Whistleblowing Disclosures to Charity Commission Surge by 72 pc

The Charity Commission received 561 whistleblowing disclosures between 1 April 2023 and 31 March 2024, marking a 72% increase – the highest in the last nine years. According to the Commission, 54% of these disclosures came from current and former employees, with the primary concerns involving governance, safeguarding, and financial management, similar to previous years.

Notably, reports related to financial harms saw a sharp rise, jumping to 128 from 62 the previous year, while safeguarding issues increased to 104 from 81.

Other issues flagged during this period included conflicts of interest, disputes, reputational damage, GDPR breaches, and questions around public benefit. Education and training charities were the most frequently reported, with 258 disclosures, followed by charities focused on health and life-saving efforts (131) and general charitable purposes (127).

In addition to whistleblowing, public complaints about charities surged by 50%, from 2,086 in 2022/2023 to 3,131 in 2023/2024. Auditor and examiner reports of Matters of Material Significance also rose by 10%, increasing from 431 to 475. Reports of Serious Incidents (RSIs) from charity trustees grew by 5%, reaching 3,106 compared to 2,969 the previous year.

The Commission suggests that the rise in complaints may be partly driven by the pressures charities are facing due to the post-Covid financial environment, inflation, and the cost of living crisis.

In response to the disclosures, the Commission opened 471 cases (84%), with the remaining 90 cases (16%) involving charities already under investigation. By the end of the reporting period, 80% of the cases had been closed. Of these, 264 cases were closed with no further action deemed necessary, while 115 charities received regulatory advice or action plans. Information-gathering powers were used in 35 cases, 16 were referred to other regulators, and in 14 cases, trustees were found to be addressing the issue effectively.