The Intelligent giving blog

Public trust in charities: it’s clear as mud

Adam Rothwell - Friday, May 23, 2008

An abacus THE BEST WAY to get attention in the charity world is to say something controversial about public trust.

A few weeks ago Joe Saxton, fundraising guru and boss of think-tank nfpSynergy, hit the charity headlines by proclaiming a haemorrhaging of trust in the voluntary sector. Cue hand-wringing all round and a series of furrowed-brow articles in Third Sector magazine.

Yet this week TS devoted over a page of analysis to a survey which showed the opposite result. According to data released this week by the Charity Commission, trust has actually increased since 2005.

Throw into the mix an oft-quoted YouGov poll from 2007 which showed trust declining at an alarming rate, but levelling-off at a higher level than the nfpSynergy research, and the picture becomes seriously blurred.

Yet some conclusions can be reached.
  1. We should give up comparing the results. Each of the pollsters asked their respondents a different question. YouGov asked “How much do you trust [people who run national charities] to tell the truth?” The Charity Commission asked “How much trust do you have in charities” on a one-to-ten scale. nfpSynergy asked “How much trust do you have in [charities],” with ‘trusting’ people answering either “Quite a lot,” or “A great deal.” Lumping together the results from such different questions answered in different ways is bound to make you confused.
  2. Asking silly questions gets you silly answers. Please tell me if I’m losing the plot, but asking “do you trust charities” (or words to that effect) strikes me as a waste of time. What does it actually mean? What, for example, are respondents supposed to trust charities to do? I, for example, would generally trust charities to spend my money well. But I certainly wouldn’t trust them to sell me a house, or (in some cases) even run their HR departments properly. So do I ‘trust charities’? I haven’t the faintest idea.
  3. The interesting results are deeper down in the research. The Charity Commission’s results are more fascinating the more you look into them. They explain why people trust charities, and why they do not. They show in detail what public attitudes are towards the voluntary sector. And they show that over 90 per cent of people think it’s important for charities to write transparent annual reports (see p.17). This is stuff I could spend days poring over –and the numbers appear more solid than most of the mushy statistics which abound in the charity world.


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Submitted by LMC on Fri, 23/05/2008 - 3:53pm.

OK, finally got around to reading the results.

First up: agree on poor wording of question. Do *I* have trust in charities? Charity as an organisational model - Yes. All charities - No. The charities I support? - Yes (no-brainer). Who knows what was in the respondents' heads when they answered this one.

Second: 1,008 adults. Not a sufficiently large sample. National surveys of this nature should include at least 10,000 in my opinion to be able to truly "iron out" sampling errors and demographic variations.

Third, and most importantly; Where can I get the names and addresses of the "Confident agreers?" Pls post on CD to Trust me, It's For Charity at PO Box ...

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... nearly Vlad the Impaler


Submitted by LMC on Fri, 23/05/2008 - 3:22pm.

Lack of clarity in reporting regulations don't help. SORP is practically incomprehensible to a layperson - trying to get to grips with "the original" made me lose the will to live.

Take insurance for example. Is it an overhead or is it a charitable cost? If a project is running in a building, then a charity could quite legitimately claim that some of the cost of insurance is directly related to a project and therefore a charitable cost - e.g. some or all of the public liability element.  Smart charities do this. But they don't necessarily explain the ins and outs of it very well.

Many charities who Should Know Better (i.e. medium size) are still asking questions which make it clear that they are treating staff salaries as overheads, even if the staff member is doing direct delivery work and that salary could absolutely legally and ethically be treated as a charitable cost.

See Full Cost Recovery website for good methodology on transparent charity accounting. It's not necessarily possible to make rules for how charities account for their costs. But if they are clear as to how they have allocated them and why (transparent), that doesn't matter as it will still be possible to compare.

[1] Core costs.

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... nearly Vlad the Impaler


Submitted by bjornwigeman on Fri, 23/05/2008 - 2:40pm.

The account number in Sweden is called a "90-account". To get it, charities need to send in extensive annual reports showing exactly where the money goes and with the possibility to check that out.  The reports are also made public.

Now that I work with VeoSearch.com towards UK, I've been in contact with the Charity Commission some to understand better how to know what charity to trust. On our site, we need to have credible charities, and no fakes.

In the end, every donor has to take its own responsibility to check out for themselves where they give their money, just like buying a shirt :) 


Submitted by Adam Rothwell on Fri, 23/05/2008 - 2:16pm.

...with you, Ginsters. I should have made exactly that point in my previous comment. 

Adam, Intelligent Giving


Submitted by Ginsters Dragon on Fri, 23/05/2008 - 1:28pm.

Whilst the proportion of income channelled directly to the 'cause' or 'end user' tells you something, it doesn't give anything like the full picture. For example, you could have a tiny charity run on an entirely voluntary basis with virtually no running costs. If it raised £1,000 and spent only £30 it would be hailed as a great success. However, it might be better off investing in ways to make more money even if that skewed the rate of return somewhat. Surely charities are there to make a difference to a particular problem. Being frugal (or being seen to be frugal) is only a means to an end and not the end itself.

 

 

Don't shoot the messenger


Submitted by Adam Rothwell on Fri, 23/05/2008 - 12:58pm.

I had no idea that's how charities in Sweden worked - and it's fascinating stuff. But how does the regulator know that the money is going to the rigt place? From everything I've heard about charity accounting from accountants in this country, it's seemingly easy for charities to call whatever they like 'charitable expenditure' (or at least it was, until the rules changed and almost every cost incurred by a charity became 'charitable' anyway.) Are Swedish accountants just a lot more transparent?

Adam, Intelligent Giving


Submitted by Bjorn Wigeman (not verified) on Fri, 23/05/2008 - 11:25am.

I come from Sweden and am now working for an organisation raising funds for UK charities by people's searches, it's called veosearch.com

In Sweden, we have regulators controlling the charities' activities. If more than 75 or 80 percent of the donations goes directly to the cause and the end user, they are given a certain donate bank giving code which certifies that they are a charity to be trusted, similar to the work of the Charity Commission.

A lot of random charities are still opening up and scamming people but more or less everyone knows not to trust a charity without the certain bank code.


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