Charities watchdog praises the Mail for exposing dirty tricks
‘Outrage at the sharp practice’
THE charities watchdog praised the Daily Mail last night for exposing ‘sharp practices’ used to raise money for good causes.
Charity Commission chairman William Shawcross launched a broadside against bosses of big charities for handing over fundraising to outside firms.
The regulator said they had ‘outsourced their responsibilities’ for fundraising and would now have to follow tough new rules.
As a result of the scandal and abuses exposed by the Press, he said leading charities had ‘fallen from their position of trust’ among the public.
He also challenged trustees to ensure their charities are properly run, in the wake of the collapse of Kids Company.
This summer the Daily Mail’s investigations unit exposed the outrageous use of aggressive cold- calling techniques to target vulnerable people, including those with dementia.
In reports that caused a public outcry, this newspaper showed they were using high-pressure ‘boiler room’ sales tactics to raise money, telephoning people on the Government’s ‘ no- call’ list and ordering their fundraisers to be ‘ brutal’ and ‘ferocious’ when asking for money.
The Mail also reported earlier this month how donors’ personal details were routinely traded by charities, sometimes even being sold to conmen.
It led to an apology from major charities, a change in the law and a government inquiry, which is due to report next week.
Bosses of the RSPCA, NSPCC, Oxfam and Save the Children were hauled before MPs last week and admitted the Mail had done a ‘public service’ and that the investigation had been ‘a wake-up call’ for the charity sector.
In a major speech yesterday, Sir William insisted charities were still a ‘vital, civilising aspect of our country’. But he added: ‘The fear of many is that from this strength of tradition and position of trust, the sector has recently fallen.
‘Its special place in the nation’s heart helps to explain the level of outrage at the sharp practice revealed this summer. It fell to another estate – the Press – to expose the shocking fundraising practices employed by some of our best-known charities.’
He also referred to the scandal surrounding the collapse of Kids Company, which he said had ‘thrown into relief concerns over finance and governance’. In a tough message to trustees, who oversee how charities are run and act as their boards of governors, he said they needed to take a ‘ robust approach to ensure their organisations are properly managed’.
This summer the chairman of Kids Company, BBC executive Alan Yentob, came under fire after it collapsed amid accusations of mismanagement.
Sir William said: ‘ Trustees are under legal duties to ensure their charities’ finances, reputation and property are well conducted. The events of the summer serve to underscore the importance of this role.
‘We have seen the outcome in the private sector when non-executive directors do not fulfil their responsibilities. Trustees of charities should take note of the events this summer and reflect on whether they are fulfilling their duties.’
He added: ‘Trustees carry full legal responsibility for their charity – no matter its size, no matter how many executives it employs. The buck stops with them.’
After details of the scandal emerged, David Cameron moved to change the law to force charities to spell out their fundraising rules.
He also commissioned a review by Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations. It is due to report next week and will consider whether further action is needed.