CTN response to consultation on proposals for reporting public benefit, charities accounts and reports

Submitted 14 September 2007 

Charity Trustee Networks is a registered charity, which aims to support trustees from across the voluntary and community sector in order to improve the governance and therefore the effectiveness of their organisations.

Charity Trustee Networks is an organisation which is continuously developing its reach to trustees through its face to face and online networks for trustees. We have considered the consultation document, have highlighted the consultation on our website at www.trusteenet.org.uk and have invited the views of trustees on the subject.  We are aware that, across the body of trustees, there will be differing opinions on whether or how organisations should report their public benefit.  We seek in this response to highlight the trustee perspective generally and the practical implications of the proposals on a trustee and a board in the delivery of their responsibilities

Charity Trustee Networks believes that charities should be able to demonstrate publicly that they are providing a benefit to the public.  However, the method of doing this should not be onerous or formulaic.

We, and the trustees who have contacted us on this subject, feel that the Annual Report is a suitable vehicle for reporting, and that ideally, charities should already be demonstrating their public benefit in this way.  Indeed, many are.  Where this is not happening charities should be encouraged to take steps to address this through expanding on the information already provided.  However, it should be made clear whether this is a legal requirement or good practice, and support provided to enable charities to report their public benefit in interesting and creative ways, and without incurring expensive professional fees.  Charity Trustee Networks would be happy to work with the Charity Commission to help gather and disseminate good practice in this area.

With regard to the requirement that the Annual Report contain confirmation by the charity trustees that they have paid due regard to Commission guidance on the subject of public benefit, this could be perceived as an extra burden for trustees.  If trustees are to comply, they will need to be provided with clear, highly accessible information and guidance on how to do so, including clarity about the exact meaning of ‘due regard’ in this context.

We welcome the opportunity to respond to this consultation and would be happy to work with you in the future in disseminating the outcome of this consultation to those with trustee responsibilities from across the third sector and encouraging best practice.