david robb: protecting the charity brand: the importance of good governance in turbulent times...
DESCRIPTION
David Robb is CEO of the Office of the Scottish Charity Regulator (OSCR). He is the organisations second CEO, having taken over from Jane Ryder in October 2011. In this presentation David talks about his role at the organisation and his vision for the future.TRANSCRIPT
ICASEdinburgh
6 March 2013
David Robb, Chief Executive, Scottish Charity Regulator
Protecting the charity brand: the importance of good governance in turbulent times
Outline
• Charity regulation – what’s it for?• The first seven years and the next phase of
development• Charity trustees in turbulent times – the
importance of good governance• How can you help?
Charity regulation – what’s it for?
• OSCR established in wake of ‘scandals’• Register unreliable – many inactive charities• Goal: public assurance
The Regulator seven years on
• A solid legacy to build on Accurate Register Regulatory processes established & refined New law interpreted and applied
- The charity test: Protecting Charitable Status, Feb 2012 Good relationships built with the sector and their advisors June 2012: Started online transactions
• Time to take stock, build on our successes by refocusing and reprioritising
Charity Regulator’s objectives
• We must ensure that:– People understand what charities are and what
they do, and can find out which organisations are charities
– Those who run charities understand their responsibilities, and carry them out with integrity
– We act decisively when anyone puts the reputation of charities at risk
The next phase – what to expect
• Continuing review of charities’ compliance• Facilitating compliance: supporting Trustees and Chairs
with guidance and engagement on all aspects of good governance
• Review of compliance monitoring priorities and processes – consultation soon
• Decisive enforcement action• Evolving regulatory framework (SCIOs, new restricted
fund regulations)• Evolving policy context (Hodgson,PASC)
Enduring values
• Fair• Proportionate• Professional• Efficient and effective• Open and accountable
Changing emphasis
• Acting earlier to prevent problems arising• Being more targeted: risk-led and proportionate• Acting rather than reacting – taking the initiative• Using our influence: drawing on our knowledge and
expertise to address issues of public concern
Our vision:
Charities you can trust and that provide public benefit
The G - word
“the systems and processes concerned with ensuring the
overall direction, effectiveness, supervision and accountability of
an organisation”
What duties do charity trustees have?
Four general duties:
1. to act in the interests of the charity and put the interests of the charity before any other
2. to ensure that the charity operates in a manner consistent with its purposes
3. to act with due care and diligence
4. to ensure that the charity complies with the Act and with other relevant legislation
Good Governance“Acting in the interests of the charity”
Know your charity
Decisions effectively
implemented
Compliance with the law
Know your partners Strategic
approach and overview
Due diligence
Developing relationships
Effective structures
Adequate resources
Managing change
Risk & control procedures
Commercial activities
Trustee induction
Agreements and contracts
Good governance – focus points (1)The charity’s governing document:
– Know what it is! – Understand the provisions and how they work– Think about whether it really works for the charity or
whether it could be improved
The interests of charity trustees: – Maintain a register of interests – Manage conflicts of interest and agree a code of conduct
Good governance – focus points (2) Care and diligence:
– Understand the financial position of the charity – Ensure appropriate policies, contracts and agreements are
in place which are regularly reviewed– Take professional advice if required
Collective responsibility:– Trustee misconduct procedures in place – Ensure the governing document has power to remove
trustees where there is serious or persistent breach of charity law
Challenges for charities (1)
“The charitable sector has been hit very hard by this recession. The combined forces of rising demand, rising costs, falling income and restricted credit create a highly challenging set of circumstances. Although more people require the sector’s services, falling asset prices, smaller private sector salaries and lower commercial profits have all reduced its income.” ACEVO
Challenges for charities (2)
• Funding pressures• Service pressures• Increased competition• Policy changes• Constitutional changes
Weathering the storm
• Be strategic • Challenge, and support your executives• Plan for ongoing difficulties, not just a short term
dip in income• Be prudent about your reserves• Be creative, and consider collaboration• Manage risks responsibly, don’t be risk averse• Keep on providing public benefit
“The quality of relationship between the chair and CEO reflects the quality of
governance within an organisation. It is a fundamental building block on which the
governance structures and practices rest. The relationship is particularly crucial… because the chair and CEO… occupy
important leadership roles.”ACEVO
Chairs & CEOs matter
How you can help the Regulator
• Understand your responsibilities – use our online guidance if unsure
• Give us feedback on our performance• Engage in our consultations• Go online and encourage others to do so• Alert us to any concerns • Help us protect the charity brandCharities you can trust and that provide public benefit.