadly there is a small but steady stream of prosecutions for the misappropriation of charity funds or assets. In the case that caught my eye, an employee of a charitable fund to train medical staff had been forging signatures and cashed 62 fraudulent cheques, embezzling over £50,000. The deception was uncovered when a number of suspicious transactions were identified, including discrepancies in financial records and a number of blank stubs on a cheque book.   I won’t go into too much detail with this particular case, but it’s a timely reminder to reflect on the motto of the Wilson Clan, Semper Vigilans, which means ‘Always Watchful’.     Perhaps that should be adopted as the motto for all charity trustees whose vigilance is often key in preventing such problems, or, where they occur, identifying them and therefore rebuilding trust . We have   guidance for charity trustees   to help them discharge their duties in helping to prevent and deal with fraud. So, remember the watchword of the Wilson clan and make it your business to ensure that all of your trustees are always watchful. https://www.oscr.org.uk/blog/2015/february/09/whats-your-motto/ https://www.oscr.org.uk/blog/2015/february/09/whats-your-motto/ Mon, 09 February 2015 11:20:04 https://www.oscr.org.uk/blog/2014/august/11/helping-to-set-up-a-new-charity/ We have just achieved our first year of being a registered charity - and what an exciting year it has been! Our charity - the   Elsie Normington Foundation   - was set up to develop a new centre for children and young people in the Highlands with learning disabilities. I decided to develop a new charity after discovering a lack of specialist facilities. Initially, I targeted a range of people with different skills and experience, to ask them if they would like to be Trustees on the Board. This process took some time, as several initially agreed but then dropped out and I had to find others who could commit the time in the longer term. However, I now have an established Board of committed and experienced people to bring governance to the charity. The constitution was of major importance as we wanted to have charitable status, and after submitting our first draft, we had several conversations with OSCR who were very supportive, making sure we had the right objects in our SCIO's constitution. We received charitable status on 28th May 2013 and were delighted with this validation of our objectives. Initially, we would deliver a community consultation and feasability on our vision to build a specialist play centre, community coffee shop, respite facility and some supported housing on the site. OSCR told us that we would come back to them in the future if we needed to expand our objects. We were very grateful for their support. On 20th March 2014 we launched our vision in the Eden Court Theatre, with eight Inverness choirs providing the entertainment. We sold 800 tickets and it was a wonderful event. As a result, many people came forward to help with community fundraising. To date we have raised £35,000 and are now ready for the next phase, applying for large grants. We hope that within the next two years we will raise £4 million and provide a much needed and excellent facility in Inverness. https://www.oscr.org.uk/blog/2014/august/11/helping-to-set-up-a-new-charity/ https://www.oscr.org.uk/blog/2014/august/11/helping-to-set-up-a-new-charity/ Mon, 11 August 2014 15:11:34 https://www.oscr.org.uk/blog/2014/may/12/when-it-comes-to-recruitment-charities-need-to-break-the-mould-and-take-risks/ After working for an organisation for 37 years and achieving just about everything I'd wanted to, i felt I was becoming stale and needed new challenges. Too young to retire and too fed up to stay with the old job, after an honest assessment of my experience, skills and talents, I decided to follow my passion and gut instinct to enter the third sector and help 'make a difference'. Whilst I did not expect this transition to be easy, with a track record of leading multi-national organisations through complex change, at home and overseas, I hoped my talents would quickly be recognised. Six months later, and still searching for an opportunity, I realised that fresh starts invariably involve false starts and detours. Despite up-skilling, completing business school courses, attending training courses, reading as much as possible about the sector, networking furiously with an increasingly large number of contacts, volunteering within the sector, and being totally flexible about where I might work within the UK, I was finding it difficult to make interview shortlists. While feedback from job applications suggested I was competitive, had relevant experience and fresh ideas, few organisations seemed willing to take a risk by trying 'someone or something different'. The mantra appeared to be if a candidate did not match 'essential' criteria he or she should be discarded. Job hunting in a downturn was never going to be easy, but simply recruiting to stereotypical competencies and taking the safe option seems to be a lost opportunity. Why not take a gamble? Why not select from a wider baseline and throw someone like me into the melting pot to compete on equal terms at interview stage and take it from there. Taking such steps could revolutionise thinking, embed cross-sectoral experience and enable step change in organisational output within the third sector. Two years on, happily employed in the sector, I am absolutely certain that my decision to change career was correct. I am enjoying life again. I have renewed enthusiasm and vibrancy. I am so pleased I did not lose heart or change track. Networking eventually enabled me to meet the chief executive of the  Association of Chief Officers of Scottish Voluntary Organisations (ACOSVO) , and organisation that was willing to take a chance and break the mould. With great foresight, I was invited to work as a volunteer with responsibility for delivering several meaty projects, encouraged to offer my services as trustee to a number of member organisations before being allowed to compete successfully for my current role - and here I am. So what would I do differently to make myself more competitive and what should third sector organisations do when recruiting senior management? From a personal perspective I needed a much better long-term plan, significantly more patience and the ability to see things from both ends of the telescope. I needed to take time to build my credibility in the sector through volunteering for higher profile organisations while seeking opportunities to serve as a trustee on larger third sector boards. I needed to nurture and use my network of contacts better through use of LinkedIn - a really valuable tool - to a far greater level. From an employer's perspective, while I understand the reluctance to recruit square pegs into round holes, I would encourage the short-listing of candidates for interview who do not fit the traditional criteria. In this way potential candidates are not filtered out unnecessarily at the pre-interview stage and organisations have the opportunity to consider fresh ideas rather than just the same stale offerings. So from my perspective the morale of the story is take a risk and recruit a budding Karren Brady into your organisation.   Andy Dey is the operations and development manager at  Association of Chief Officers of Scottish Voluntary Organisations (ACOSVO). Andy's blog was originally published in The Guardian on Tuesday 18th February 2014 and has been republished here with his permission. https://www.oscr.org.uk/blog/2014/may/12/when-it-comes-to-recruitment-charities-need-to-break-the-mould-and-take-risks/ https://www.oscr.org.uk/blog/2014/may/12/when-it-comes-to-recruitment-charities-need-to-break-the-mould-and-take-risks/ Mon, 12 May 2014 15:33:32 https://www.oscr.org.uk/blog/2014/march/31/a-week-in-the-life/ Monday I have a meeting in Edinburgh (where I live) this afternoon, and I'm not travelling to Dundee. So it's out with the laptop on the kitchen table and logging in to deal with some e-mails. The afternoon meeting is to plan future meetings of the Scottish Leaders Forum, a group that brings together leaders from across the public and voluntary sectors and which has driven forward work on cross-sectoral leadership development, the outcomes approach and performance improvement. Not only is it a useful discussion, I manage to grab a few folk before and after the meeting to discuss some live issues. Home early, and ready for the Monday night lifts for my teenage daughter....   Tuesday 8am train to Dundee. Day in the office starts with a casework round-up, then a catch up with my senior team. There's a steady stream of interesting registration and enforcement cases here, all requiring skill and judgement from our case officers. Next up, the all important weekly diary session with my PA before a snatched sandwich and the newspapers. In the afternoon, pleased to meet one of three new Board members that Scottish Ministers have appointed to OSCR - a senior lecturer with a deep knowledge of charity law. Catch the usual train home and get the tea on!   Wednesday Most of the morning is spent sifting, chairing a panel considering application for promotion from a number of our administrative staff. Pleased to help with their career development even if it means that, sadly, some of the successful applicants will take up promoted posts elsewhere (we have around 55 staff, all of whom are fantastic and dedicated, but internal career advancement opportunities can be limited). Delighted to hear from our Investors in People assessor that our accreditation at Bronze level is re-confirmed. Clearly, Wednesday has been an HR day!   Thursday Dundee again, with fewer meetings in the diary. A chance to take action on the papers and emails I've read on the train, and to start preparing for an important meeting next week where we'll be finalising options for moving to a more risk-based approach to regulation. Also gave comments on an emerging piece of research about charity effectiveness comparing Scotland and the USA - an interesting read on a challenging topic. Then onto discussions with the team on next year's business plan and priorities and also about research on social enterprise which is a growing area of interest. Met our second new Board member, a self employed consultant with good experience in the third sector. Stormy weather on the way home - winter is not quite gone....   Friday Take the slightly later (and slower) train this morning - more reading and email time. Shudder to think how many emails I've seen in two and a half years as CEO. Pleased to read an email about an upgrade to our OSCR Online service that 71% of Scottish charities are now using - the technical improvements in out latest release should mean a better service for all. Deal with some press queries first thing, then settle down to bash through more business - arranging a meeting for a project group of Digital Public Service Champions (a recent role I was happy to volunteer for); overseeing the issue of a press release announcing changes to our Board members (very sad to be losing two valued contributors); and making arrangements for a Charity Champion award which, in conjuction with SCVO, we are sponsoring this year for the first time. Home sharp to get to a school concert where my daughter is singing - lovely end to a busy week. https://www.oscr.org.uk/blog/2014/march/31/a-week-in-the-life/ https://www.oscr.org.uk/blog/2014/march/31/a-week-in-the-life/ Mon, 31 March 2014 15:38:29 https://www.oscr.org.uk/blog/2014/january/27/account-for-your-fundraising/ Charities had a tough time in the press during 2013 and, at the start of the new year, it is a spur for organisations to pull out the stops, making resolutions to strengthen public confidence and demonstrate the high standards and impact of charity fundraising. Here at the Fundraising Standards Board (FRSB), one of the self-regulatory bodies for fundraising, we believe that accountability is key, especially when it comes to raising funds. Donors give the charities they support their trust as well as their hard earned cash. And they are right to expect, in return, that charities should be willing to be held to account. What does it mean to be accountable in fundraising? Ultimately, it is trustees that are accountable for the charity's actions. Whether trustees are involved in raising funds themselves or simply advising on the overarching strategy, they need to know that it is being done responsibly, honestly and effectively, and - of course - that the charity is adhering to regulations. In Scotland and other parts of the UK, charities are held to account through the FRSB's self-regulatory scheme for fundraising ( www.frsb.org.uk ).  This means committing to best practice as set out in the  Institute of Fundraising's Code of Fundraising Practice  and submitting a compliant return each year. It also means displaying the distinctive 'give with confidence' tick logo on fundraising campaigns. Accountability should be part of every charity's culture. If a charity raises money for an appeal, it is only right to expect to answer queries about the costs, how much was raised and the impact of those donations. Important daily fundraising decisions like using new methods or accepting donations from corporates or individuals whose principles are not a natural fit, must be carefully considered against industry standards and organisational policies. In short, charities must be prepared to answer for what they do, encouraging donor feedback and responding to questions from the public. It is only through a top-level commitment to accountability, that donors will be encouraged to give with confidence. For more information, see  www.frsb.org.uk  or email FRSB Scotland at infoscotland@frsb.org.uk. https://www.oscr.org.uk/blog/2014/january/27/account-for-your-fundraising/ https://www.oscr.org.uk/blog/2014/january/27/account-for-your-fundraising/ Mon, 27 January 2014 15:41:07 https://www.oscr.org.uk/blog/2013/november/08/charity-is-part-of-the-fabric-of-scotland/ Scotland's charities make a huge contribution to our society by providing services and assistance to the people who need them most, and Trustees' Week is, quite rightly, a celebration of the hard work and commitment that goes into running the charity sector.  Charities make a huge contribution to Scottish life, and thousands of folk across the country are giving their time, commitment and skills, to their local communities and beyond, to make a real difference. That's clear to me every day, not just as a Minister, but in my work as a constituency MSP.  Last Friday, immediately prior to Trustees' Week, I was in Blairgowrie helping out at a local charity shop.  I joined the team behind the counter - and in the stock room! - at Barnardo's in Allan Street as part of Make a Difference Day 2013.  It was a real privilege to be volunteering again and helping out with raising sales for a great cause - and getting the message across that volunteering and charity work not only contributes to the community, but is a great way to develop new skills and gain experience. And that's a key point to make during Trustees' Week - it's not just communities and those receiving support who benefit, but those volunteering and running the charities get a real sense of achievement and new experience.  That's evident in the comments of the trustees featuring in the videos on the charity regulator's website. There are an estimated 180,000 trustees running the country's 23,500 charities and making a valued contribution to the life of our country.  Trustees' Week is an opportunity for all of us - not just those in the sector -  to mark the work and commitment of the folk who run charities.   People from all walks of life, young and old and with a diverse range of backgrounds, skills and experience.  But what unites them all is that dedication to improving the lives of others and contributing to a better society.  Becoming a trustee is an excellent way of getting involved and playing a vital role in such organisations and their work - so I encourage anyone who wants a real sense of achievement to get involved in running a charity.  What's clear to me - whether it's in Blairgowrie or anywhere else in the country - is the enthusiasm and community spirit of those taking part.  So, if you're thinking about whether to become a trustee, take that step - find out more from the organisations taking part in  Trustees' Week  , or a  local Third Sector Interface , or find a local charity in your area from the  Scottish Charity Register .  And let's all do what we can to contribute to the vibrancy, diversity and success of the charity sector in Scotland. https://www.oscr.org.uk/blog/2013/november/08/charity-is-part-of-the-fabric-of-scotland/ https://www.oscr.org.uk/blog/2013/november/08/charity-is-part-of-the-fabric-of-scotland/ Fri, 08 November 2013 15:41:32 https://www.oscr.org.uk/blog/2013/november/06/good-governance-in-glasgow/ Are you a trustee of a recently registered charity?  Or has your charity found it difficult to provide us with the information we require?  As part of our team discussions a few weeks ago, we decided to run a pilot event targeted at these charities - as we'd found that some new charities needed some support in the early stages; while many of the charities failing to submit returns and accounts were just unsure about what they had to do in order to comply. We invited charities in the Glasgow area to a session dedicated to reporting and designed to provide key information on getting returns submitted accurately and on time.  Some 46 charity trustees met with us at the Renfield Centre on 22 October.  Jane Lindsay, one of our Compliance Officers, talked through charity trustee duties and answered questions.  As Contact Team Manager, I explained the accounting and reporting requirements, then gave a live demonstration of OSCR Online - our new service that over two thirds of charities currently use. The feedback we received was very positive - 100% said that OSCR staff were 'very helpful' or 'helpful' - a big thank you to those who took part!  We think this would be a good format to repeat in other parts of the country - what do you think?  We're currently looking at a series of these events so if you have any ideas or suggestions we'd be happy to hear them! https://www.oscr.org.uk/blog/2013/november/06/good-governance-in-glasgow/ https://www.oscr.org.uk/blog/2013/november/06/good-governance-in-glasgow/ Wed, 06 November 2013 15:45:31 https://www.oscr.org.uk/blog/2013/november/06/thinking-of-becoming-a-trustee/ I've been involved with Safe Space for just over three years now, and am hugely enjoying the role.  If you're thinking about becoming a trustee, hopefully my experience - and the experience of others that you can read about on the Trustees' Week website  will help you make up your mind! I'd been looking to get involved with a local charity for some time and had been active in another charity on a fixed project basis.  It was during this work that I'd met the Chair of Safe Space, who invited me to find out more about them.  Safe Space were a really interesting charity for me - local, dedicated and with a cause that has a high demand for its services, yet is difficult to promote.  I wasn't entirely sure exactly what I could offer, but hoped that my business and HR skills might be of some use.  So I applied to become a Trustee, had an interview and got the role! What do I get out of it?  A sense of perspective and reality.  I work for a very large company and have good resources at my fingertips, meaning that I can get things done when I need to.  I find that working with Safe Space reminds me that there is more to the world than business and that every penny is precious and should be treated with respect.  I take that back to the teams I work with too - it really helps us be more careful in our decisions. What do Safe Space get out of it?  Since I joined I've had to turn my hand to all kinds of things in the hope of making a difference.  Anything from advising on HR issues to running workshops, from finding pro bono experts to support us in moving space, to rolling up our sleeves and bringing together a gang of volunteers to run our biggest fundraiser yet, the  Safe Space Write-a-thon .  We raised over £20,000 this year from that one initiative, which was a great achievement and something we're all very proud of. What I really hope they get out of it is a sense of support and willingness to help.  I also hope that they get a different perspective from me, and some benefit from my experience in the corporate world. What would my advice be to someone who wants to get involved?  Be prepared to be patient and understanding, and make a decent commitment - to be at the things you say you will, and to be involved for a while.  Accept that every idea you have won't be right for your charity, but every now and then, some of them might just fly.  Expect this to take up some of your time and know that you won't always get a warm fuzzy feeling just because you decided to get involved.  In return for all of that, I guarantee you'll get more than you imagined - you'll meet new people and get to be a small part of an inspirational world where people do things because it's the right thing to do, not because they're trying to make a profit. https://www.oscr.org.uk/blog/2013/november/06/thinking-of-becoming-a-trustee/ https://www.oscr.org.uk/blog/2013/november/06/thinking-of-becoming-a-trustee/ Wed, 06 November 2013 15:44:27 https://www.oscr.org.uk/blog/2013/november/06/happy-trustees-week/ Here we are again - that week in the calendar where we celebrate the hard work, achievements and contributions made by the country's thousands of charity trustees - and do what we can to encourage others to take up this important responsibility.  This year, we're making a conscious effort as Scotland's charity regulator to play an active part in generating awareness and participation. So, we're speaking at an event in Dundee, run by Scotland's Third Sector Governance Forum, to highlight the work of trustees and generate discussion; we've published case studies of Scottish trustees setting out the work they do and their experience of the role; and we've created this dedicated section on our website featuring blogs and video - which we'll develop over time to encourage discussion with the sector and the sharing of ideas. We estimate that there are over 180,000 charity trustees in Scotland, almost all of them unpaid volunteers, making a massive contribution to the life of our country and the welfare of people both here and abroad.  That's worth highlighting, and we're proud as charity regulator to work alongside our counterparts elsewhere in the UK, and sector bodies such as  SCVO ,  ACOSVO ,  Charity Trustees' Network ,  ICAEW ,  Institute of Fundraising , and  Young Charity Trustees  . If you haven't already done so, check the  Trustees' Week 2013 website  to find out more. I hope you'll feel similarly encouraged to take part and highlight any activity that's going on in your area.  And remember - Trustees' Week may be the highlight of the calendar but the activity it promotes is all year round, so I hope you'll keep coming back to share your ideas and achievements.  It's part of our wider engagement work where we aim to be more interactive with the sector, and we actively welcome your contribution.  Over to you! https://www.oscr.org.uk/blog/2013/november/06/happy-trustees-week/ https://www.oscr.org.uk/blog/2013/november/06/happy-trustees-week/ Wed, 06 November 2013 15:43:01 https://www.oscr.org.uk/blog/2013/november/04/a-typical-day/ I oversee the day-to-day activities of the Association of Chief Officers Scottish Voluntary Organisations (ACOSVO) and am line manager to five staff and four volunteers.  I am also a Trustee at The Junction, a Leith-based young person's well-being charity and a member of the Rotary Club of Corstorphine.  After my customary morning swim in Stockbridge I get in early to catch up on emails, having been away at the ACOSVO Dinner and Annual Conference last Thursday and on leave on Friday.  Pat Armstrong, our Chief Executive, has beaten me to the draw and is already in, trying to meet the deadline for an important funding application. So I am immediately side tracked as I try to critique and proof read her work.  The ACOSVO Team are now beginning to drift into the office and my focus shifts toward preparation for our weekly Team Meeting where we discuss 'lessons identified' from our Conference, look ahead to events we are running over the next month and agree 'Leadership Exchange' matchings between our Members and Public Sector Leaders.  Our Community Jobs Scotland employee in only his third week with us needs help accessing our database where he is researching local, community based, leaders who might benefit from joining one of our 8 Regional Networks.   But with numbers attending the next Regional Network meeting in Tayside only at a dozen, action is urgently needed to increase numbers, so I ask him to make contact with the local Third Sector Interfaces to see if they might be willing to advertise the event across their network.  Next, I get a phone call from one of our Strategic Partners who is generously offering to conduct pro bono work to audit our pension provision and to help us prepare for auto enrollment.  We agree a way ahead and I quickly compose an email note of action outlining the main discussion points and timeline for the work. Lunch is taken at my desk in discussion with our Communications and Marketing Officer.  We discuss the content of our post Annual Conference Report and analyse delegate evaluations from events we ran last month showing member satisfaction rates, one of our key performance indicators, continuing to grow towards target. I now pop out for coffee to meet a potential facilitator of a couple of events ACOSVO intend to run in 2014 on a PR and Communications theme.  I am excited by the likely event content, agree broad details and I return to the office to put the ideas down on paper whilst they are still fresh in my mind. The Office Manager is now seeking final approval of the financial forecast which will be presented at our next Board meeting.  Although we have run through the figures previously, we quickly become immersed in the detail and lose track of time.  My computer flashes up a reminder that I need to leave immediately to get to The Junction's Board meeting.  I dash off to lead discussions on the planning and preparations for premise move, an exciting opportunity for The Junction to expand, upgrade and move from old, cramped accommodation into modern, purpose built, offices.   Thankfully, the Board have pre-read the material I circulated last week and we quickly reach consensus on the way forward.  I arrive home, reheat my dinner in the microwave, join my wife in the lounge and open my laptop to finally access those emails!  Perhaps tomorrow will be quieter? https://www.oscr.org.uk/blog/2013/november/04/a-typical-day/ https://www.oscr.org.uk/blog/2013/november/04/a-typical-day/ Mon, 04 November 2013 15:46:02