The Regulator for Charities in England and Wales
(Version December 2007)
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The Charity Commission is the independent regulator for charitable activity. This is one of a series of reports that present our case-working experience, supplemented by additional research. Their purpose is to help increase understanding of an issue. They are part of our mission to help charities maximise their impact, comply with their legal obligations, encourage innovation and enhance effectiveness.
This report presents our findings from the 'Working with Faith Groups' programme, conducted between 2004 and 2007 in which the Commission consulted with a broad range of faiths throughout England and Wales.
With well in excess of 25,500 faith-based charities operating in England and Wales, faith-based charities form a significant part of the charitable sector1. The beneficiaries of these charities can be counted in their millions, so it is clear that what they say and do has a real impact on society as a whole.
A few years ago, a number of factors made the Commission aware of the benefits of deepening our understanding of faith-based charities and the context in which they operate. We were convinced that developing our insight of their issues would provide us with important information to help us plan services that balanced our dual roles of regulation and support.
In 2004, therefore, the Charity Commission began a programme of work aimed at extending the Commission’s work with faith-based charities. We wanted to build our knowledge of issues within a broad range of faiths in England and Wales, and to extend our knowledge about the faiths themselves. The work involved designing and delivering a comprehensive two-year programme of national outreach events.
We hoped this close contact with charity delegates across the faith spectrum would provide invaluable insight on a scale we had not previously experienced. We wanted to optimise our support to faith-based charities, and to build a framework to enable them to develop their capacity and to maximise their performance and impact. At the same time, we expected to gather crucial knowledge to help us develop our regulatory approach to faith-based charities.
This initial programme of events has now been completed. The events were hugely successful - through them the Commission met with representatives from over 800 charities across 11 different faiths who provided us with a wealth of information. We gained valuable insight into the main issues, concerns and tensions faced by faith-based charities, and the benefits they bring to modern society. In so doing, we have begun to build strong links with people who deliver the work on the ground as well as those who are planning future strategies for faith and social cohesion within government and charities themselves.
This report provides a full description of this work and explores some of the key themes that emerged. Our findings confirm the importance and breadth of the faith-based charity sector, and the emerging lessons will be carefully considered. The Commission’s newly established Faith and Social Cohesion Unit, working with staff from across the Commission, together with representatives from faith-based charities, will determine how the Commission might deal with these issues.
The role of the Faith and Social Cohesion Unit is to help shape the Commission’s work with and support for the faith sector in promoting the valuable contribution it makes to society, enhancing and promoting high standards of governance and accountability and creating an environment in which moderation, cultural understanding and community cohesion can flourish. It will be co-ordinating the Commission’s work in providing advice and capacity-building support to faith-based charities in those areas which it regards as key. Amongst others, these key areas include trustee duties and responsibilities, governance and finance. The Unit’s initial focus will be on mosques and other Muslim charities.
The Commission is also establishing a wider Faith Advisory Group with broad representation from a range of different faiths. This Group will play an important role in assisting in the Commission’s consideration of the issues raised in this report.
The Commission’s awareness of the need for this programme grew from many roots and in 2004 led us to conclude that, to be a successful modern regulator, applying resources effectively for the maximum benefit, we should better understand what the issues and tensions were within faith-based charities and how we could improve our services to this group of charities.
We were particularly interested in governance issues: a number of these had arisen through our case work and we considered that there could be some issues that were distinct from those in non faith-based charities. However, we felt that there were broader issues where we needed to develop our understanding of this aspect of the charity sector.
The Commission’s engagement with faith-based charities suggested that, as with other elements of the charitable sector, there was a potential lack of clarity about the role and purpose of the Commission, and the services it provides. Following the Commission’s strategic review and more recently the passage of the Charities Act 2006, the Commission is now delivering a wider range of services, helping to reinforce this message to faith-based charities so that they could better understand how we could work with them.
In addition, work around this time with Muslim and independent evangelical Christian charities informed our decision to create a strategy for building our knowledge of faith-based charities. However, we soon realised that the range of faiths operating in England and Wales meant that we needed to cast our net wider. We identified some immediate actions for working with the independent Christian churches, that targeted the specific issues we had encountered within that part of sector, and we also decided to target our outreach work to the broad range of faiths for which there were registered charities.
As well as the involvement of a large number of Commission Board members and staff from across the organisation, the programme benefited considerably from the advice and support given by Maqsood Ahmed, Minority Faiths Advisor at the Faith and Cohesion Unit within the Department of Communities and Local Government.
"I think this was a useful start for the Commission and charities to learn about each other"
The faiths included in the programme were:
Muslim, Jewish, Hindu, Sikh, Buddhist, Baha’i, Jain, Ravidassi, Zoroastrian, Ahmadiyya and Valmiki.
Although these faiths are classed as a minority in the UK, we were sensitive to the fact that they include the main worldwide religions, with many of them having a long-standing presence and major influence in our society.
Involving customers in this process was extremely important, and we were clear that any successful solutions for building the quality and range of our services should take into account the needs and aspirations of the charities themselves. We considered it vital to hear first-hand what charities thought of us and how they felt we could support and regulate them.
As the Muslim population and faith are the fastest growing in the UK,2 we decided to commence our work with Muslim charities and then progress through the other faiths. Consultation with the Faith and Cohesion Unit of the Home Office (now part of the Department for Communities and Local Government (DCLG)) both endorsed and supported our intentions. We set the following objectives for the programme:
Through a consultation process lasting until March 2007:
a) to develop a better understanding of faith-based charities and their particular governance issues;
b) to discover what issues and problems are faced by faith-based organisations when dealing with the Commission; and
c) to consider possible solutions to the problems and issues raised and ways toi) improve service delivery to faith-based charities,
ii) enable them to improve their effectiveness and
iii) work collaboratively to achieve well-regulated faith-based charities.
For the purposes of this work, our definition of the term faith-based charities included not only those charities established specifically to advance a particular faith, but also those where faith is the driving force behind the charitable activity and whose charitable purposes are informed and underpinned by their faith. For example, we included not only Gurdwaras (ie Sikh places of worship), but also Sikh charities established to relieve poverty and those which promote education or other community activities.
By any standards this has been a significant piece of work by the Commission.
Between October 2005 and June 2007, 15 events took place in towns and cities throughout England and Wales with venues in London, Essex, Birmingham, Bradford, Bolton, Leicester, Manchester and Cardiff. These locations represented, as far as was practicable, places where the various faith-based charity communities are most concentrated.
Over 600 delegates representing more than 800 faith-based charities attended consultation events, with as many as 100 attending the larger events. Delegates represented the broad range of charities, from those with income below £5,000 a year, to those with incomes in the tens of millions; those which operate as grant makers, to those which provide benefit to large numbers of beneficiaries within their communities.
It has already had a positive impact on the thinking of both the Commission and the charities themselves – for example, the establishment of the Faith and Social Cohesion Unit and the development of a closer working relationship with various faith-based umbrella bodies .
Charities invited and represented, by faith:
|
Faith |
Number of organisations invited |
Number of organisations represented |
Number of delegates |
|
Muslim |
821 |
128 |
212 |
|
Jewish |
562 |
541 |
136 |
|
Hindu |
259 |
63 |
129 |
|
Sikh |
249 |
43 |
77 |
|
Buddhist |
234 |
39 |
60 |
|
Baha’i |
88 |
2 |
2 |
|
Jain |
31 |
2 |
3 |
|
Ravidassi |
18 |
0 |
0 |
|
Zoroastrian |
12 |
4 |
6 |
|
Ahmaddiya |
8 |
1 |
2 |
|
Valmiki |
7 |
1 |
1 |
|
Total |
2289 |
824 |
628 |
During the conduct of the consultation events it became clear that women were, generally speaking, poorly represented. Although women were better represented at some faith group events than at others, overall less than 10% of those who attended were women. Whatever the reasons for this under-representation, it left us feeling that there were important views still to be heard.
Knowing that women play a hugely important role in their faith communities, an additional event was held to which exclusively women were invited. Invitations were sent to women-only faith groups, or to women who are members of those faith-based charities which had already sent male representatives to one of our previous 14 events.
We wanted to hear from delegates about their views on the work of the Commission, their own perspective of their roles as representatives of faith-based charities and suggestions as to how the Commission’s service to faith-based charities could be strengthened. The events were also used to provide information about the work of the Commission, its strategic direction and the structure of its services as well as, with later events, the impact of the Charities Act 2006.
Events began with either a prayer, or a few words from a local spiritual or community leader. This was followed by an introduction from either a Commission Board member or Director, after which Commission staff gave a presentation which detailed the role, vision and values of the Commission, together with details of the purpose of the day.
The most vital part of each event was the focused group consultation sessions, where delegates were split into smaller groups for workshops sessions. Each group was given a series of specific, open questions for them to discuss and record their responses.
This was followed by a plenary feedback session when participants’ comments were recorded. This incorporated the opportunity to discuss the issues raised within the smaller groups and to ask further questions and answers.
Each event closed with lunch. This provided an opportunity for continuing discussion in an informal setting. Delegates counted this as an invaluable part of the day, not only because it gave Commission staff the opportunity to discuss issues more informally than during the event itself, but it provided an excellent opportunity for networking between the delegates themselves. Many delegates said that this was the first opportunity they had had to discuss their work with representatives of other charities.
Generally, data was collected from four sources:
In addition, many informal comments were collected in the networking sessions, and written comments and suggestions were received from charities that could not attend but who wanted their views to be considered. Comments provided by participants reflecting after the events were also taken into account.
The information from all of these sources was collated and analysed and the emerging issues and themes form the main source of the findings and topics for further consideration contained in this report.
Individual reports have been produced specifically to cover each of the faith groups. Draft copies of these reports were sent to 'critical friends' for their comment before the final reports were sent to those organisations which sent delegates to any of the 15 events.
A number of issues, concerns, needs and aspirationswere expressed by charities across different faiths, and the principal ones are:
Although all the above issues were regarded as important by those who attended the events, it became clear that the issue which gives most faith-based charities the greatest concern is their desire for the Commission to provide face-to-face advice, guidance and training in connection with both the appointment of trustees and improving the understanding of their roles and responsibilities.
Those issues which were specific to particular faiths and which were mentioned on a number of occasions, or by a number of delegates, are listed below:
Not included in this report are those issues which were raised only once by an individual delegate, those that were specific to the circumstances of an individual charity and also those which fell outside the Commission’s remit. These were dealt with by Commission staff at the events themselves. One example of this latter type of issue was a request that the Commission should give “more financial assistance” to faith-based charities – in other words that the Commission should be giving more money to charities. Comments like this made it clear that a number of delegates across the faiths believe that the Commission is involved in influencing government about charitable giving or actually distributing funds.
Finally, delegates, regardless of faith, saw these events as just the first in what they hoped was a series, in which the relationship between the Commission and faith-based charities could grow.
Staff were often asked by delegates:
“When will we be having the next one?”
From the wealth of comments and feedback from the consultation events, the following emerged as key issues that are important to faith-based charities or suggestions from them for wider consideration.
Issues to consider:
Clearly these wide-ranging comments and suggestions demonstrate both the serious and thoughtful engagement from faith-based charities in this process of consultation and review, and the commitment and enthusiasm from the faith-based charity sector to enhancing the regulatory framework in which they operate and increasing the public awareness of the work and impact of their organisations. Some of these suggestions relate directly to the Commission in our regulatory role, and we will be considering these as part of our developing work to better support the faith-based charity sector. Some issues raised are clearly wider points for government or the charity sector to consider, and we hope that in publishing this report and developing our strategy for engagement with faith-based charities, we can also prompt a wider debate.
"It was very educative. Such events should be held once a year"
There have already been an enormous number of benefits for both the Commission and faith-based charities. It is clear that “Working with Faith Groups” has served to raise the Commission’s profile and build its credibility. Delegates frequently expressed the view that their perception of a stuffy and bureaucratic regulator, reluctant to listen, had been changed. Suspicions that it would try to "catch them out" if they approached the Commission for information, were also allayed.
Faith-based charities have told the Commission that they already have a clearer picture of both its role and its attitude towards faith-based charities within the sector as a whole. Whilst they still have some reservations about the commitment of the Commission towards them, this programme of events has been recognised as a highly positive (if first) step forward. Knowledge about their own responsibilities has been enhanced, leading to the prospect of strengthened governance.
Comments were consistently raised about the high standard and quality of service the Commission had provided, and the important role it plays was recognised, providing welcome confirmation that the Commission is having a positive impact through its service delivery. The events were also regarded by many delegates as an excellent (and sometimes the first) networking opportunity to meet with other charities within their own faith. For example, as a result of the Sikh event, the Nishkam Civic Association, which was our host, is already in the process of a establishing its own network with a view to arranging further events.
The initiative has had wide-ranging media coverage (radio, newspapers and the sector press) which showed this aspect of the Commission’s work in a very positive light and has helped to change perceptions of the Commission as a body willing to listen, engage and act.
However, it is also clear that the Commission has much to do in enhancing and tailoring its services to, and understanding of, faith-based charities. To this extent it has begun to develop extensive working relationships with a number of key faith-based charities, other non-charitable bodies which represent them and with other agencies and government bodies involved in this area of work. These include the Foreign Office Outreach Team and the Faith and Cohesion Unit of the DCLG. Maqsood Ahmed of this latter body attended and was key to the success of many of the events and in helping the Commission staff increase their opportunities to build knowledge and develop useful contacts.
The events have also helped create a much clearer picture of what faith-based charities would like from us and we can draw on this feedback in developing our work.
In addition the programme of events has had the benefit of giving Commission staff the opportunity to be involved directly in developing relationships with faith-based charities and of building their own knowledge and links with their colleagues.
Finally, the fact that the majority of events were attended by one or more Commissioners, including the Chair, and the Executive Director for Legal and Charity Services, helped enhance both the Commission’s reputation and the public perception that it was taking the views of faith-based charities seriously at the highest level.
This report summarises the extensive and detailed programme designed to connect with and understand more about faith-based charities in today’s society. The consultations have elicited intensely valuable information for the Commission about:
Our findings have confirmed the Commission’s belief that faith-based charities are such an important part of the sector for the Commission that we engage proactively with them and work constructively with them going forward. Their work enriches the lives of people in their millions, both within their faiths as well as those in the wider community. The Commission is committed to building services appropriate to their specific needs and to support them in building their expertise and self governance. In itself, this will make a considerable impact on the broader community and will build confidence in charity generally. We will consider carefully the suggestions made for carrying forward the Commission’s work.
This effective outreach programme has shown that the work of the Commission is greatly valued within the faith sector and that perceptions of the Commission and its modern role are changing favourably. Our activities in this area provide a platform for the Commission to demonstrate that it is a modern regulator, willing to listen to the charitable sector and to build sector views into its strategic direction and the delivery of its services.
The work of the newly established Faith and Social Cohesion Unit, whose purpose is detailed in the introduction to this report, will be the key means by which the Commission can ensure it remains focussed on this element of its overall vision of charity working at the heart of society.
"We now have a better understanding of what the Commission’s aims are."
If you would like more detailed information on the range of faith-based charities with whom the Commission has consulted as part of this programme, please call 0845 300 0218 and ask for Jim Melton-Bradley.
1. Until recently, because many faith-based charities were not required to register with the Charity Commission, it has not been possible to estimate a precise figure. However, recent research undertaken by the Commission has lead us to estimate that there are well in excess of 25,500 faith-based charities operating in England and Wales.
2. “Review of the Evidence Base on Faith Communities” Report of the Mercia Group to the Office of the Deputy Prime Minister, April 2006.
3. Statement of Recommended Practice
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