Guidance updated as serious incidents in charities go unreported

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The Charity Commission has issued clearer guidance on reporting serious incidents as charities are currently failing to report many instances as soon as they occur, with the regulator warning this can put charities at risk of further harm

The updated guidance includes new tools such as examples and checklists to make it clearer to trustees what they should, and should not, report to the Charity Commission. It also provides greater clarity on incidents resulting in ‘significant financial loss’, making clear that losing significant funding or contracts that the charity cannot replace should be reported to the regulator.

Trustees are no longer required to report if their charity does not have a safeguarding policy in place, as that information is now captured through the annual return.

By reporting these incidents it informs the Commission that the trustees are taking appropriate action to deal with the problem. Reporting an incident can limit the reputational and actual harm to the charity, and allows the Commission to state that the trustees handled the situation responsibly.

Sarah Atkinson, director of policy and communication at the Charity Commission, said: ‘Trustees cannot always foresee or prevent a serious event arising in their charity. What they should do, however, is to act responsibly and quickly when something does go seriously wrong, taking steps to limit risk and protect their charity from further harm.

‘Making an incident report to the Commission is one of the most important ways trustees can demonstrate that they are doing just that. Our updated guidance helps charity trustees understand when and how to submit a report.’

A serious incident in a charity is described as an ‘adverse event, actual or alleged, which results in harm to a charity’s work, beneficiaries or reputation; the loss of a charity’s money or assets, or damage to a charity’s property’.

Serious incident reporting has been increasing steadily year-on-year since 2011-12, when 1,027 incidents were reported, compared to last year’s number of 2,181, but the Commission continues to find events and problems in its case work that should have been reported to the regulator at an earlier date.

How to report a serious incident in your charity – updated guidance, is available here

Amy Austin | Reporter, Accountancy Daily [2016-2019]

Amy Austin was reporter, Accountancy Daily and Accountancy magazine, published by ...

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