Policy Update - July 2018
Lack of diversity in Foundation boards - the CASS Centre for Charity Effectiveness and ACF have published a report on grant-making charity trustees which show a lack of diversity in Foundation boards. There are twice as many male trustees as women and Foundation boards are 99% white. Almost 60% of all Foundation trustees are over the age of 65, around 10% higher than for Charity trustees in general. ACF has launched their Stronger Foundations initiative, with a specific working party focused on Diversity. Read more
NCVO consults on a draft Code of Ethics for the sector - wider than simply safeguarding, the Code of Ethics aims to to develop an overarching set of ethical principles that could act as a framework for all charities. NCVO are asking for feedback by 26th September. Read more
Charity Digital Code - a consultation on the first Charity Digital Code of Practice has opened, and is asking for responses by 25th September. The code sets out 7 principles showing the impact of digital on charities and identifying best practice. Read more
The Value of Small - research commissioned by the Lloyds Bank Foundation for England and Wales shows the importance of small and local charities in their communities. Seeking to influence the government’s Civil Society Strategy it calls for national and local action to protect, promote and develop smaller charities. Read more
Charity Commission updated automatic disqualification rules for Charity trustees and managers - from 1 August 2018 there will be 2 key changes to the automatic disqualification rule. Firstly, an increase in the number of legal reasons that disqualify someone from acting as a trustee. The new reasons include being on the sex offenders register, and certain unspent convictions - such as for terrorism or money laundering. Secondly, people who are disqualified from acting as a trustee are also disqualified from holding senior manager positions at a charity; such as Chief Executive or Finance Director. Read more
Fundraising regulator issues guidance on new reporting requirements - The Charities Act 2016 requires more detail to be included in Annual Reports around monitoring and standards of fundraising activities. The guidance seeks to remind trustees of their new duties and is endorsed by the Charity Commission. Read more
Charity Commission launches new trustee welcome pack - the pack is to be sent out to all new trustees, but is also a useful reminder to existing trustees. Read more
Trust in Charities 2018 - the Charity Commission has released new research into public trust in Charities. The research finds that public trust in charities has plateaued since 2016, and remains low at 5.5 out of 10. The public now trust charities less than they trust the average person in the street. It identifies the key drivers of trust in charities as being:
- transparent about where money goes
- true to their values
- efficient in their use of resources
- well-governed and well-managed
- able to demonstrate making a positive difference
It also finds a link between levels of trust and levels of giving. Read more
Co-head of Charities
Kate specialises in investment on behalf of charities, endowments and foundations and has over 20 years of experience, with 15 years at Schroders and Cazenove. She is a CFA charterholder and has a BSc (Hons) in Natural Sciences from the University of Durham, is Chair of her local community foundation, Vice-Chair of her local primary school and Chair of the Finance Committee of the Cripplegate Foundation. She won a Women in Investment Award for her work with the Charity Commission and FCA creating a new charity investment vehicle.
She has researched and co-authored a series of publications on Charity investment best practise including 'For Good and Not For Keeps', which examines sustainable expenditure, ‘Intentional Investing’, which researches how charities can align their investment policy with their aims as an organisation, and more recently ‘Time and Money’, which explores how charities can make the best use of longevity. Kate was chair of the Charity Investors' Group for 12 years, standing down in 2019. In this role she collaborated with CFG and authored a guide to written investment policies. Kate also regularly writes on charity investment in the charity sector press.
The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Limited 12 Moorgate, London, EC2R 6DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored.