Public Trust in Charities

In the ever-evolving landscape of the UK's social sector, public trust in charities remains a cornerstone for the success and sustainability of these vital organisations. The relationship between the public and charities is a complex interplay of expectations, perceptions, and experiences that shape the level of confidence in the sector.

One of the primary objectives of the Charity Commission is to increase public trust and promote compliance amongst charity trustees. For over ten years now the Charity Commission has conducted a research programme that has provided an important insight into public perception of the charity sector and on how charity trustees undertake their roles and responsibilities so that their impact is felt by the people and causes who need their help most.

The results of the research which have recently been published are interesting. They show that:

• Public trust in charities is complex, driven by good regulation but also the actions and behaviours of individual charities
• Negative actions by one charity can have an affect on perception of charities generally
• Not everyone thinks of ‘charities’ as the same thing or values them in the same way

The research indicates that public trust in charities has stabilised, with the sector enjoying more confidence than it did between 2016-18 when, perhaps surprisingly, charities were less well trusted by the general public than the ordinary person in the street. Whilst trust levels have not returned to their pre-2015 heights many other organisations have seen falls in trust over the last couple of years. As a result, charities are now more trusted than most other organisations.

The research has a number of other key findings which include:

• The trust in charities depends on personal circumstances. For example, university educated professionals in cosmopolitan areas have far more trust in charities than blue collar workers in rural areas and small, traditional market towns
• Responsible use of funds remains the most important factor in trust
• The public differentiates between larger national or international charities and small local charities. The research found that 40% of people questioned are more likely to trust a charity that focused on their local area compared to 19% who are more likely to trust a charity that does work across the country
• People continue to believe that charities are making an impact

The research also looked at the role of trustees and showed that the views of trustees are largely aligned with the public. In particular the research showed that:

• Trustees and the public do not have inherently different world views
• There are some differences on specifics such as what is acceptable pay for senior charity staff. However, the views are not fundamentally opposed

In terms of the performance of their role the research found that:

• 98% of trustees said they were very, or fairly, confident about governing their charity
• They are similarly confident about protecting their charity and its beneficiaries from wrongdoing and harm
• Over 90% understand that they are responsible for ensuring that all the charity’s activities help to fulfil its purpose

However, there are some areas where it was found that a significant minority of trustees need to refresh their understanding. For example, around 20% of trustees had not fully appreciated that as the key decision-making body, responsible for governing and directing the charity, they are collectively responsible for critical functions and cannot wholly delegate that overall responsibility. In addition, only around 75% of trustees could correctly identify what is, and is not, a conflict of interest when presented with different scenarios.

When considering charity governance, it is often tempting to focus on the policies and procedures that relate to the financial systems operated by that charity. However, it is important that trustees consider all aspects of the charity’s operation to ensure that public trust remains high, not just in their own charity but in the sector as a whole. Public trust means that the public are more likely to donate time and money, be supportive as well as making it easier to recruit both future trustees and employees.

More information on the research and findings can be found here. 

if you would like to discuss this in further detail, please get in touch with one of our Charities team members here at James Cowper Kreston.