Beyond the collection tin - Charity Times

September 2017

Insurance:

Finance:

Data:

Interview:

Cyber risk

Social investment

GDPR

Anna Smee

If there is a successful attack there are ways to mitigate the damage

An increasing number of options are available for charities

The key questions posed by forthcoming data protection regulations

The chief executive of UK Youth turned the charity around and looks to the future

Beyond the collection tin Technological advancement continues to change fundraising. The tools may change but the need to value supporters remains the same www.charitytimes.com CHARITY TIMES AWARDS: Shortlist inside

Plus: Sector and investment columns News See page 53 for charity suppliers directory

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W

e take a particular look at fundraising in this edition, specifically how technology is changing the space but not the need to ensure that donors feel valued for their support. There will be an ongoing learning process around this, as charities explore new ways of raising funds. New and emerging digital channels hold great promise for charities’ ability to secure funding. But it is crucial not to throw the baby out with the bathwater, ensuring that the human factor is taken into account. People whose support allows charities to operate should enjoy the experience and be inspired to continue contributing. Technology is an enabler, but it presents risks too. This year has seen cyber attacks take place on a massive scale, and it would be at the very least imprudent not to take all reasonable steps to defend against such breaches. Indeed, the Government is urging all charities and businesses to take action. This issue we look at what charities can do to make themselves hard targets for cyber crime (p27), and the role of insurance in minimising damage and losses if a breach takes place. One thing charities cannot control is regulatory oversight, and incoming data protection regulations will have an influence on all of the above factors and more. Data handling has been to the fore in fundraising for some time, not least after the Information Commissioner’s Office fined a number of high profile charities for breaching data protection rules. The Institute of Fundraising has been helping its members prepare for EU General Data Protection Regulation, and Daniel Fluskey provides some advice on page 31. As he points out, GDPR has wide ranging impact, and it is not only for fundraisers to consider. More on the impact of the changes to a charity’s operations on page 33. Finally, this issue we highlight the charities, organisations, and individuals who have made the shortlist for this year’s Charity Times Awards (p39). Now in their 18th year, the awards once again attracted hundreds of entries this year with most of an impressively high standard. It is, therefore, an achievement in itself for those entrants that have made it to this stage. We look forward to further recognising the best of the sector on 04 October.

John Woods

Publishing Director Mark Evans

Matt Ritchie, Editor

Average net circulation of 8,500 copies for July 15 – June 16

www.charitytimes.com

03

In this issue

Contents

September 2017 06

21

18

News & views Regulars 06 News in brief 11 Diary 12 Appointments Columns 14 Brexit by Caron Bradshaw 15 Fundraising by Peter Lewis 16 Regulation by Gillian McKay 17 Property by Antonia Swinson 50 Charity fund data Charity Services 53 Suppliers Directory 04


Cover 21 Beyond the collection tin Rapid technological advancement continues to change almost all areas of modern life, and fundraising is no exception. But while the tools may change the need to value supporters remains the same

Interview 18 Anna Smee The chief executive of UK Youth and last year’s Rising CEO Star winner managed to turn around a historic charity under extreme financial stress with her passion and strategic vision

In this issue

Contents

31

34

Features 27 A breach too far? There are ways to mitigate the damage of a cyber attack 31 Q&A – GDPR and fundraising Institute of Fundraising Head of Policy and Research Daniel Fluskey goes over some of the key questions posed by forthcoming data protection regulations 44 Maximising your donations through successful CRM Surveying the technology options available, and the questions charities should ask before buying a solution

39

Investment 34 Socialising investment An increasing number of social investment options are available for charities, but variety can also mean complexity and an understanding gap remains for investors and charities alike 47 Being a good loser The core principles of successful investing never change—and never will

Charity Times Awards 39 The shortlist See who is in the running to be recognised at the 18th annual Charity Times Awards www.charitytimes.com

05

News

in brief The chariTy reTail secTor has conTinued To achieve posiTive resulTs despite an uncertain

“The campaigning group said civil society organisations are concerned at

economic backdrop, according to a the scope of delegated powers in new study. The Charity Retail Association’s quarterly market Brexit legislation” analysis, published today, found 67 per cent of the charities in the sample reported positive income growth when comparing Q2 2017 with Q2 2016. This is an improvement on last year when 52 per cent reported to put forward their views on the positive growth in the second quarter European Union (Withdrawal) Bill. compared with the same period in Commonly known as the Repeal Bill, 2015. The report covers 73 Charity the legislation will convert existing Retail Association members EU rules into UK law and formalise The Fundraising regulaTor has representing 5,304 charity shops as at the withdrawal deal. Alliance named The chariTies who have members include Greenpeace, noT paid its year one levy, and those the end of June 2017. It found that the number of retail outlets in the NCVO, Amnesty International, who have either paid or committed sector remained stable, falling 0.1 per Northern Ireland Council for to. The regulator published a list cent. Voluntary Action, and Scottish coveringwin the 1,570 organisations Our audits plaudits when all your Council for Voluntary Organisations. asked to contribute to the year one stakeholders have total confidence In a blog post on Unlock levy, naming 162 charities that have more Than 70 civil socieTy Democracy’s website ahead of the not paid. Of these, 13 have agreed to organisaTions are calling on Bill’s second reading, the pay next year. A further 95 The governmenT to ensure Brexit organisations are in ongoing legislation does not represent a power campaigning group said civil society organisations are concerned at the negotiations with the regulator and grab by Ministers, and sidelining of scope of delegated powers in Brexit are not listed. The regulator said in a the devolved nations. Charities, legislation. The campaign is calling statement that it was publishing the NGOs, and other civil society ETHICAL list “in the interests of transparency organisations have formed an alliance for clear definitions around when ACCOUNTANCY Ministers can edit laws without and fairness”. coordinated by Unlock Democracy SERVICES

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Doing the right thing since 1918

News

in brief

City Bridge trust has awarded over £2.4m in grants to 20 CharitaBle organisations

tackling inequality and disadvantage across London in its latest round of funding. The City of London Corporation’s charitable funder has announced grants including £450,000 to the Participatory City Foundation to deliver the Every One Every Day neighbourhood project. The £6.4m project, across the London Borough of Barking and Dagenham, is jointly funded with the Esmée Fairbairn Foundation and Big Lottery Fund. It will work with 25,000 residents across the borough to create over 350

neighbourhood-led projects and form more than 100 new businesses over the next five years. Young People’s Foundations in the boroughs of Brent, Harrow and Barnet receive £300,000 to continue their work supporting youth organisations across London, in partnership with the John Lyon’s Charity. The foundations provide a collective voice and pool of resources for all the local organisations, large and small, running activities for young people in the boroughs. the third seCtor makes a huge ContriBution to the north west’s eConomy, according to a

new study, but many organisations in the poorest areas are facing a challenging time. Think-tank IPPR North and Durham University surveyed more than 1,400 charities in

the North West, and found the sector contributes around £2.5bn a year to the region’s economy – equal to around a quarter of Liverpool’s total output. The figure does not include

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News

in brief

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indirect economic benefits such as helping individuals back into work. The GovernmenT has announced The biGGesT ever round of uK aid maTch appeals.

International Development Secretary

Priti Patel announced 25 appeals across the whole UK, with up to £30m of funding available to be matched to appeals from September to the end of March next year. More than 20 charities from across Britain have been selected to run UK Aid Match appeals. For every £1 donated to a charity appeal, the Government will also contribute £1 of UK aid. Action Against Hunger’s #HealthyMumsHealthyKids appeal was the first appeal to launch in this round, and runs from 2 September until 2 December 2017. chariTies have been urGed To improve Their cyber securiTy,

after a government study concluded voluntary sector organisations are just as vulnerable to cyber-attacks as businesses. The research, by Ipsos

“Many charity staff are not well informed about cyber risk”

MORI for the Department for Digital, Culture, Media and Sport, found many charity staff are not well informed about cyber risk. Thirty interviews with charities of varying size, cause, and location found considerable variation in awareness levels. A report presenting the study’s findings found that those in charge of cyber security, especially in smaller charities, are often not proactively seeking information and relying on outsourced IT providers to deal with

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News

in brief threats. Where charities recognised the importance of cyber security, this was often due to holding personal data on donors or service users, or having trustees and staff with private sector experience of the issue. Charities also recognised those responsible for cyber security need new skills, the study found, and general awareness among staff needs to rise. Most people under 45 are happy for their parents to leave a charitable gift in their Wills,

according to research from Remember A Charity. The study found two-thirds of under-45s are happy for their parents to leave a charitable bequest, with 9 per cent saying they have actively encouraged their parents to use their Will to do social good. Five per cent of the 1,000 30 to 45-year-olds surveyed said they would be happy for their parents to leave their full estate to charity. Meanwhile, 83 per cent of under-45s said they worry about their financial future, and 67 per cent had scaled down their inheritance expectations. The rising cost of living, social care, property prices, and Brexit were all cited as factors that reduce people’s expectations around what they might inherit. The survey also covered 1,000 over65s, and 53 per cent reported they wished to leave a charitable gift in their Wills. Fifty-three per cent reported that they worry about their financial futures, while 64 per cent have concerns about their children’s finances. the not-for-profit sector is aMong the Worst perforMers for engageMent With Marketing eMails, a study from

the Direct Marketing Association has shown.The DMA’s Email benchmarking report 2017 found marketing emails were opened and

read 14.2 per cent of the time last year, with an aggregate click through rate of 1.6 per cent. However, the not-for-profit sector was the worst performing on open rates, with recipients opening marketing emails 6 per cent of the time. Similarly, charity marketing emails had the second worst click through rate of the sectors covered, at 0.83 per cent. The top three most opened emails were from travel, utilities, and retail brands, at 21.1, 15, and 14.9 per cent respectively. The most clicked-on emails came from utilities, with 2.5 per cent of these communications attracting engagement. Travel was second with a 2.4 per cent click rate. Major charities’ brand iMages May have turned around in the past 12 Months after a challenging

few years, according to YouGov’s latest CharityIndex. The study found Macmillan Cancer Support’s brand remained the strongest of the 50 high profile charities tracked. The CharityIndex score takes into account perceptions of a charity’s quality, value, impression, satisfaction, reputation and whether consumers would recommend the brand to others. Cancer Research UK was in second place with the British Heart Foundation following in third. The remainder of the top five is made up of the RNLI and Marie Curie. The top five remained the same as last year. All charities saw at least a slight improvement in their index score, except Marie Curie which fell from 29.6 to 29.5. WoMen are More likely than Men to donate to charity and

support local causes, new research suggests. A survey of more than 2,000 people has found 54 per cent of women said they had given to a charity collection in the past 12 months, compared with 40 per cent of men. Just over half of women said

they supported small or local charities, compared with 36 per cent of men who said the same. The study, by YouGov for the Institute of Fundraising, found 37 per cent of women reported they would donate to a charity because it was a cause they believed in, compared with 31 per cent of men. Women were more likely than men to say they supported a charity because it had helped someone they know, at 24 per cent compared to 17 per cent. The research did not reach firm conclusions as to why the differences exist, but possible contributing factors cited included fundraising activity being more aligned to the interests or priorities of women. the garden bridge trust is to Wind up. The charity established to

build and run the proposed Garden Bridge in central London said in a statement that the project would be unable to continue due to a lack of support from the Mayor of London Sadiq Khan. The project will be formally closed, which includes terminating contracts, and concluding donor funding agreements before the trust is wound up. daMe kelly holMes trust

announced Gail Scott-Spicer as its next CEO. www.charitytimes.com

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Events

Diary

September 2017

large CharItIes ConFerenCe 27 Sep 2017 The Royal Bank of Scotland, 250 Bishopsgate, London Charity Finance Group’s Large Charities Conference focuses on parallel challenges and transferable lessons, both from within and outside of the sector. It will also explore how a charity can adopt a more agile way of working, using insight to improve performance and contribute to growth. Guest speakers focus in on three key strands: thinking outside of the box, innovation and risk taking and mergers for growth. http://bit.ly/2wlZviX

CharIty tImes awards 04 October 2017 Park Plaza Westminster Bridge, London The Charity Times Awards reaches its 18th year in 2017 and this highly successful, popular, and growing annual gala event will be bigger and better than ever. The Charity Times Awards continue to be the preeminent celebration of best practice in the UK charity and notfor-profit sector, and a key annual event in recognising and celebrating those who make a difference in charities and those who support them. Bookings are open now. www.charitytimes.com/awards/

Better soCIety awards 24 May 2018 London Marriott Hotel Grosvenor Square The Better Society Awards were created to reach out beyond the horizons of any one sector to assess and reward those who are helping create a better, more equal, ethical and sustainable world. The awards are designed to recognise the efforts that commercial companies make to help create a better society for all. With every effort the world becomes a safer, fairer place, and it is time to recognise the work that aids progress to this goal. Entries are open now. bettersociety.net/awards

Not to miss... nPC IgnItes 2017 11 October 2017 Friends House, 173-177 Euston Rd, Kings Cross, London www.thinknpc.org/events/npc-ignites-2017

nCVo/BwB trustee ConFerenCe 2017 14 November 2017 The Brewery, London http://bit.ly/2j9t4bp

money age awards 12 October 2017 Millennium Hotel London Mayfair moneyage.co.uk/awards

CharIty tImes annual ConFerenCe 10 May 2018 Grand Connaught Rooms, London TBC


11

Charity

Appointments

People on the move... The latest appointments from around the charity sector

12

If you have any appointments to announce please contact [email protected]

Jane-claire JudSon Chest Heart & Stroke Scotland has appointed Jane-Claire Judson as chief executive officer. Judson is currently the national director for Diabetes Scotland. Judson is currently a board member at NHS Health Scotland and is on the Scottish Human Rights Commission. Before Diabetes Scotland, she worked for NUS Scotland and at the Scottish Parliament.

Kate Wallace Victim Support Scotland has announced the appointment of Kate Wallace as chief executive. She has 13 years’ experience of leadership roles in the public and voluntary sectors in executive and non-executive roles. She leads Visualise Scotland, which provides services to people living with disabilities and complex needs.

Jeni Graham Battersea Dogs & Cats Home has appointed Jeni Graham as the charity’s new director of finance and corporate services. Most recently, she was director of corporate resources and organisational development and company secretary at Relate. Previously Graham worked for Compassion in World Farming.

Kate hiGGS Ormiston Families has appointed Kate Higgs as director of fundraising and marketing. Higgs was previously head of income generation at Volunteering Matters UK. In this role she grew the team and led on a five year partnership with the People’s Postcode Lottery to boost funding. She has over 30 years of experience in marketing and fundraising in a number of organisations.

Stephen Ballantyne Stephen Ballantyne has been appointed head of fundraising and communications at the Amber Foundation. Ballantyne was most recently executive director of fundraising at Together for Short Lives. There he focused on growing income from big gifts across trusts, companies, individuals and special events.


Charity

Appointments

lindSay levKoff lynn Former Youth United Foundation CEO Lindsay Levkoff Lynn is to join UK Youth as interim CEO. Levkoff Lynn’s past roles include head of impact at Nesta, head of fundraising at The Challenge Network, and consultant at Bain & Company. Current chief executive Anna Smee is on maternity leave from October.

GileS WeBBer Birmingham Dogs Home has appointed Giles Webber as its new chief executive officer. Webber joins from Dogs Trust, where he was operations director. He is a member of the Association of Dogs and Cats Homes Management Committee. The charity rescues and rehomes thousands of dogs across the West Midlands and South Staffordshire each year.

tim Bull Tim Bull has been appointed chair of Kent Community Foundation after The Lady Colgrain stepped down after nearly 12 years in the role. He has been a trustee and the vice chair of Kent Community Foundation for several years. Prior to that, Tim enjoyed a long career with Saga in Kent.

dame mary archer Dame Mary Archer DBE has taken up the honorary role of vice-president of Addenbrooke’s Charitable Trust. Dame Mary has a long-standing relationship with Addenbrooke’s Hospital and the charity, fulfilling the roles of chair of Cambridge University Hospitals from 2002 to 2012 and vice-chair of Addenbrooke’s Charitable Trust from 2005 to 2015.

harold Gittelmon Grief Encounter has announced Harold Gittelmon as its new chair of trustees. Gittelmon, a venture capitalist and serial investor, was CEO of a large duty free retailer for thirteen years until stepping up to chairman last year. He has takes over at Grief Encounter from Jeremy Tobias-Tarsh.

carrie hume National charity Brain Tumour Research has announced the appointment of Carrie Hume as their new head of public affairs and campaigning. Hume has a background in environmental policy and joins from the Marine Conservation Society where she was director of conservation and campaigns. www.charitytimes.com

13

CFG

Column Brexit aim to make Brexit work as Best it Can for Charities

B Caron Bradshaw is Chief exeCutive offiCer of the Charity finanCe Group

14

rexit is a thorny and divisive issue. On both sides there is anger, fear and disquiet; at the result, at the language used in the media, at the pace of implementation. None of us know who is right in this debate because we do not have a crystal ball and we cannot see what’s to come. Thus far commentary on what positions may be taken in negotiations appear to cast more heat than light on the issue. Let me lay my personal cards on the table. I voted remain. If a second referendum were held I would still vote remain. I personally think that the economic ramifications of Brexit are likely to be negative - at the very least in the short term. However my job as CEO of CFG is to park my personal political opinions and objectively assess the position, consider the impact for the charity sector long term and make representations to those wielding power to ensure charities are not unduly prejudiced by Brexit. In other words; to make Brexit work as best as it can for charities. It appears to be agreed by all political shades that the result of the referendum will be ‘respected’ and we will be leaving the EU. It remains to be seen whether the rhetoric will turn into action. We also know that the ‘will of the people’ is fickle and changeable even if MPs, save for a smattering of individuals on all sides, currently seem to be prisoner to the phrase. But it is for our Parliament to determine what happens next. This shouldn’t mean charities should sit back, quite the opposite. Our annual conference Brexit panel unanimously called for charities to make representations to MPs now. The collective complaint was that we are not speaking up enough for our beneficiaries. I implore you to do so. If your beneficiaries will be prejudiced by the restriction of movement of workers, or the flight of EU grants, speak up. Tell MPs. That is your job. Equally if there are opportunities for your individual charity highlight them, speak up. We will keep pushing for a Brexit that delivers the best possible


operating environment for all charities so that they can effectively serve their beneficiaries. Before the referendum, CFG took no position on whether Brexit was a good or bad thing that remains the case. It is not our role to do so. Of course we pointed out the risks and opportunities for the sector as a whole, as well as particular hot spots for sub-sectors. As Brexit negotiations proceed CFG sees the interests of the sector at risk of falling by the wayside. Some have argued that to make specific representations on behalf of charities is inappropriate because the economy should take precedent. But if we’re not in the mix of voices, currently dominated by business interests, then we should not be surprised if the deal struck favours business alone. We should not be so naïve as to think other sectors are not pushing for their own special interests. It is their job, and ours, to ensure politicians are given all the information they need about all stakeholders. It is the politicians’ job to make decisions and trade-offs. We must not self-censor. I argue that it’s CFG’s job to speak up for charities and to make arguments that consider the long term effects Brexit may have on our sector. It is also our job to reach out to those leading the Brexit charge - even if their political opinions and desires may not match ours. It is that thinking that leads us to stick our head above the parapet and say that based on the evidence thus far the lesser long term risk for charities lies in a ‘clean’ exit - one that leaves open and in the hands of our government issues which will dictate our operating environment. One that enables charities to argue the case for EU workers, that enables things like irrecoverable VAT to be challenged effectively and one that tries to ensure we are not saddled with the worst of both worlds. Things may change, and if they do, CFG’s position will reflect that; we always strive to offer a balanced view based on the evidence even when that may be less popular. The clock is ticking. I urge all charities not to leave their representations to the last minute. ■

Fundraising

Column Fundraising small Charities – fundraisinG for the future

M

any of you reading this will have personal experience of the tighter funding environment in recent years. While many charities have faced funding cuts, there is a particular strain on smaller and medium sized charities - a Local Giving survey shows that 78 per cent of local charities expect demand to rise, but only 18 per cent feel resourced to cope with this increase. Less than half feel that they will still exist in five years. As is characteristic of the resilience and grit of the charity sector, we have seen charities working hard to diversify their income and to continue to deliver their important work. One example is smaller charities raising more income from individuals and ‘earned income’, especially through trading and legacies. Across the sector, as funding from statutory sources has reduced, individual donations have remained relatively constant. We all need to support smaller charities to raise the funds they need. It will be no surprise to the charity leaders reading this that investing in fundraising skills and capacity is the one of the most effective ways to build the resources and enhance the sustainability of a charity. On average for every £1 invested in fundraising activity, £4 is received by the charity. This can be much higher, especially for charities who have not done much fundraising before. Increasing a charity’s capacity to fundraise supports its sustainability long-term and gives it the ability to raise funds from varied sources. As our recent report with YouGov showed, supporting a charity to do excellent fundraising has wider benefits for society – 63 per cent of people who donate go on to take additional positive actions, like spreading the word about the cause or volunteering. All this makes a compelling case to support smaller charities by investing more in fundraising training, coaching and mentoring alongside capacity building. At the IoF, we know that this targeted training and skills development works. Our ‘Giving to Heritage’ programme with the Heritage Alliance and funded by the Heritage Lottery Fund, helps

smaller charities in the heritage sector gain the skills required to bring in the funding they need. A look at the case studies from the programme so far demonstrates the tangible difference this programme and training is making. It is not just training in specific fundraising skills that’s important and needed. Many smaller charities need bespoke and long-term support to help establish excellent fundraising practice within their DNA. We are delighted to have a new small charities fundraising programme running in Wales, funded by the Big Lottery Fund. This starts from a fundraising ‘health check’ for the charity to identify their needs and then provides the training, support and ‘executive coaching’ to put this in place. Charities are matched with an expert coach to help them develop a long-term fundraising strategy, skills, and ongoing mentoring. Colleagues at other infrastructure bodies are also providing not just one-off training, but long-term support – which can make a real difference. So what more do we need? Earlier in the summer, we launched a campaign report – Fundraising Support for Smaller Charities. The report highlighted the need for more investment from funding bodies for fundraising skills and training for smaller charities; the need for those commissioning services to think about the longterm sustainability of the sector; and for all those working in this area to hold a summit to identify ways to scale-up and improve support. No one organisation can deliver this – it requires us all to play a role. At the IoF, we are planning to host a roundtable summit in the autumn to bring together key bodies able to support this work and leaders from smaller charities to look at what can be done next to expand support and collaboration for smaller charity fundraising. Small charities already do amazing work contributing to making the world a better place. Just imagine what more they could do if they were all able to undertake excellent fundraising from a wider range of supporters. ■

peter lewis is Chief exeCutive of the institute of fundraisinG


15

ICAEW

Column Regulation charGinG charities for reGulation

T Gillian McKay is the head of charities and voluntary sector at the icaeW

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he Charity Commission is planning to launch a wider consultation into whether charities should be charged fees by the regulator. The proposal has received a generally negative reception from the sector. Objections to the proposal include that fees would be an unfair levy on the sector and present a risk to the commission’s independence. There are concerns that the introduction of such fees would open up the possibility for the government to further reduce the commission’s funding in future. Broadly, the argument for charging charities is that most regulators are funded by the sector they regulate. In addition as the commission is facing increasing pressure on its funding there is an inevitable pressure to make up the shortfall. A comparable body to the commission would be Companies House. Companies House administers the registration of UK companies and maintenance of the UK company register. It charges fees for annual confirmations from companies, incorporation of new companies and other administrative matters, such as changing articles, dissolutions and name changes. The public can use its website and the register to view guidance and company documents, some of this information is free, the remainder available for a fee. Many charities are also companies and already pay annual fees. Companies House charges companies fees for specific services. Fees vary depending on the service and whether the transaction is submitted is digitally or on paper. The two most common fees are annual confirmation fees £13 or £40, and incorporation fees, £10 or £40. At 31 March the register consisted of 3,896,755 companies which generated an income of £67.28M, of which £42.1M came from confirmation fees and £8.1M from new registrations. In contrast the commission does not wish to charge for specific services but rather introduce flat fees. The fees that would be proposed are


yet to be decided. Early indicators suggest that small charities, those with a turnover of less than £100,000 will be exempt, with a sliding scale of fees applying to the remaining charities. The range of these fees vary from the January 2017 estimate of between £60 to £3,000 to the latest estimates of £75 to £1,750. The difference in the proposed fees charged to charities by the commission to those charged by Companies House is eye watering. It is unclear at this point what size of funding the commission is seeking to meet with these fees. At 31 December 2016 the register contained 167,109 charities, 122,695 had annual turnover of, or less than £100,000. Therefore, whatever shortfall is required must be raised from the remaining 44,414 charities. If the target is, for example, £10m, then this would be an average of £225 per charity. If the commission adopts a flat fee approach it will be asking all charities to subsidise its compliance and investigation work including those who are already compliant and well governed. Unfortunately for the sector, the Fundraising Regulator seems to have set a precedent by charging fees to charities engaged in fundraising, regardless of whether those charities have been in breach of regulation. It would be a lost opportunity not to consider alternative funding models in any future consultation. For example would a low fee regardless of size be fairer just for registration? A service fee would avoid the costs of assessing qualifying charities. Would it be reasonable to expect compliant charities to pay for all the costs of compliance and investigation teams? Would a system of fines be more reasonable for charities found to be in breach? Should all documents and guidance continue to be free to all? Could free guidance be limited to charities as part of the registration fee and chargeable to the remainder of the public? The consultation is yet to open but I hope any fee charging system has taken into account alternative sources of income generation and it is clear what any such fee is a payment for. ■

Property

Column Property there is no Golden rule that says poor people must put up with poor property

F

or years my colleagues have worked to build greater understanding of the role of property in delivering community benefit and social mission. Yet so often we come up against a mindset, whether in the private sector, local authorities and even in parts of the charity sector itself, which believes deep down, that poor people must just put up with poor property as well as the local voluntary groups trying to help them. I have even come across funders who have no interest in the property conditions experienced by the staff and beneficiaries delivering the projects they fund. However, this year a sudden game changer has challenged this cosy norm: the Grenfell Tower tragedy. Here was traumatising evidence of what happens when professional people act on assumptions about people living in social housing. Now policy makers, property industry pros and local government officers can only look on in horror as the local people find their voice and at a future hell of legal action and blighted careers. It was lost on no-one that it was civil society that stepped in to serve local need after the rescue services. It was faith groups and professional aid charities that did the practical caring - and let us not forget, played a role just as important as the police in stopping social unrest in the days which followed. So, when did this idea take root that says that poor people don’t deserve proper conditions to live and work in? I have come to the conclusion it is all about a deeply engrained feudalism, probably dating from the arrival of all those Normandy Vikings in 1066 along with their caste system based on land tenure. The very term landlord tells you the position of the tenant. We don’t talk about property suppliers/ owners and clients, do we? Even the term mortgage with its Norman French origin means a bond until death. Since the Battle of Hastings therefore, property has been a means of social control and keeping people in their place. Recent headlines about ground rents on private

property is a classic tale of feudalism. Freeholders - i.e. property companies buying up thousands if not millions of freeholds, can gather income as lords of the land from those burdened by their low interest ‘bonds until death’ who were under the illusion they were owner-occupiers. As for the voluntary sector while there are of course big charity landlords, most voluntary organisations are small and must rent affordable premises for staff and beneficiaries. And my colleagues see all the time just what that means. Over the past six months the Ethical Property Foundation has delivered workshops and advice clinics across the country to local voluntary groups as part of our National Programme for Property Education (www.ethicalproperty.org. uk/nppe). To date we have supported 138 organisations serving over 270,000 beneficiaries, many in areas of multiple deprivation. We have visited local communities with male mortality rates on a par with Rwanda, and learned of the huge differences in male mortality rates between the poorest and richest areas of our cities: in Newcastle for example this is 14 years. We have also found voluntary groups serving local communities in the south west, in premises my colleagues could not believe had not slum cleared back in the 1980s. We work from scratch, building an awareness of the need for good premises management, understanding risk, lease negotiation and what words to use to clothe the concepts and realities of property and land tenure. There is no golden rule that says poor people must put up with poor property. Equally there is no rule that says voluntary organisations working in poor communities must work in rotten property either. So, let us work together to bust these feudal myths and stop history repeating itself. For we all know from our history books just what happens when distorted land values allow the have-mores to feel they are deserving, and everyone else is not. And this is a golden rule: when bricks fly and windows smash, all property bets are off. ■

antonia swinson is Chief exeCutive of the ethiCal property foundation


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Profile

Interview Profile: Anna Smee

Adapting for a bright future The chief execuTive of uK YouTh and lasT Year’s rising ceo sTar winner managed To Turn around a hisToric chariTY under exTreme financial sTress wiTh her passion and sTraTegic vision

U

K Youth is a charity with a history stretching back 106 years and holds with it a legacy of learnings, reputation, dedicated people and a broad network of supporters. As a support charity, UK Youth has thousands of member organisations across the country ranging from regional youth associations, to social enterprises and after school clubs. Chief executive Anna Smee says at its core the charity is about giving every young person a bright future, no matter their background or circumstances. The charity strives to ensure young people can access support, advice and training in their community or online. This is aimed at helping them become motivated, selfaware, receptive, resilient, responsible, confident, and good communicators. The charity also works to ensure young people can engage with education, volunteering and employment. As a result UK Youth has a strong focus on

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social mobility, and through its membership and its own work reaches more than 830,000 young people across the country. But when Smee arrived in late 2014 she found a challenged organisation where team morale was quite low amidst youth sector funding cuts. National government funding for youth provision had been cut, so UK Youth was no longer receiving any central government funding. Smee’s predecessors had already started a shift towards other forms of funding and building relationships with corporates, but it was an uneasy time for the charity, with a very significant deficit by the end of the 2015 financial year. Added to the funding and financial issues, the chief executive and chair both stood down at the same time, for very different reasons. These senior departures were followed by the finance director a few months later.

The recovery Smee’s response was to start gaining a fuller picture of the charity, getting right into the detail, which was, as she says, “Not how I expected to spend my first hundred days – trawling through the accounts!” All nonessential spending, such as travel, accommodation, expenditure on marketing, teas and coffees was frozen as the problem was explored, and an analysis of which teams were generating cash and which were the cost areas was drawn out. From there it was a matter of setting key strategic priorities, and deciding how the charity could meet those while also reducing expenditure and increasing income. Smee and

Profile

Interview

her team identified a couple of core areas of the business that essentially would no longer be viable in the medium-term when looking at where funding was likely to come from over the next few years. This forward facing attitude was a major step to creating a robust model, and Smee worked closely with trustees to agree those areas of the organisation that the charity felt it could afford to lose. But it was also the way that Smee managed the process that is vital: “It’s important to say that the role of UK Youth is vital in terms of supporting community based services for young people, so we wanted to reassure our members that that wasn’t going to change and that we still really valued the relationship we had with them, and we wanted to continue to work through them in a collaborative way.” Acknowledging that it would be easier if the charity had cut membership support and moved towards a direct delivery model Smee felt very strongly that that wasn’t the right approach to take, that UK Youth has always been about working in partnership across the whole of the UK to empower people in the communities who know those communities best. As a result Smee notes: “We’ve had to get better at things like running fundraising events. We do a lot of activity through the year. We’ve grown the portfolio of individual donor fundraising activity, we work with more corporates, we still work very closely with a lot of trusts and foundations. We have really excellent support from people like the Esmée Fairbairn Foundation who cover some of our core costs. That’s hugely valuable.”

impact and measurement UK Youth has increasingly focused on impact measurement to guide its approach and make it more effective. The charity has invested a

lot in the area, and now boasts three full-time impact staff. The data that results from the charity’s impact work helps it tweak or cut programmes where necessary, and supports its communication with beneficiaries, funders and the public. When the charity tells people that its programmes are worthwhile, it has the evidence to back it up. But Smee sees the role of the charity as going beyond its immediate clients and supporters, believing that charities have a role to play in sharing and educating the sector: “At the macro level we’ve got a really important role to play in terms of talking across the sector about the role of impact measurement. A lot of youth charities are doing some really good stuff but they’re beginning the impact journey.” Impact measurement has grown in importance as the sector has been the subject of increased scrutiny in recent years. Smee spies an opportunity for even smaller charities to improve in this area without necessarily going straight to complex and expensive approaches such as randomised controlled trials (RCTs). “What we’d like to communicate to the sector is actually there’s a lot of really good stuff happening already, so we need to get better at www.charitytimes.com

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Profile

Interview

collating this activity at this level, sharing it with each other and using it to learn best practice. Then we need to all go on that growth journey together at a sensible pace. For example, a small volunteer-run local club might be capturing good demographic data on the young people who are visiting them – where they come from, whether they have been on free school meals, whether they are experiencing mental health challenges etcetera. They monitor that, and they look at the impact initially in terms of anecdotal feedback in a simple questionnaire before and after. If we just had data at that level across the country we could start to build up a really interesting picture. The biggest challenge in this area is actually in data capture; it’s around charities being able to invest in IT, being able to collate and analyse data in a professional way, and centralise it and share it.”

new projects Smee and UK Youth recognise the role of technology, as above in collating data and creating a larger picture, but also in the increasing role it plays in young people’s lives. Technology – the internet and social media in particular – has brought great opportunity but also poses risks to young people’s wellbeing. “We’ve just unlocked various pockets of money to work with young people in a very 20


early stage to support them to understand personal safeguarding and also how to thrive in a fast changing world. Both online and offline. We’re already doing a programme funded by Google called Internet Citizens,” she explains. The important new Internet Citizens project is both about helping young people understand the dangers and challenges of the internet, and the positive resource that it can be. “Essentially that is around critical thinking and reasoning; not just taking things at face value – asking questions around what data sources you can and can’t trust, triangulating data, speaking to your friends and family and trusted adults around you to check facts and not just taking things for granted.” A project on coping with the opportunities and dangers of the internet would of course have been unimaginable when UK Youth was formed more than 100 years ago, so a lot has changed. But in many ways the essential work of the charity remains the same – and in no small part due to the outstanding turnaround that Smee and her team achieved – it can continue to play its important role. “Our mission has not changed a huge amount over the last 100 years, but the way we have delivered has changed constantly throughout that time. At the moment we’re a very entrepreneurial organisation, very quick to change and adapt to respond to things to make sure we can deliver against that mission. We’re a very young workforce, we’re high energy and we’re growing. Our strategic plan for the next five years is to continue to do things like what I’ve just outlined, but we’re anticipating that we will grow in terms of staff members and turnover to achieve that mission.” ■

Fundraising

Technology FUNDRAISING

Beyond the collection tin Rapid technological advancement continues to change almost all areas of modern life, and fundraising is no exception. But while the tools may change the need to value supporters remains the same WRIT TEN BY J O E L EP P ER, A F R EEL A NCE J O UR NA L I S T

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rom gaming and online auctions to everyday mobile phone use, charities are becoming increasingly savvy in how they use digital technology to engage with donors. But while the techniques and approaches involved may be new, the traditional ethos of ensuring the donor is at the heart of the fundraising experience and hopefully becomes a long-term giver, remains and retains its importance. Guidance issued by the Commission on the Donor Experience in July laid out to

charities the importance of understanding how the public use technology as well as sticking to time honoured fundraising values. It urges charities to ensure they design digital fundraising with mobile in mind from the outset, as this is where donors are now most likely to access online information. The guidance adds that website visits from phones have surpassed traffic from desktops since 2015. Fundraising content also needs to reflect the public’s appetite for mobile technology by being warm and conversational and involve

short sentences, as people have limited time.

Engagement “Digital fundraising isn’t just about doing a traditional ask for money through a different channel,” says Daniel Fluskey, head of policy and research at the Institute of Fundraising, which has taken over the work of the commission. “It’s about engagement with the cause, it can be funny, interesting, something that the person will want to share or get involved with,” he adds.


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Fundraising

Technology

Oxfam is among those charities to ensure users are at the centre of digital fundraising, and mobile phone campaigning in particular. In January, it launched the My Oxfam app, which is designed to make the giving process easier for donors and appeal to an increasingly mobile-focused public. This includes the ability to swiftly dial up or down the amount they wish to regularly donate and offer the chance to see real life stories about how their money has made a difference. News stories about the latest campaigns, such as urgent disaster appeals, are also included to encourage giving, both spontaneous and long term. Oxfam’s head of digital fundraising Matt Jerwood explains that the app is part of a wider digital fundraising strategy based around traditional values of acquiring and retaining donors as well as encouraging them to participate. This is through four core streams:

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expanding the charity’s reach, optimising the digital technology, enhancing the user experience and being transparent - particularly about how donations are being spent. “In terms of transparency we have a moving map on the app, like the one used in the Indiana Jones films, which the week after someone has donated will track what the money was used for and where it went,” says Jerwood. “It could say something like ‘you gave x amount to us last week, and we have distributed 10,000 toilets to here’.” He says the donation amount dial is particularly important as it helps remove barriers to people giving and offers them greater control. “It may be that people are afraid to commit to giving regularly. We say that’s fine, as it has a dial where they can dial up or down depending on how much they want to give,” he adds. The app also contains a timeline

of the donor’s giving from their first donation, which can date back to its 1942 launch via the charity’s records. There is further transparency by giving updates on how much items donated by the donor to an Oxfam shop sell for. A strong visual and human interest focus to news stories on the app is something its users welcome, says Jerwood. “One of the things that people say is ‘I don’t know where my money goes. I don’t know what you do with it. You’re a big organisation – we don’t see enough faces, we don’t know what’s going on’. “So on the app we are using bite size content that is visually led, showing real people and real stories of change about how their support has made a difference,” says Jerwood. The app also gives the user control over how they like to be

Fundraising

Technology

communicated with, which Fluskey says is important to building trust between charity and donor. “Being honest and transparent in respecting individuals’ communication preferences is at the heart of charities communicating effectively with supporters and are the building blocks for strong relationships between the public and the causes they support,” he says. Oxfam is not disclosing how many have downloaded the app, but says the numbers are in the thousands. Of these around a third have registered with the charity using the app and the engagement rate of either giving money or sharing content is around 15 to 20 per cent. Jerwood adds that the app is helping with a rapid growth of digital fundraising within the charity. Over the past five years the proportion of Oxfam’s fundraising through digital channels has quadrupled from around 5 per cent to 20 per cent. This also includes SMS campaigns, with more than £1m raised through this method over the past year, compared to around £5,000 in 2012.

Online Another growth area in digital fundraising is through online marketplaces such as eBay, which uses PayPal as its payment provider. One of the biggest fundraising organisations involved in this area is the charity PayPal Giving Fund, formerly called Mission Fish, which works with PayPal and its merchant partners to find ways to boost charitable giving. Each year it generates more than $35m in donations to UK and US charities. Paypal Giving Fund chief executive Nick Aldridge says the key challenge of online marketplace

fundraising, such as through its eBay for Charity scheme, is to ensure it attracts donors but does not put off visitors from their original purpose of using the platform - to buy or sell goods. “We don’t want to stop people taking part in an auction online because we have confused them with lots of information around giving,” he says. Key to this is ensuring information is personalised and effectively targeted. “We already encourage that for the eBay for Charity progamme by asking people to pick their favourite charity. They can tell us which charity they want to support and then we will show them those charities as options when they buy in eBay,” says Aldridge. As with Oxfam, PayPal Giving also sees giving users access to their donating history as important to future giving. It already provides this via eBay and is looking to do this through PayPal too. Another strong feature in PayPal Giving’s strategy is to make donating as easy as possible. An example of this is increasing charity interest in PayPal Here, the contactless payment system. “We are seeing a lot of interest in charities as they can just connect it to a mobile phone or iPad and take card donations in person,” says Aldridge. He cites the recent example of animal charity Blue Cross using PayPal Here attached to a card reader on dogs as a particularly innovative way for charities to use this payment technology.

Events Digital technology is also helping to make live charity auction events

easier and more entertaining for donors, by using tablets and big screens with the latest bidding. Givergy is among firms that have been digitising these events in recent years, starting in 2009 in the UK and now operating in New York, Calgary, San Francisco, Toronto, Vancouver, Hong Kong and Sydney, raising £55m for charities last year. “In the old days you had a pen and paper, didn’t know how much was being raised and you had to keep getting up from your table. This gives you a text message if you are outbid and you should bid again. It drums up competitiveness and interest,” says Lisa Vecchio, Givergy’s director of marketing. This can also be tailored to meet the needs of each donor, some of whom may wish to remain anonymous. Givergy has also expanded charity auctioneering to the wider public, with the launch of a dedicated online auction website, Givergy.com, which specialises in raising money for charities by offering unique experiences. The website has around one million visitors a year, 60 per cent from the UK and 40 per cent from North America. The website’s more than 38,000 active bidders raised around £1m in the past year. Recent auctions have included a chance to meet the singer Ed Sheeran, which raised money for the London Irish Centre charity. Another was a Comic Relief prize draw to win the chance to have breakfast with seven actors who have played the lead in Doctor Who. “We have one guy who is a regular giver and bought six holidays as he wanted to give back,” says Vecchio. “You have different


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Technology

personas, young people who will enter five prize draws to meet One Direction and then this gentlemen in his late 50s who wants to give back and was able to surprise his wife with six holidays.” This form of online fundraising also gives the opportunity for donors for one charity to learn about and give money to others. Vecchio cites the example of one donor who came to the site to support an auction being staged by Great Ormond Street Hospital but then saw another staged by the Nicholls Spinal Injury Foundation, which they then became a supporter of. Givergy further enhances the users’ experience by analysing bidding history to ensure they receive tailored emails, such as focusing on sport or entertainment experiences and prizes.

Gaming Charities are also developing fundraising opportunities through video gaming, with the charity War Child, which supports victims of war, one of the most innovative in this field. It has developed a GameOn platform, which links the charity with games developers and gamers


to ensure they are developing fundraising opportunities that will appeal. One of its most recent gaming campaigns developed through this collaborative method is Armistace, which was named Most Innovative Fundraising Campaign at this year’s National Fundraising Awards. This encourages pacifist gameplay through downloadable content and features games including Verdun, the World War 1 battle simulator, which recreates the historical Christmas truce of 1914 where players can swap rifles, play a football match and send Christmas cards to loved ones. “From War Child’s perspective, the gaming industry presents a unique opportunity to engage directly with a huge potential audience about the vital issue of the impact of conflict on children,” says War Child’s gaming partnership manager Wayne Emanuel. “We created GameOn as a platform for the industry and gamers to find out about all of our gaming projects and to act as a place where they can get in touch with innovative ideas like Armistice.” After raising more than £100,000 Armistace will now become a

regular annual campaign and a key part of the charity’s gaming activity, which have raised £2m to date. It is also planning a mobile version of another gaming campaign called Help, where games developers created a bundle of exclusive PC games to buy. “We are also looking into events and merchandise; the aim is to build all new and existing gaming activity, bringing together gamers and the industry to support children affected by conflict,” adds Emanuel. Latest Charities Aid Foundation (CAF) figures show how quickly online giving has grown in recent years, with the proportion of people in the UK donating in this way increasing from 4 per cent to 16 per cent over the last six years. Further research by CAF, in its UK Giving 2017 report, found that 26 per cent of more than 5,000 people surveyed had donated online in the last 12 months. But tapping into this growth need not be expensive, says Jerwood, who says there is an increasing array of ‘off the shelf’ tools and plug-ins available to save on development costs. “We no longer need to develop something. We can just Google it and there are five options ready to go. The biggest challenge we face in digital fundraising is keeping up with the pace of change, but thankfully the development effort required is becoming easier,” he adds. According to CAF’s UK Giving 2017 report cash donations are still the main way of giving. But how long will it be before online donations surpass that, given many charities are already excelling at ensuring donors are at the heart of fundraising’s digital revolution? ■

Fundraising

Platforms advertorial

Three reasons charities enrol with PayPal Giving Fund

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ayPal Giving Fund is a charity that raises funds through online businesses then grants the funds to registered UK charities. It does this through facilitating giving programmes on ecommerce businesses including PayPal, eBay and Humble Bundle. Each online business provides a way for users to donate to PayPal Giving Fund and indicate the charity they would like their donation to go to. Charities need to enrol with PayPal Giving Fund to appear on these online platforms. Once enrolled, PayPal Giving Fund collects all donations made to a charity and pays the charity the total amount monthly. Enrolled charities also receive Gift Aid (where applicable) and donor details (where these are shared by the donor). Since relaunching in 2016, PayPal Giving Fund has seen nearly 4,000 charities enrol in the UK and even faster growth in the US. Here are three of the main reasons why charities are enrolling.

On Humble Bundle – a leading retailer of digital games and eBooks – charities can appeal to new potential donors, who can pick a charity to support through their purchases on the site. eBay enables shoppers to pick a charity to benefit with a donation at checkout, and enables sellers to donate from 10% to 100% of their sales proceeds to benefit charities. PayPal enables its users to pick a charity to benefit online and through the PayPal app. By simply enrolling with PayPal Giving Fund, charities can engage with users of all three platforms and benefit from their donations. The donations raised through PayPal Giving allow us to continue to keep sharing our important mental health messages and to reach a wide audience in creative and engaging ways. - Mental Health Foundation

1. Customer donations Businesses like PayPal and eBay have millions of people regularly using their services. Integrating with these platforms is technically challenging, but PayPal Giving Fund allows one integration to serve many charities by acting as an online portal for donations to other charities. Enrolling with PayPal Giving Fund puts a charity in front of millions of users through one integration.

2. Selling on eBay UK charities enrolled with PayPal Giving Fund raised over £16 million through direct sales on eBay alone in 2016. eBay offers charities a larger marketplace for their goods, and charities can often fetch higher prices for items such as collectables and memorabilia on eBay, than they would in their physical retail shops. What’s more, eBay waives its seller fees for charities enrolled with PayPal Giving Fund, helping

The benefits of the growing fund WRIT TEN BY TAW H EED R A H I M, COMMUN I C AT I O NS EX ECUT I V E, PAYPA L G I V I NG F UND

charities to raise even more. Charitable listings also benefit from increased visibility because of a charity ribbon included on the page listing an item for sale by a charity.

3. No PayPal Giving Fund fees Charities need to open a PayPal account and confirm their charity status with PayPal to enrol with PayPal Giving Fund. The fund does not charge charities fees for services, as PayPal and their other ecommerce partners cover their operating costs. So PayPal Giving Fund’s services to charities are free of signup or subscription fees. Charities can generate additional funds just by enrolling, without them or their donors paying for the service. Education East Africa actively promotes PayPal Giving Fund to our donors as PayPal Giving Fund doesn’t charge us any fees for their services. Our donors are happy, and we receive more funds to improve education in East Africa. -

Education East Africa www.paypalgivingfund.org


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Connect with millions of new donors across

www.paypalgivingfund.org.uk

Cyber

Risk insurance

C

yber-attacks are on the increase, with KPMG reporting an alarming rise in ransomware and distributed denialof-service attacks. Added to this the public sector and not-for-profit sector often do not have the resources to effectively protect themselves, as was sadly demonstrated by the Wannacry attacks. Yet, there is something of a cocktail of survivor bias mixed with ‘cry wolf’ that has left awareness or concern at too a low level; if your organisation has not experienced a major incident, it is easy to believe you never will. As Brian Shorten of the Charities Security Forum notes, of ransomware such as Wannacry, “Ransomware is egalitarian – it does not care what computer systems it infects. It has already been seen to affect NHS systems and other pubic systems that could cause major and life-threatening situations. Charities are not exempt.” As with all things, balance matters. Risk and cost are weighed, and the risks can often be a lot higher than first thought. There are both immediate costs to be met, such as loss of income or operations, and extortion payouts and slow-burn costs, such as loss of reputation, recovery costs and regulatory sanction. Likewise prevention and cure should balance, because all the effort in the world will not stop all attacks, and would be economically unfeasible. Attacks are also not the only challenge. Data breaches from lost laptops, emails sent to the wrong people and malicious breaches from disaffected staff make computers and the internet multipliers of problems. The other side of the equation is remedy, or at least some form of

A breach too far? The threat of cyber crime is not just hype, and protection is the first defence. However if there is a successful attack there are ways to mitigate the damage WRIT TEN BY MA R K E VA NS, CH A R I T Y T I M ES

mitigation, and insurance provides the simple solution to at least aid recovery. David Britton of specialist insurer Ecclesiastical points to the organisation’s own research, “In a recent survey by Ecclesiastical, 84 per cent of insurance brokers listed cyber/internet crime as the number one concern for themselves and their clients.” He continues: “The most recent ICO statistics show that data breach incidents for charities have increased by two thirds on an annual basis (April 2016-17 compared with April 2015-16)” He highlights that ‘accidental’ losses are as important too “It’s also worth focusing on the fact that a lot of these data breach incidents are not those where an ‘attack’ takes place. The highest cause of breach across all sectors was data being sent by email to an incorrect recipient. So the increased use of information technology has changed some of the risks facing charities but good management of data and information remains paramount in all areas as it always has done.”

Can charities better protect themselves? Risk assessment is at the heart of good planning, says Philip Johnson of Unity Insurance Services, but it is complex. Considerations need to

include the governance structure, staff training and a general overall awareness of the threat. Johnson advises: “Look at how the charity transacts its business, review home and mobile working, back up data, control removable media including scanning for malware before importing onto the system. Review the network security and continuously monitor the systems and processes. Maintain secure passwords and firewalls.” All of which makes perfect sense, but the common weakness in all of these is people, who are notorious for putting passwords on Post-It notes and forgetting to run the backup. This means that any policy needs to go beyond any ‘standard’ commercial policy, and that charities face a particularly elevated risk due to the nature of their employment and operations. Gordon Wilmott of Zurich Municipal warns, “The Department for Digital, Culture, Media and Sport released new research suggesting that charities currently lack detailed cyber skills and understanding, which leaves them vulnerable to attack. The charity sector also has faced some criticism around interactions with the public and donors, particularly in terms of acquiring donations and methods of retaining support. It is therefore imperative the third sector insulates


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Cyber

Risk

itself from further criticism related to the use of personal data.” Johnson notes that the incoming General Data Protection Regulation (GDPR) will also increase the risks, with the slow burn costs as well as an Information Commissioner’s Office fine and rules from the Payment Card Industry (PCI) Data Security Standard. The UK is also likely to commit to implementing the EU Network and Information Security (NIS) Directive otherwise known as the Cyber Directive. Despite the UK leaving the EU, the new directive and GDPR will impact organisations from May 2018 when both compliance rules come into full effect. All of this places a considerable burden on any organisation, as both the regulatory landscape changes and the threats shift and evolve. Wilmott believes that flexibility is key: “To be effective, any response protocols and documentation should become an evolving part of the organisation’s operations, developing to reflect the ever-changing exposure. Aside from providing protection against the negative financial outcomes of a cyber-attack, insurance companies can also assist in developing a charity’s cyber strategy. At Zurich Municipal, we use our information governance health check tool to review every aspect of an organisation’s approach to managing information (including cyber). This means our experts can quickly identify any gaps that need to be addressed.” Britton makes a final, often overlooked, point; that it is important to treat security in a ‘whole lifecycle’ method, meaning that a ‘destroy before disposal’ attitude needs to be adopted. “Don’t just delete files or reformat hard


Simple steps charities can and should take: 1. Educate/train employees: Establish a written policy about privacy and cyber security, and make sure this is communicated to all employees and volunteers. Educate employees and volunteers on what types of information are sensitive or confidential and their responsibilities in protecting it. A large proportion of computer viruses attempt to gain access via email through malicious attachments and links. Make sure employees know what to look out for and only open emails from trusted sources. 2. Secure computers: Require the use of strong passwords that must be changed on a regular basis. Keep security patches for your computers and mobile phones up-to-date. Use appropriate firewall, anti-virus and antispyware software and keep virus/spyware definitions up-to-date. Check your software provider’s websites for any updates concerning vulnerabilities or associated patches. Train employees to never leave laptops or smartphones unattended. 3. Safeguard data: Ensure appropriate access controls are in place to protect and secure data. Use encryption to protect sensitive or confidential information stored on portable devices. Reduce your exposure by cutting back on the volume of data you collect and store only what is necessary. With the arrival of General Data Protection Regulations (GDPR) less than a year away, all organisations including charities will be required to put in place tighter controls for the protection of personal data. Charities should be starting their preparation now for the arrival of GDPR in May 2018. 4. Destroy before disposal: Don’t just delete files or reformat hard drives as data can still be restored. Instead use software designed to permanently wipe the hard drive or storage device. Ensure you do this for all equipment not just computers. Be aware of duplicate files being created, for example, photocopiers scan documents and store a copy on the device’s hard drive. 5. Update procedures: Make sure that your procedures comply with any applicable laws or legislation. Also, make sure that they align with any applicable industry required standards such as those that may be required by the Payment Card Industry (PCI) Data Security Standard. Courtesy of Ecclesiastical Insurance

drives as data can still be restored. Instead use software designed to permanently wipe the hard drive or storage devicem,” Britton advises. “Ensure you do this for all

equipment not just computers. Be aware of duplicate files being created, for example, photocopiers scan documents and store a copy on the device’s hard drive.” ■

Risk

Management INSURANCE

Charities can no longer be passive with cyber security

T

wo cyber-attacks, WannaCry and Petya, made headlines earlier this year. But did you know 46% of UK businesses reported at least one cyber breach or attack last year, a 22% increase? Very few attacks were successful, but the volume is significant. Unity Insurance Services knows not-for-profit organisations are not immune to cyber-attacks or data breaches, and their consequences. If your organisation holds customer data or uses computer systems as part of its activities, then it is important to understand the impact of a data breach, interruption to systems or a claim for failing to keep personal data secure. EU General Data Protection Regulations (GDPR), coming into effect next May, place additional responsibility on organisations’ management of personal data. This increase in cybercrime and legislation means that charities can no longer be passive with cyber security and data protection. Cyber risks can fall into three broad categories: direct, malicious cyber-attacks; accidental information loss or misuse; and physical system failures. Cyber-attacks can be severe, causing business disruptions, financial loss, and partial or total loss of data. There can also be ‘slow burn’ costs, including reputational damage and litigation. The average cost of a cyber breach is between £75,000 and £310,000. This does not include costs due to a loss of reputation or business

The steps charities can take to manage cyber risks WRIT TEN BY MA RY T H O R NTO N, I NS UR A NCE O P ER AT I O NS MA NAG ER, UN IT Y IN S UR A NCE S ER V I CES

disruptions. When the GDPR is introduced the fines for noncompliance could be up to €20m or 4% of annual turnover.

Reducing the risks and their impact Firewalls, encryption, robust antivirus software and data backup provisions are obvious first steps in reducing cyber risk, but it is not simply an IT issue. Ensuring the correct governance, management and awareness throughout your organisation are key aspects of cyber security. Simple actions you should take: • • • • • • •

Ensure staff are vigilant and aware of potential threats. Cyber security training should include how to recognise and respond to a cyber-attack. Ensure passwords are secure and regularly changed. Regularly update software. Encrypt all portable devices and consider anti-theft technology. Question security of cloud and other service providers. Incorporate threat of breaches or incidents such as denial of service into your Business Continuity Plans.

losses involving information systems. Therefore, an effective cyber liability insurance policy should form part of your risk management. Cyber liability insurance can compensate for loss of income, and reimburse the costs of repairing, restoring or replacing your websites, computer systems or electronic data if they are damaged by a hacker. Following a data breach, it can pay to defend and settle claims made against your charity for failing to keep people’s personal data secure. Additionally, practical support for forensic investigations, legal advice, notifying customers or regulators, and mitigating reputational damage can be included. Your cyber and data risk management and insurance should relate to your organisation’s own particular needs. You should also review it regularly. As a specialist charity insurance broker, Unity Insurance Services can help you get the right cyber protection for your charity. ■ For more information visit the Unity Insurance Services website or call on 0345 040 7702.

Not all cyber risks can be anticipated or prevented. Also, traditional insurance policies may not cover www.charitytimes.com

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An insurance broker that makes a difference…

As a specialist charity insurance broker, we give you peace of mind from knowing you have the right protection for your charity’s unique circumstances and against growing cyber risks. Unity Insurance Services is a wholly owned subsidiary of The Scout Association. Authorised and regulated by the Financial Conduct Authority, FRN 312976. *Lines are open Monday-Friday, 9am-5pm. Calls may be recorded for security and training purposes.

For expert advice and to get a quote:

Call 0345 040 7702* www.unityinsuranceservices.co.uk/charity-times

Data

Protection GDPR

Q&A – GDPR and fundraising How are fundraisers preparing for General Data Protection Regulation? The key thing people have been looking at is how the changes impact on how you can communicate with supporters, and the lawful conditions for processing data to be able to do direct marketing under GDPR. On a purely legal basis it is not revolutionarily different from what we’ve got at the moment under the Data Protection Act and the Privacy and Electronic Communications Regulations. What is changing? There was a huge amount of confusion around what the changes were, with people believing that after May next year everything was going to have to go opt in. That isn’t the case. But there are changes; the standard for consent has been raised. But it’s more about things slightly tightening up; you have to be doing a little bit more to check that the information you’ve got is up to date and ensure you’re being reasonable and fair in how you use that data. People are more aware about their duties than ever following the ICO’s judgements earlier this year, the forthcoming GDPR, and the changes with the Fundraising Regulator. GDPR isn’t necessarily changing everything, but because people are looking at things in a much more detailed and focused way a few things are coming to the surface which hadn’t been there before. Is there a best practice approach to dealing with the various changes affecting data

Institute of Fundraising Head of Policy and Research Daniel Fluskey goes over some of the key questions posed by forthcoming data protection regulations WRIT TEN BY mat t r i tch i e, ed i to r o f ch a r i t y t i m es

protection? There’s a number of steps organisations can take. This shouldn’t just be a fundraising issue. GDPR goes across everything a charity does. It goes across storing your employees’ data, it will include campaigning information, it includes people that volunteer for you, it includes people you’re selling services to, and beneficiaries. The thing for charities is to take a wholeof-organisation approach to it, and get the right people across the organisation to review how the charity is working and ensure it’s compliant. Where should the responsibility for compliance sit within a charity? It will always be trustees’ legal responsibility to ensure their charity is operating in a lawful way. But in the vast majority of cases it’s not going to be appropriate for the board to be sitting there doing the detailed work on data protection. What they will want is to see that there is a process to work through this within the organisation. Some organisations have got compliance managers, some have data protection officers, but in smaller organisations it’s probably going to be less that it’s one person’s job. It might be looking at who has the right position and skills within the organisation to help

do this, and bringing in relevant teams and people to work out the way forward. It’s not going to be a one-size-fits all model, it’s going to be based on each organisation’s context and circumstance. But the first step is going to be for the organisation to decide on a way forward and then decide on the right actions for them.

How much of a factor is cost going to be in trying to prepare? It can be a factor. Especially if you’re having to upgrade database systems, CRM systems, paying for staff training, paying for legal advice or to get a data protection expert in to give you guidance and advice and do an audit and give you a plan. That won’t be the same for every organisation, but there is definitely a cost of compliance, but that’s something organisations are going to have to manage, it’s not an option to say ‘this costs money so we’re not going to do it’. What are the key messages the institute is delivering to members? There are two things. One is don’t make hasty decisions, because some hasty decisions can cause you long term problems. Understand the different legal bases, understand consent, understand legitimate interest before you make those


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Data

Protection

there are things organisations are going to have to look at and decide their policies themselves. There is an element here where organisations are going to have to take ownership and responsibility and make a judgement call for themselves in a way that’s fair and reasonable for the donor. ■

send direct marketing, but it doesn’t tell you how many times you can email that person and it doesn’t tell you when it runs out. You can look through the whole of the GDPR and it doesn’t tell you when consent ends, but it does say it’s not reasonable for it to last forever. So

decisions. Have a process and discuss it first within your organisation. Also there are areas specifically in fundraising where the law can’t tell you the answer. For example for email marketing the law says you need to have consent to be able to

The ICO’s 12 steps to prepare for the GDPR Consent you should review how you seek, record and manage consent and whether you need to make any changes. refresh existing consents now if they don’t meet the GdPr standard.

Awareness you should make sure that decision makers and key people in your organisation are aware that the law is changing to the GdPr. they need to appreciate the impact this is likely to have.

1

8

Children you should start thinking now about whether you need to put systems in place to verify individuals’ ages and to obtain parental or guardian consent for any data processing activity.

Information you hold you should document what personal data you hold, where it came from and who you share it with. you may need to organise an information audit.

2

9

Data breaches you should make sure you have the right procedures in place to detect, report and investigate a personal data breach.

10

3 Communicating privacy information you should review your current privacy notices and put a plan in place for making any necessary changes in time for GdPr implementation. 4 Individuals’ rights you should check your procedures to ensure they cover all the rights individuals have, including how you would delete personal data or provide data electronically and in a commonly used format. Subject access requests you should update your procedures and plan how you will handle requests within the new timescales and provide any additional information.

5

Lawful basis for processing personal data you should identify the lawful basis for your processing activity in the GdPr, document it and update your privacy notice to explain it.

6


Data Protection by Design and Data Protection impact assessments you should familiarise yourself now with the ico’s code of practice on Privacy impact assessments as well as the latest guidance from the article 29 Working Party, and work out how and when to implement them in your organisation.

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Data Protection Officers you should designate someone to take responsibility for data protection compliance and assess where this role will sit within your organisation’s structure and governance arrangements. you should consider whether you are required to formally designate a data Protection officer.

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International if your organisation operates in more than one eU member state (ie you carry out cross-border processing), you should determine your lead data protection supervisory authority. article 29 Working Party guidelines will help you do this.

Reproduced with the permission of the Information Commissioner ’s O ffice www.ico.org.uk

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Data

Protection GDPR

GDPR and charity personnel

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ith under a year until the General Data Protection Regulation (GDPR) comes into force (25th May 2018), many charities have failed to start planning, some believing, wrongly, that the new regulations won’t affect them. Where preparations have been undertaken, the effort tends to be limited to fundraising and campaigning activities. But personnel will be very much affected as well. In particular, separate data management for staff and volunteers could render charities vulnerable under the new regulation. Under GDPR, new fines will be as high as €10 million or 2% of the offending organisation’s global turnover. And for more serious violations the penalties double: €20 million or 4% of global turnover – whichever is greater. GDPR puts personal privacy ahead of charity interests. This has a huge impact on all organisations, not only in terms of the donor and client data they manage, but more importantly, the personnel data – which could be quite sensitive.

Personnel data The HR team will have an important role to play in protecting the data they hold on employees, volunteers, leavers and applicants. Given the implications to UK charities, this is not something HR professionals can ignore. The organisation will be held accountable if things go wrong. GDPR will change how charities handle personnel data. The main changes are around the way staff and

GDPR does not just affect fundraising. Charities need to consider the regulations’ impact on managing employees’ and volunteers’ personal information WRIT TEN BY CH R I S B ER RY, CEO AT CI P H R

volunteers can access, correct, delete and transfer their details. Another key change includes making sure that permission to process data has, where necessary, been opted-into, and not assumed. Policies will have to clearly communicate what data is being stored, how it will be used and how long it will be held. Charities will also need to ensure that when consent for storing or processing data is withdrawn the affected data is deleted, unless there is another legal basis for retaining it. For those working in HR, this means a rethink about how personal data is collected, used and kept, from handling recruitment and employer references, to monitoring staff and volunteer performance and handling records. Many charities are running separate data sets for paid staff and volunteers which could leave volunteers more open to data breaches. So a key move will be to ensure that that the same protection is being extended to all team members, paid and voluntary, paying special attention to ensuring that those team members with multiple roles, possibly some with a mix of paid and voluntary, are fully protected.

Systems Added to this, new accountability measures will make it important that

systems are in place to show that the regulations are being met. The Information Commissioner’s Office recommends organisations should try to give individuals remote access to a secure self-service system so they have direct access to their own information. Self-service functionality provides transparency and enables individuals to ensure data accuracy. Tools like CIPHR’s SaaS HR system enable employees and volunteers to access and update their own personal information via a secure self-service portal. CIPHR also offers tools that help document when consent from employees and volunteers was granted for processing personal data and has strict policies, procedures and security measures in place which are designed to ensure that clients’ data remains secure. CIPHR’s charity clients include YMCA, Greenpeace, Crisis, St. Mary’s Hospice, Age UK, and Shelterbox. ■ To see how CIPHR can help your charity to process personal data on your employees and volunteers in a way that is GDPR compliant call CIPHR on 01628 814 242 or visit www.ciphr.com

CIPHR A L L

A B O U T

P E O P L E


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Social

Investment finance

Socialising investment An increasing number of social investment options are available for charities, but variety can also mean complexity and an understanding gap remains for investors and charities alike WRIT TEN BY MA R K E VA NS, CH A R I T Y T I M ES

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he desire to find different funding models for charities and other social purpose organisations has been well documented. As often happens financial pressures have increased at just the moment these offerings are appearing, creating an environment where reluctance and hype can obscure real benefits. In principle, social investments combine commercial ‘investment’ with a social return on that investment. Charities, or others, borrow then repay, either without interest such as in a repayable grant arrangement, or with interest to compensate for the investor’s risk.


Potentially they can allow charities to expand and create social value at the same time. A report from Cass Business School’s Centre for Charity Effectiveness, Social Investment as a New Charity Finance Tool - using both head and heart, considers how the sector perceives its current funding models and explores the future of social investment. The report finds that under the current financial strictures, charities are hesitant to take on new forms of funding, calling this feeling ‘inertia’. Whilst the report itself regards social investment as no ‘silver bullet’ it argues that the current tightening of

Social

Investment

money supply might actually be exactly the right time to adopt them. Many charities and trustees have ethical and cultural concerns about borrowing. However, the Cass research points to solutions where working together with the investor to understand investment motivation and aligning this effectively with that of the charity can build trust and effective funding. As the report notes, banks are not the only investors and many charities do not realise that a wide range of potential investors is now open to them. Lack of clarity and misunderstandings run both ways. Mark Salway, director of social finance at Cass CCE explains: “People talk about social impact bonds and social investment focusing on impact. That’s not really want charities want, they want something that makes them more sustainable. You’ve got a whole range of tools. Some of them focus on, for example, fundraising. That could be via a social bond, or it could be something like microfinance.” Despite these obstacles, the market for social investment is building at a rate of 20 to 30 per cent per annum, according to Big Society Capital, reaching £1.5bn. The rate of growth has not matched early hype and been met with disappointment in some quarters, but Salway notes that the expansion so far is in line with the green bond market in its early years. Products also have a wide spread of size, and in particular smaller amounts that are unsecured have created a new opportunity for smaller organisations. A decade ago CAF Venturesome started the process in the UK, but as Whitni Thomas of Triodos Bank estimates, there may now be over a dozen

different loans funds set up lending unsecured amounts alone. “The good news from the market data that BSC has been compiling is that the fastest growing bit of the market has been non-bank lending. If you look at figures from five years ago and the figures today that is the bit of the social investment market that has been growing the most rapidly, enabling charities and social enterprises to borrow, unsecured, relatively small amounts of money.”

Defining social investment Social investment covers investment tools ranging from crowdfunding to simple loans and social impact bonds. What matters is that one size does not fit all and each charity will have a type of social investment that suits them best. A lack of a clear definition of what ‘social investment’ really means has given rise to some confusion. Big Society Capital chief executive Cliff Prior offers this definition: “Social investment is intentional by both the investor and the investee, it’s social mission investors into social mission organisations”. However, elsewhere there is disagreement over whether intent matters on the investor side. Phil Caroe, director of impact finance

at Allia, says the lack of an agreed definition is a barrier. “You can’t use the same word to mean two different things or you just can’t communicate with each other properly,” he says. “That’s one of the problems in the market at the moment, what do we mean and how you get concepts across to people clearly? Also the fact we get annoyed with each other a lot of the time because we’re talking at cross purposes about different things.” The term is also frequently confused with ethical investment, and Prior says a similar problem exists with the concept of impact investment. “Impact investment for us is a broader piece. It would mean that institutions intended social benefit through their investment, but they might deploy it not just through charities or non-profits or social enterprises but perhaps into ordinary companies that are doing good in whichever country they’re interested in. For us social investment is more intentional on both sides, both the investor and the investee.” What is clear is that in order to avoid confusion, nobody can currently rely on any ‘standard’ definition, and that any finance director seeking funding will need to be meticulous in the reading of the terms, as the organisation will need to be in agreeing the exact purpose and alignment with the lender.

Understanding the future Understanding is required from corporates too. In particular it is easy for them to lend to a commercial project that has a clear social, or environmental, goal, but the legal frameworks of charities in the UK and the potential reputational risks


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Social

Investment

can cause some reluctance. Something the government may need to address as funding levels grow. Affordability remains an issue, and Prior believes type-for-type social investment is to be at lower cost than commercial and potentially more flexible in terms of repayment schedules, but costs can still be a barrier. The Big Lottery Fund and the government have therefore created the Access fund, with the ability to blend grants and loans. Blended solutions are clearly one avenue of growth, but there are others: social impact bonds (SIBs) have been used to good effect in Australia and the US, but as Salway notes: “The jury is still out on SIBs, but I think that you will see much more outcomes-based commissioning. You’re already seeing it moving away from grants, moving much more towards payment by results and that’s where SIBs fit in.” Or as Thomas notes: “We think there are some examples of quite good practice around how a social impact bond or a payment by results contract can enable services to be provided that otherwise wouldn’t be provided. We think it definitely has promise.” Technology and tax have led to innovation for centuries, and crowdfunding and tax advantaged investing by individuals are potentially huge areas for development. Combined they also offer the opportunity for locally focussed action, echoing the fundraising developments of recent years. Commercial institutional investment is growing with new impact funds being created, an early success being the Columbia


Threadneedle UK Social Bond fund. “We’re seeing multi-asset funds, equity funds, we’re seeing a range of new funds coming along,” Prior says. “That’s happening in the UK, we’re seeing it as well in the US, it’s happened in Holland, in France, so there seems to be quite a movement. But it’s very early days and just how much impact does there have to be for it to be called an impact fund?”

How impactful is the impact? If the types of potential investment are broad and rather ‘fuzzy’ in definition, it is not the only potential

area of uncertainty, as Salway notes: “It’s interesting because impact is complex. And yet we badge it all under the same thing. I genuinely think investors are just confused. They’re quite confused as to what impact is. When you say to them it’s about the social value you’re creating, they get that. Whereas when you talk about impact it’s so broad that they just don’t get it. I think it’s an understanding gap from both sides.” The reality is that there is no agreed definition, but as Prior explains, there could be a solution across the Channel. The Fondsolidarity fund system is effectively accredited by an organisation called Finansol, with the power to assess how impactful a fund is, and allows it to be in the system. So far over a million people have subscribed with a rumoured €10bn fund created. Caroe thinks the answer might be elsewhere: “finance is a tool; it’s a means to an end. The debate still focuses too much on ‘is social investment working, are people taking it, how much money is being drawn down, what’s the size of the market?’ That’s completely the wrong question, completely the wrong success metric. The real question is how is the sector doing? How are charities coping, are they thriving and surviving? Are they becoming stronger, more sustainable, more diverse? and is social finance helping them play a role in doing that? We’ve had so much focus on trying to make social finance in itself a success, focusing on that end, launching programmes helping people get investment ready, lots of information about investment and so on. But actually a lot of it is presupposing what the answer is.” ■

Social

Investment finance

Social investment for growth Private investment can help put charities on the path toward sustainability WRIT TEN BY WHITN I THOMAS, INV ES TO R R EL AT I O NS MA NAG ER, T R I O D O S BA NK

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ith the challenges the third sector faces, growing a charity depends on stable and diverse income streams. Some charities, such as our customer Emmaus, decide to open more charity shops. Others look to form commercial partnerships, like Berwickshire Housing who partnered with Community Energy Scotland to build a windfarm. The project will supply energy and funding for local affordable housing. The trustees at Scope were more radical. Deciding the traditional charity model is no longer appropriate to deliver their mission, they are shedding service provision and converting to a social business. Importantly, when rethinking how to deliver services, more charities are looking to include repayable finance in their funding mix.

Is social investment right for the third sector? Private investment in the third sector is not without its controversy. A commonly held view, voiced by the social entrepreneur campaign group Senscot, is that there is a fundamental tension between the values of the private and third sectors. One exists to make money, the other to serve society. However, some charities find social investment can free up grants and donations to fund services that

can’t be funded commercially. “In difficult times, we need creative and ambitious solutions,” said Alastair Graham, director of Golden Lane Housing when they launched a £10m bond in 2013. “We are confident that this bond will raise the capital we need to help us support more people than ever, and in turn create a new model for social investment within the charity and housing sectors.”

Types of social investment The most suitable type of social investment depends on the charity. Loans are often used to buy property or other fixed assets, or to bridge gaps between income and expenditure. While interest rates for bank loans are currently low, institutional lenders tend to be more risk averse. Charities will often need to offer collateral, and be in a strong financial position already. Any collateral used to secure the loan may be repossessed if the charity does not keep up with repayments. Charities can also issue bonds to raise social investment. Investors provide the capital to fund a revenue-generating project. The charity pays the investors interest, and repays the capital at the end of the term. Investors are often more comfortable lending on an unsecured basis, but will expect a higher return. Bonds need to be structured to suit the charity’s needs. This includes the

term of the investment, interest rate and plan for repayment of capital. The charity and management team will need a strong track record to gain investors’ confidence. And the charity will need to work with an FCA authorised intermediary to structure and promote the bond.

Case study – SCDA Triodos Bank worked with Southville Community Development Association to raise £560,000 through a bond issue. The capital funded a new community centre and nursery, generating funds to allow SCDA to deliver other services. The bond offered 4% interest per year over six years. It attracted 57 investors, many of whom were locally-based, and was fully subscribed in less than a week. A bond issue will only be appropriate for some organisations. But in these challenging times of a shrinking public and private purse, it’s good to know there are other sources of capital available, even if these have to be repaid. ■ Triodos Bank is a pioneer in the UK’s social investment market, with a track record of using finance in innovative ways to raise capital for charities. Visit www.triodos. co.uk/charitybonds for more information on sustainable funding routes for charities.

Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR3012). Authorised by the Dutch Central Bank and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request. Registered office: Triodos Bank, Deanery Road, Bristol BS1 5AS. VAT reg no 793493383.


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OPEN FOR ENTRIES 8

24 May 2018, London Marriott Hotel Grosvenor Square Celebrating the efforts commercial organisations make to create a better societyociety

Deadline for entries: 26 January 2018 @CTBetterSociety #BetterSocietyAwards www.bettersociety.net/awards

VIEW THE SHORTLIST 4 October 2017 Park Plaza Westminster Bridge, London

18th Annual Charity Times Awards www.charitytimes.com/awards Sponsored by

In association with

@CharityTAwards #CharityTimesAwards

Charity Partner

Shortlist 2017 Charity of the Year: with an income of less than £1 million

Charity of the Year: with an income of more than £10 million

• • • • • • •

• • • • • • •

The Alcohol Education Trust British Hen Welfare Trust The Encephalitis Society Memusi Foundation School Food Matters Time and Talents TimeBank

Charity of the Year: with an income of £1 million - £5 million - sponsored by Quilter Cheviot • • • • • • •

City Year UK The Coalfields Regeneration Trust Contact the Elderly Dame Kelly Holmes Trust FareShare UK The Mix Reprieve

Charity of the Year: with an income of £5 million - £10 million - sponsored by Quilter Cheviot • • • • • • •

The Brain Tumour Charity ClientEarth Good Things Foundation Lepra Lord’s Taverners Phyllis Tuckwell Hospice Care Vista

bpas – The British Pregnancy Advisory Service Disasters Emergency Committee Langley House Trust P3 Thomson Reuters Foundation War Child UK WCS Care

Best New Charity • • • • • •

Binti International The Garden Classroom Go! (Great Opportunities) Together Lucy Air Ambulance for Children Parish Giving Scheme Sapper Support

Change Project of the Year • • • • • •

Ambition School Leadership Cancer Support UK CLIC Sargent Royal Free Charity St Johns Hospice, North Lancashire & South Lakes TwentyTwenty

Rising CEO Star • • • • • • •

Jon Arnold, Tiny Tickers Daryl Brown, Magpas Air Ambulance Yvonne Harrison, GreaterSport Gemma Holding, Cancer Support UK Sandra Schembri, The House of St Barnabas Liz Searle, Keech Hospice Care Caroline Taylor, Essex Community Foundation


Shortlist 2017 Fundraising Team of the Year

Best Use of the Web

• • •

• • • •

Birmingham Children’s Hospital Charity Contact the Elderly Family Holiday Association

Charity Principal of the Year • • • • • • •

PR Team of the Year

Sophie Andrews, The SilverLine Helpline Jonathan Douglas, National Literary Trust Alex Ford, Pancreatic Cancer UK Angela Hughes, Welsh Air Ambulance Charitable Trust Anna Smee, UK Youth Kirsty Smith, CBM UK Sue Threader, The Rochester Bridge Trust

Supporting Executive of the Year • • • • • • •

Charlotte Augst, Richmond Group of Charities Lisa Byrne, Children England Dr James Cusack, Autistica Dr Karen McGregor, Daphne Jackson Trust Charles Newitt, London’s Air Ambulance Clare Normand, The Brain Tumour Charity Antonio Zappulla, Thomson Reuters Foundation

Campaigning Team of the Year • • • • • • •

Independent Age The Mix RedR UK Unicef UK

Bowel Cancer UK The Children’s Society CLIC Sargent MS Society Muscular Dystrophy UK Reprieve Samaritans, Rail Delivery Group, British Transport Police and the Rail Industry Suicide Stakeholder Group.

• • • • • • •

Barley Communications Electrical Safety First Katie Haines Memorial Trust with Golden Goose PR Living Streets Macmillan Cancer Support Naomi House Jacksplace The Scout Association

International Charity • • • •

AfriKids Interpal Media Legal Defence Initiative Shivia

HR Management Award • • •

Addaction Battersea Dogs and Cats Home CAYSH

www.charitytimes.com/awards

Shortlist 2017 Social Investment Initiative • • • • • •

Allia Fair Chance Fund Initiative Family Action Homeless Link Southville Community Development Association Wales Council for Voluntary Action

• • • • • •

• • • • • • •

Community Award •

Corporate Social Responsibility Project of the Year

Port Sunlight River Park – Autism Together and the Land Trust Brathay Trust Dame Kelly Holmes Trust Lifeline Community Projects The Passage (Home for Good) St Joseph’s Hospice Charity Volunteering Matters

Cross-sector Partnership of the Year • • • •

Excellence in Internal Communications

•

• •

•

Alzheimer’s Society Quarriers

•

Best Use of Technology • • • • • • • •

Age UK The Air Ambulance Service Blue Cross Pet Bereavement Support Service Givergy National Trust Royal Academy of Dance seAp Advocacy WCS Care

Barrie Wells Trust and The Jockey Club British Red Cross and Aviva British Red Cross and Marsh & McLennan Companies Northumberland Domestic Abuse Services and RAW London OVO Gives Back with Ovo Energy Shakespeare’s Globe and Deutsche Bank UK Youth and Lloyds Banking Group

Action Against Hunger and Innocent Foundation City Year UK, The National Gallery and Credit Suisse EMEA Foundation Evelina London Children’s Hospital and London Fire Brigade Everton in the Community, Mersey Care NHS Foundation Trust and Edge Hill University Good Things Foundation, Family Fund, Homeless Link, Mind and Big Lottery Fund Hubbub Foundation, Simply Cups and the City of London Corporation The Land Trust, The Conservation Volunteers and Cheshire and Wirral Partnership NHS Foundation Trust

Corporate National Partnership of the Year with a Financial Institution • • • • • • •

BBC Children in Need and Lloyds Banking Group Cancer Research UK and Fidelity International Great Ormond Street Hospital Charity and Morgan Stanley Hospice UK and Clydesdale & Yorkshire Banks IntoUniversity and UBS Marie Curie and Yorkshire Building Society The Royal Marines Charity and Patron Capital


Shortlist 2017 Corporate National Partnership of the Year with a Retailer • • • • • • •

British Red Cross and Co-op Hubbub and Mothercare The International Glaucoma Association and Vision Express Living Wage Foundation and IKEA Macmillan Cancer Support and M&S National Autistic Society and intu National Charity Partnership (Diabetes UK, British Heart Foundation, Tesco)

Corporate National Partnership Champion • • • • • • •

Action Against Hunger and Fourth Action for Children and Fujitsu Malaria No More UK and Fever Tree NSPCC and O2 Unseen and BT War Child and O2 World Horse Welfare and the Mitsubishi Motors Badminton Horse Trials

Corporate Community Local Involvement • • • • • • • •

Berkeley Foundation The Conservation Volunteers and NatWest Hackney Cooperative Developments, UnLtd and UBS School Food Matters and Whole Foods Market School-Home Support and Liberum Capital Scottish Book Trust and Scottish Gas Sported and Deutsche Bank St Giles Trust and The Lancashire Foundation

Advisory Provider of the Year • • • • • • •

Bates Wells Braithwaite CCPAS IFC Oaks Consultancy Ltd Penningtons Manches LLP Price Bailey LLP Triodos Corporate Finance

Boutique Investment Management • • • • • • •

Eskmuir Properties - Diversified Property Fund for Charities James Hambro Partners Mayfair Capital Investment Management Property Income Trust for Charities Rothschild Private Wealth Savills Investment Management The Charities Property Fund Thesis Asset Management Waverton Investment Management

Investment Management • • • • • • •

Barclays Wealth Brewin Dolphin Cazenove Capital Newton Investment Management Quilter Cheviot Rathbone Investment Management Ruffer LLP

Outstanding Individual Achievement •

Determined via sector consultation and deliberation amongst judges. Recipient announced at the ceremony.

www.charitytimes.com/awards

Information

Technology CRM

Maximising your donations through successful CRM Surveying the technology options available, and the questions those responsible for a charity’s IT should ask before buying a solution WRIT TEN BY AN TONY S AV VA S, A F R EEL A NCE J O UR NA L I S T

A

new CRM system certainly has the potential to have a transformative impact on your organisation. It can greatly enhance how your organisation interacts and engages with members and donors. At the same time, it can improve your internal systems, automate your manual processes, and provide insights that can influence how your organisation behaves. Although this is all positive, a project of this nature can also cause internal disruption – it’s not something you want to go through every year. In reality, you should be looking to keep your chosen CRM


system for a number of years for anything between five and 10 years according to some consultants. With that in mind you don’t want to make a poor choice and be left with the negative financial implications of that decision.

Complicated options When you look at the options available however, the selection process can appear complicated, mainly due to the huge number of choices in today’s market. David Curtis, sales manager at IT solutions provider Xperience Group, says: “With a CRM system charities can

create customer and donor journeys to improve fundraising, increasing both loyalty and sales. They are also able to automate supporter and customer communications something as simple as an autoresponse ‘thank you’ email can result in higher customer satisfaction at a lower cost to the business.” Curtis says: “Data is invaluable for fundraising but not-for-profits often fail to integrate it from third party online giving platforms, for instance. Integrating data with a CRM system supports a consistent data management strategy, enabling charities to

Information

Technology

get much closer to supporters with better targeting to capture attention and encourage engagement.” But, he warns: “Implementing the latest and greatest technology however does not guarantee success, often an organisation’s culture needs to change first from the top down in order to thrive in today’s digitally transforming world.” Lucy Hutchings Hunt, managing director at consultancy SYSTEMYZED, says research is key to choosing the right system. “Organisations can waste a lot of time entertaining or persevering with the wrong CRM system but when they hit upon the right one it’s like switching on a light.” Any CRM solution should be able to tell the correct and most up-todate story about a contact’s latest interaction with the organisation, and you don’t want fragmented systems that don’t talk to each other - where differing legacy software platforms store differing bits of client information in lots of different places. “We don’t want this as it wastes administrators’ time, ultimately hinders the smooth delivery of services and skews the overall picture of what is happening at an organisational level,” says Hutchings Hunt.

Going for full integration Andrew Ardron, managing director at CRM vendor ProspectSoft, stresses that systems for charities should provide full integration with other business processes. “Traditional databases will provide not-for-profits with the basic features they may need, like managing direct debits and gift aid. However, investment in a cloud-based CRM system with enhanced accounts

integration and reporting capabilities can be an invaluable business tool. Ardron says: “The most effective CRM solutions will fully integrate ERP (enterprise resource planning), accounting and online systems. This level of integration stops systems working in silos and can transform operations. As a result, call centre representatives, for instance, will be armed with invaluable information regarding a donor, including donation history and how they’ve previously made a payment, whether that’s a cheque, a direct debit or online.” Access NFP, which is a specialist CRM system supplier to charities, says the third sector should also focus on the forthcoming EU General Data Protection Regulation (GDPR) and supplier resilience when considering a CRM system. Graham Hewitt, Access NFP CRM business consultant, says: “With the new GDPR data regulations looming, charities will be thinking about how this will impact their marketing and fundraising. It’s vital they have a CRM platform that has been designed with [data] consent preferences in mind. Otherwise they will face an administrative nightmare. They don’t want to be operating using work-arounds come May 2018 [when the legislation comes into force]. And with resilience in mind, charities will also want to take into account the demise of charity CRM provider Purple Vision, which went into voluntary liquidation this summer. Purple Vision had over 300 customers in the non-profit sector, and they will now be forced to look for alternative solutions in the middle of their ongoing fundraising efforts, which is obviously not welcome.

One size doesn’t fit all What also must be considered is that different CRMs are appropriate for different circumstances, says Hutchings Hunt. “Salesforce is the go to ‘corporate daddy’,” she says, but “it’s pricey and will more than likely be overkill for many charities”. Often a free CRM system - such as Zoho or Hubspot CRM – may do the job for things like getting to grips with client data records, she says. Or a paid-for system with more features, like Infusionsoft, for smaller organisations, may also satisfy demands, she adds - ahead of going for Salesforce to cover bigger or wider workloads. Hutchings Hunt says: “The key is to spend quality time and energy at a high strategic level looking at what the organisation wants to achieve by implementing a CRM, and not to underestimate the time getting to know a new software product will take for team members. “Don’t jump into bed with any CRM platform until you are clear what you want that CRM to do for you. Spend time working as a team, preferably with an objective facilitator doing ‘utopian’ goal mapping.” Such goals could include wanting new customer details to be entered automatically into the CRM system when donors are signed up through a website; the need for administrators to be able to manually reset passwords for the membership site from the CRM system; or wanting to be able to access customer account transaction histories direct from the CRM. Goals like these can then be translated into a technology systems map to be considered by the CRM deployment team. As for features, charities can view


45

Information

Technology

website GetApp.com to compare and contrast functions and to look at reviews written by users. This website includes cloud and on-demand SaaS (software-as-aservice) CRM solutions. The theme of integration and openness is revisited by Haydn Thomas, director of services at Lightful, a social media management platform for third sector organisations. “We’re able to incorporate workflows that should span web, CRM, mobile apps, email, social media and logged-in communities. These workflows are typically disjointed at the moment because the structure of charity teams is based around administration rather than innovation.” He says: “In this context, strategic technology decisions should be based on end-users’ requirements and inspirational supporter experiences, not just by a head of IT or database manager.” To get the full benefits of a CRM system through breaking down data silos and moving to the integration of various business systems, said Thomas, charities need to deploy CRM solutions with open APIs (application programming interfaces) and ecosystems of tools and


developers. At the moment, he says, products such as Salesforce, Microsoft Dynamics or something totally open-source like CiviCRM are the way to go on this front. “We are agnostic when it comes to CRM and other technology, but we use Salesforce because they provide lots of pre-built apps, automation tools and discounts for non-profits,” he says. But as we have heard from others, Salesforce may not be within reach financially for smaller organisations.

Prince’s Trust crowns CRM project The Prince’s Trust recently launched a digital transformation programme in collaboration with Oracle to revolutionise the way it helps disadvantaged young people. Named Project Insight, the programme includes a new website, a new customer relationship management system named Frontline, and a reporting system dubbed Dash, with further developments planned over the next three years. The user-friendly website is easier to access and navigate, and has been optimised for mobile users. Enhanced web enquiry forms make it much simpler for young people to request help and find information on

the charity’s many programmes. The website is also linked to an Oracle CRM platform so that enquiries are instantly passed on to the Prince’s Trust’s outreach team. As a result, the team can more quickly match young people with the best programmes to suit their needs. And as part of the next phase, the Frontline CRM system will allow the charity to better track young people’s progress from the instant they make their initial enquiry through to their move into work, education or training. With this more complete view of young peoples’ journeys the trust says it will be able to deliver a higher quality experience every step of the way. Oracle CRM will also allow the charity to automate the collection and management of its data, replacing manual processes that previously took up a significant portion of its employees’ time. As a result, trust employees will be freed up to spend more time working directly with young people. In addition, the Dash reporting system will eventually enable the trust to produce in-depth reports on its programmes based on information collected by the CRM system. This will allow the charity to more easily evaluate the success of individual services and help it make an even stronger case for additional support from external partners. CRM systems are now increasingly critical for any growing organisation in the third sector. While project budgets available may of course be an overarching factor, the key aims should be data integration and data compliance, and charities should therefore undertake their product research very carefully with a very crowded market to consider. ■

Asset Risk Consultants

Column investment

I

n Charles Ellis’s seminal Financial Analysts Journal article from 1975, The Loser’s Game, he advances the case that investment management has evolved from an activity where skill and diligence are rewarded with out-performance, to one where the costs of portfolio management and execution have risen to a point where the best strategy for effective investment management is to minimise losses. And he makes his case by the creative use of a tennis analogy to illustrate his points. Ellis highlights that tennis is, in fact, two different games depending on your ability. Only those professionals at the very pinnacle of the sport, such as Roger Federer, set out with a game plan of winning more points than their opponent (the Winner’s Game); almost all other players are more likely to be successful by focussing on a strategy of hitting fewer unforced errors than their opponent (the Loser’s Game).

Being a good loser The core principles of successful investing never change— and never will

WRIT TEN BY MA R K J EF F ER I ES, D I R EC TO R –

RE SE AR CH, A R C CO NS ULTA NTS

winning potential or ‘alpha’ comes not just from superior stock selection but from tactical asset allocation. For example, taking a static asset allocation and running a portfolio of exchange traded funds (ETFs) matching that static asset allocation has not delivered consistent outperformance of the average charity discretionary investment portfolio outcome. For multi-asset class investment strategies, using the ARC Charity Indices universe of over 3,000 portfolio outcomes, empirically Ellis appears to be wrong. On average, active and passive strategies have very similar outcomes over the long term. However, suppose avoiding making unforced errors is redefined

to be minimising losses rather than accepting whatever losses the financial markets deliver. Thus, the perfect Loser’s Game would be one where the worst losses are avoided. The typical charity discretionary investment manager serves a community that is particularly sensitive to losses. As a result, the investment philosophies of these managers are often centred on an ‘absolute return’ mind set, the core objective being the compounding of consistent (albeit potentially lower) positive returns and minimising loses. Such an investment philosophy might be described as an archetypal Loser’s Game stratagem. Figure A plots the performance of the ARC Steady Growth Charity

Figure A

Playing the investment management game This concept can be applied to charity discretionary investment managers. For Ellis, active management was analogous to playing the Winner’s Game, with active managers seeking to outperform the market by picking winners. Passive investing was playing the Loser’s Game. In the opinion of Ellis “after adjusting for survivorship bias, taxes, and fees the dominance of index funds reaches insurmountable proportions”. Whilst this analysis may hold for single asset class funds, ARC believes it does not hold for multiasset class portfolios where the www.charitytimes.com

47


Column

Figure B

represents a disastrous pursuit of the Winner’s Game, in which the top 10 winning months are missed. The impact of compounding is evident as the upper boundary pulls away from the ARC Steady Growth Charity index. However, it is also clear from the bar chart (Figure B) that the negative periods of performance are more negative than the positive periods of performance are positive. This outcome is a feature of financial markets – returns are not normally distributed around the mean but exhibit a skew with a higher volume of low positive outcomes, and a smaller number of markedly negative outcomes.

Market fall – Oct 2007 to Feb 2009 Figure C

Index (“ACI”) series from December 2003 to date against the same index with a) the 10 most positive months reduced to zero and b) the 10 most negative months reduced to zero. The resultant ‘funnel’ describes the range of possible returns which might be generated by mixing any 48


combination of these two extreme outcomes. Chart B plots the best and worst 10 months ranked by quantum. The upper boundary of the funnel is the result of playing an almost perfect Loser’s Game in which the worst 10 months are all avoided. The lower boundary of the funnel

Do good losers win? To investigate whether Good Losers deliver superior performance over an investment cycle the performance of charity portfolios with common risk characteristics has been analysed over three different time periods aligned with three very different market regimes. The first period relates to the market fall during the global financial crisis, which stretched from end-Oct 2007 until end-Feb 2009. The second period is the resultant market recovery to endSept 2010. The final period is much longer, running from end-Sept 2010 until end-June 2017, a period that can be broadly characterised as a bull market. Around 2,500 charity portfolios with a track record from 2007 to date falling within the ARC Steady Growth Charity universe were identified. These portfolios were then divided into three equally sized groups based on their risk-adjusted performance during the market fall. The average performance of the portfolios in the top third of outcomes is shown in green (top), the average performance of the lowest third is in red (bottom), and


Column

Market recovery – Feb 2009 to Sept 2010 Figure D

Bull market – Sept 2010 to June 2017 Figure E

the middle third’s average is plotted in grey (middle). As Figure C illustrates, the top portfolios on average fell 6 percentage points less during the market fall than the bottom third. The bottom and middle tercile portfolios marginally outperformed in the market recovery phase (Figure D). This might have been expected, particularly given the speed with which financial market sentiment turned positive and its broad nature. Many of the investments that fell furthest bounced back most vigorously. During the bull market run (Figure E), the top portfolios slightly outperformed but the differential is not that significant. It appears that in the bull market, playing the Loser’s Game was not a handicap for charity discretionary investment managers and may even have delivered a benefit, particularly during market disruption in the second half of 2015.

Conclusions To draw conclusions on the merits of playing the Loser’s Game, consider Figure F that plots the performance of the three sets of portfolios over the three time periods taken as a whole. Full period – Oct 2007 to June 2017. Figure F

• Most of the portfolios that performed best during the market fall are still ahead of their counterparts some 8 years later. • The investment strategy of being a good loser has produced above average returns for charities over the last investment cycle. • Investigating track record for a charity discretionary investment manager during difficult markets provides valuable information for potential investors. ■


49

Charity funds

Data investment

Q2 charity funds review Multi-Asset Funds

Investment Manager

Fund Size (£m)

Cash %1

Bonds %1

Equity1 UK %

Intl %

Barclays Charity Fund

Barclays

151.9

2.6

11.7

47.3

29.1

The Targeted Return Fund

Barings

85.3

14.5

25.9

14

34.3

Armed Forces Common Investment Fund

BlackRock

327.1

-4.3

11.9

38.2

43.1

Charifaith

BlackRock

153.7

3

11.7

45

28.3

Charity Multi-Asset Fund

Cazenove

507

3

1.5

33.8

29

CBF Church of England Investment Fund

CCLA

1,260.20

6.3

0.4

24.6

47.2

COIF Charities Ethical Investment Fund

CCLA

378.2

7.5

0.2

26

45.1

COIF Charities Investment Fund

CCLA

1,893.80

5.2

0.3

24.8

47.7

Amity Balanced Fund for Charities

EdenTree

22.3

0.4

34.4

36.5

24

National Association of Almshouses CIF

M&G

181.9

4.5

23.5

57.6

14.5

Newton Growth & Income Fund for Charities

Newton

707

6.5

11.3

40.6

41.6

Newton SRI Fund for Charities

Newton

101.9

2.3

19.3

33

45.4

Newton Growth Fund for Charities

Newton

47.1

8.6

15.3

32.6

41.6

Active Income and Growth Fund for Charities

Rathbones

164.9

4.5

17.1

25.6

32.7

Core Investment Fund for Charities

Rathbones

34.5

4.3

13

34.1

34.3

Charity Assets Trust

Ruffer

83.7

7

46

11

30

Alpha CIF for Endowments

Sarasin & Partners

1,734.10

4.8

13.9

27.9

37.5

Alpha CIF for Income & Reserves

Sarasin & Partners

136.1

9.4

69.3

9.1

8.7

Peer Group Indices Sterling Cautious Charity Index

ARC

23.4

35.1

4.8

5

Sterling Balanced Asset Charity Index

ARC

13.6

25.3

20.3

17

Sterling Steady Growth Charity Index

ARC

7.5

17.7

36.4

22

Sterling Equity Risk Charity Index

ARC

2.8

9.7

50.2

22.9

Market Indices1

50

UK Equities

iShares

International Equities

iShares

UK Sovereign Bonds

iShares

UK Corporate Bond

iShares

UK Property

iShares

Cash

-


Charity funds

Data investment

Return

Other %1 Last Quarter

Last 12 Months

YTD 2017

Return2 % p.a.

Absolute Risk3 %

OCF

Minimum initial (£)

Minimum additional (£)

4.6

4.7

1.5

17.2

4.8

7.6

7.6

0.38

250,0004

20,000

7.2

4

2.5

12

6.3

6.1

6.3

0.86

10,000

2,000

8.2

2.9

2.1

16.8

7.4

10.1

7.1

0.49

1,000

100

7.4

4.6

2

16.9

5.5

9.1

6.8

0.58

5,000

1,000

10.1

22.6

0.4

14.6

3.7

6.8

6.6

1.3

1,000

500

4.1

17.4

3.1

17.3

6.7

11.6

7.2

0.7

1,000

None

3.8

17.4

2.9

17

6.7

10.8

7.2

0.76

1,000

None

3.9

18.1

2.8

16.1

6.6

11

7.1

0.75

1,000

None

-

4.7

3.5

14

6.3

8

6.7

0.83

1,000

1,000

-

0

2

17.1

4.7

8.1

7.4

0.55

None

None

-

-

1.6

12

6.3

10.8

9.2

0.65

5,000

2,500

-

-

2.2

17.1

6.1

8.9

8.5

0.79

5,000

2,500

-

1.9

2

13.7

6.2

9.8

8.2

0.74

5,000

2,500

8.5

11.6

2

17.8

6.7

8.5

6.8

0.9

10,000

2,000

4.8

9.4

1.8

-

5.6

-

-

0.88

10,000

2,000

-

6

-0.4

6.9

0.6

5.8

5.4

1.15

500

None

8.8

7.2

1.9

14.2

5.8

8.2

7.3

0.98

1,000

250

1.5

2.1

0.3

5.7

2.1

5.9

4.8

1.05

1,000

250

2.7

28.9

0.5

4.8

1.8

3.5

2.4

3

21

1

10.6

3.7

6.1

4.8

3.2

13.2

1.5

13.9

4.8

7.3

6.4

3.9

10.4

1.6

16.6

5.5

7.8

7.6

1

16.9

4.7

6.7

10.2

0.2

22.5

5

15.4

10.2

-1.3

-1

0.3

6.8

7.8

0.6

6.3

2.1

7.7

8.2

2.1

9.1

3.6

5.4

14.9

0

0.2

0.1

0.3

-

Source / Asset Risk Consultants

Property %1

Key 1

2

3

*

The asset allocations presented are based on estimates provided by ARC. The estimates are calculated using statistical methods that attempt to derive a model portfolio whose historical returns most closely match the actual ACI results. Return is calculated as the annualised 36 month return. Absolute Risk is the annualised, 36 month standard deviation of excess returns (fund return less a risk-free rate of 1 month LIBID). For Barclays clients, otherwise £10m


51

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Charity Finance Group (CFG) is the charity that champions best practice in finance management in the charity and voluntary sector. Our vision is of a financially confident, dynamic and trustworthy charity sector. With this aim in sight, CFG delivers services to its charity members and the sector at large which enable those with financial responsibility to develop and adopt best practice.

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Looking for a bank that understands your charity? Unity Trust Bank was rated No.1 for Sector Knowledge in an independent charity banking survey (2014) and was also rated top for Relationship Managers, Fees and Charges and Meeting Expectations. Currently, around 7,000 charities bank with Unity and over 50% of our lending last year was to charitable organisations. Established in 1984, positive social impact and financial sustainability were part of our founding principles. Today, more than 30 years later, they remain core to what we stand for. If you’re a charity, look no further – we’re on the same page.

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Ansvar has over 50 years’ experience of insuring the Third Sector. We have a tailored range of policies to meet the needs and challenges faced by registered and recognised charities, community groups, not-for-profit companies, social enterprises and voluntary groups. Most of our policies are ‘packaged’ for simplicity and value, but we recognise that each organisation is unique and special and provide flexibility to select additional cover as required. Have a look at our website for more information about our products and services – www.ansvar.co.uk

Ecclesiastical Insurance Office

At Ecclesiastical, we’ve been insuring not for profit organisations for 125 years. Today, we insure thousands of the nation’s charities of all sizes and complexities.

Beaufort House Brunswick Road Gloucester GL1 1JZ

Voted best charity insurer* for the last five years running by both charities and brokers, we’ve worked closely with both to develop a flexible, specialist product that meets the varying needs of different types of charities.

Visit our website or talk to your broker to find out more.

We also offer a complete package of guidance and advice that’s there to give you support when you need it.

T: 0845 850 0307 E: [email protected] W: www.ecclesiastical.com/CTimes

Speak to your broker for more information or visit www.ecclesiastical.com/CTimes * In research conducted by FWD, an independent market research company, of those brokers and organisations who named an insurer in the survey, the majority voted Ecclesiastical as the best insurer for charity

Suppliers Directory To advertise in Suppliers Directory contact Linda Libetta +44 (0)20 7562 2431 I N S U R A NC E Stackhouse Poland look after 400 charities and “not for profit” organisations in the UK.

Stackhouse Poland Limited Blenheim House 1-2 Bridge Street Guildford Surrey GU1 4RY T: 01483 407 440 F: 01483 407 441 W: www.stackhouse.co.uk

Our specialist team arrange a broad range of insurance programmes for our charity clients, including property and liability as well as motor, charity trustee cover and travel policies for aid workers, etc. The Company also arranges insurance for a large number of corporate clients and has a specialist private client division advising affluent and High Net Worth clients on their personal insurance needs. Please see our website for the video outlining our services to the Charity sector or contact us to discuss our 10 point Charity checklist for Insurance. Insurance Broker of the Year 2013 Independent Regional Broker of the Year 2007 Finalist Independent Regional Broker of the Year 2009

Unity Insurance Services

Insurance for charities with 100% of our profits returned to charity.

Suites 10 & 10A The Quadrant 60 Marlborough Road Lancing Business Park Lancing, West Sussex BN15 8UW

As a charity owned insurance broker, Unity Insurance Services has a unique insight into your sector. For over 80 years, we have been protecting the people, property, liabilities and activities of charities.

T: 0345 040 7702 F: 0345 040 7705 E: [email protected] W: www.unityinsuranceservices.co.uk

We view each charity as unique so we always aim to provide solutions that fit your exacting needs. That’s why we will spend the time to understand in detail your activities and risks to obtain the best possible cover at the best possible price. Visit our website or telephone to us to find out more.

I N VESTMENT MANAG E ME N T Barclays Wealth and Investment Management 1 Churchill Place, London, E14 5HP For more information, please contact: Kathleen Britain, Head of Charities

Barclays is a transatlantic bank, helping customers and clients achieve their ambitions by offering products and services across personal, corporate and investment banking, credit cards and wealth management. With over 60 years of presence in the sector, the Charities team has nationwide coverage with 20 investment specialists and manages 700 charity relationships making Barclays uniquely positioned to support the UK’s charitable sector.

T: +44 (0)20 3555 8565 E: [email protected] W: www.barclays.com/wealth Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority

Cerno Capital Partners LLP 34 Sackville Street, St James’s London W1S 3ED For more information, please contact Mustafa Abbas, Nick Hornby, James Spence T: 0207 382 4112 E: [email protected] W: www.cernocapital.com

Cerno Capital works closely with charities, helping them organise and manage their investment portfolios. It is our view that the only way to obtain a reliable investment return is to identify the prevailing macro-economic themes and then follow a robust methodology for selecting investments. We take a real world approach to risk, concentrating on the risks of losing money and not just the measurement of volatility. We invest globally, across multiple asset classes and take a long term outlook to wealth preservation and growth. We act as both discretionary managers and advisors to charities.

The 5 Star Service Charles Stanley & Co. Limited 55 Bishopsgate London EC2N 3AS Nic Muston – Director of Private Clients & Charities E: [email protected] T: 0207 149 6610 W: www.charles-stanley.co.uk

We believe that no two charities are alike so we create bespoke investment portfolios designed around each charity’s unique requirements. We support trustees in fulfilling their wide range of responsibilities by providing comprehensive advice that cuts through investment jargon. We monitor risk carefully and have six 5 Star Defaqto ratings for our service. Our 24 local offices access central expertise in: Asset Allocation Ethical Screening Fixed income Passive investments Active fund Research Authorised and regulated by the Financial Conduct Authority


I NV ESTMENT MANAGE ME N T EdenTree Investment Management Ltd

Profit with principles

24 Monument Street London EC3R 8AJ

That is what we aim to deliver. We believe that a company’s business activity, it’s environmental and community impact and the way it interacts with its stakeholders can all positively contribute to returns. This is why these factors are integral to our responsible investment process and why EdenTree Investment Management has won numerous awards for its performance.

Philip Baker Head of Institutional Business Development T: 0800 032 3778 E: [email protected] W: edentreeim.com

Call us to discuss how investing responsibly will benefit your charity, learn how our charitable ownership helps us see things from your perspective and how your investment can make a real difference. EdenTree Investment Management Ltd is authorised and regulated by the Financial Conduct Authority.

C. Hoare & Co.

Stability and Integrity

37 Fleet Street London EC4P 4DQ

We offer charities a full bespoke service across investment management, banking, lending and cash administration.

Simon Barker, Head of Charities T: 020 7353 4522 E: [email protected] W: www.hoaresbank.co.uk

Lombard Odier (Europe) S.A. Queensberry House, 3 Old Burlington Street, London, W1S 3AB Contact: Tom Rutherford, Head of Charities T: 020 3206 6156 E: [email protected] W: www.lombardodier.com/ukcharities

• • • • • • •

Stable family ownership for over 340 years Strong risk-adjusted performance Fully unconflicted with no in-house funds or products Simple fee structure Award-winning service Longstanding connection with the charity sector Values supported by philanthropic family

Investing for impact, with values Lombard Odier is an independent investment manager with a 200-year history of providing stability and investment innovation. Our team provides specialist advice to charities, as well as: •

Bespoke investment services tailored to the priorities of your charity

• Risk-based investment strategy designed to limit fluctuations in portfolio value • Custody services, providing online access and transparent reporting on portfolio performance

Disclaimer: The bank is authorised and regulated by the CSSF in Luxembourg and its branch in the UK by the Prudential Regulation Authority and the Financial Conduct Authority

M&G Investments, M&G Charities Department

With M&G, you’re free to choose from two specialist pooled funds for charities, Charifund and Charibond, or alternatively, invest across our wide range of OEIC funds.

PO Box 9038, Chelmsford CM99 2XF

We’ve been managing charitable funds for over 55 years and now look after £1.4 billion* for charities – making us one of the largest and most experienced managers of these funds in the UK. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.

T: Richard Macey 020 7548 3731 or James Potter 020 7548 3882 E: [email protected] W: www.mandg.co.uk/charities

*As at 31.03.2016. Issued by M&G Securities Limited who is the fund manager and registered in England No. 90776. The registered office is Laurence Pountney Hill, London EC4R 0HH. M&G Securities Limited is authorised and regulated by the Financial Conduct Authority. Charibond’s charity registered number is 271815, and Charifund’s charity registered number is 249958.

Newton Investment Management Jon Bell Newton Investment Management BNY Mellon Centre 160 Queen Victoria Street London EC4V 4LA T: +44 (0)20 7163 2448 E: [email protected] w: www.newtonim.com/charities

At Newton, our sole focus is investment management. We currently manage £55.2 billion for a broad range of clients, of which £4.1 billion is on behalf of charities (as at 30 June 2017). We are a committed and trusted, long-term partner to charities, with a track record of helping them achieve their goals. But we do not stand still: innovation and thought leadership in the charity sector are fundamental parts of our business. We use a distinctive, global thematic investment approach, combined with rigorous analysis of environmental, social and governance issues, in our specially designed charity pooled funds and segregated portfolio services. www.newtonim.com/charities


I NV ESTMENT MA NAG E ME N T Quilter Cheviot

How do you navigate investment challenges & opportunities?

Contact: William Reid One Kingsway London WC2B 6AN t: +44 (0)20 7150 4000 E: [email protected] W: quiltercheviot.com

• Over £1.5 billion of charity assets under management (as at 30/06/2016)

When it comes to investment, we help charities by thinking beyond the obvious.

•

Support for the sector: charity seminars, bespoke investment training, ethical investment expertise and knowledge guides

Quilter Cheviot Limited is authorised and registered by the Financial Conduct Authority

Rathbone Investment Management

Rathbones welcomes charities of all shapes and sizes

8 Finsbury Circus, London EC2M 7AZ

We like to work in partnership with our charity clients which means you will have direct access to the person managing your charity’s investments, resulting in a portfolio that accurately meets your needs and is as individual as your charity.

For further information please contact James Brennan: E: [email protected] T: 020 7965 7102 W: rathbones.com/charities Rathbone Investment Management is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Royal London Asset Management 55 Gracechurch Street London, EC3V 0RL Contact: Alan Bunce, Head of Institutional Business – Direct T: +44 (0)20 7506 6570 E: [email protected] www.rlam.co.uk RLAM is authorised and regulated by the Financial Conduct Authority.

Ruffer LLP 80 Victoria Street London SW1E 5JL For more information contact: Christopher Querée, Investment Director – Head of Charities T: +44 (0)20 7963 8110 F: +44 (0)20 7963 8175 E: [email protected]

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU Contact: John Handford T: 020 7038 7268 F: 020 7038 6864 E: [email protected] W: www.sarasinandpartners.com

Key facts • • • • •

£4.1 billion of charitable funds under management Over 1,000 charities Segregated or pooled investment Dedicated team of charity investment specialists A history grounded in philanthropy

All figures as at 31 December 2016.

Royal London Asset Management (RLAM) is one of the UK’s leading investment companies for the charity sector. RLAM has built a strong reputation as an innovative manager, investing across all major asset classes and delivering consistent long-term outperformance. RLAM manages over £80 billion of assets, split between equities, fixed interest, property and cash, with a market leading capability in sustainable investing. RLAM is proud to manage £3.2 billion in assets on behalf of over 170 charity clients. We pride ourselves on the breadth and quality of the investment options we offer, and we recognise that your main focus is your charitable activity; ours is to construct the best possible investment portfolio, often in multi-asset solutions, to meet your risk and return objectives. Whatever your requirements, we are well positioned to offer a solution. All data as at 31 March 2015.

Ruffer is an absolute return investment manager. Instead of following benchmarks, we build multi-asset portfolios that aim not to lose money on a 12 month rolling basis and deliver a return greater than the risk free alternative of cash on deposit. By aiming to avoid the cyclical gyrations of the market, we aspire to provide a less volatile experience for our clients. This approach has, over the long-term, delivered returns ahead of UK equities and the WM charities benchmark with less volatility. We manage over £20bn of assets, including over £2bn for over 300 charities as at 31 December 2016. We are able to provide fully segregated portfolios for clients and incorporate ethical restraints, either through a segregated portfolio or through our pooled Common Investment Fund. Our dedicated charities team includes a manager responsible for co-ordinating our ESG policies across the firm. We are a signatory to the UNPRI and regularly host conferences and seminars designed to bring charitable organisations together, discussing the key investment challenges they face. Ruffer LLP is authorised and regulated by the FCA

Sarasin & Partners manages approximately 400 charities* with over £6.1 billion in charitable funds*, representing over 40% of the firm’s total Assets under Management. We also manage investments for UK private clients, pension funds, and other institutions with total funds under management of £14.2 billion* (*as at 30.06.2017). Our particular expertise is determining and reviewing the appropriate mix of asset classes suitable to meet the circumstances of each charity. We are well known for our commitment to education having trained over 3,000 trustees. The reference for this training is our Compendium of Investment. Sarasin & Partners LLP is a limited liability partnership incorporated in England and Wales with registered number OC329859 and is authorised and regulated by the Financial Conduct Authority.

Suppliers Directory Toadvertise advertisein inSuppliers SuppliersDirectory Directorycontact contactLinda Sam Ridley To Libetta+44 +44(0)20 (0)207562 75624386 2431

I N VESTMENT MA NAGE ME N T UBS

Charity focused, performance driven

5 Broadgate

Access all the investment insight and guidance your charity needs through our dedicated team of experts, structured and ethical investment process and worldleading research.

London EC2M 2AN Helen McDonald - Director E: [email protected] T: +44 207 567 0241 W: www.ubs.com/charities-uk

Waverton Investment Management 16 Babmaes Street London SW1Y 6AH Contact: Emma Robertson T: +44 (0) 20 7484 2065 E: [email protected]

The value of your investments may fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you invested. Authorised and regulated by Financial Market Supervisory Authority in Switzerland. In the United Kingdom, UBS AG is authorised by the Prudential Regulation Authority and is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Global. Active. Direct. Waverton has been providing charities with investment solutions that are actively managed, directly invested and global since 1986. We combine this investment approach with a highly personal service from charity specialists who take time to understand the unique needs of each client. Waverton offers: • A dedicated charity team • Direct relationship with portfolio managers • Ethical investment screening

• Tailored reporting • Institutional investment process • Trustee training

Waverton Investment Management Limited is authorised and regulated by the Financial Conduct Authority. The value of investment can fall as well as rise and you may get back less than originally invested.

I N VESTMENT RE V I E W S E R VICE S TSA

Independent Charity Reviews

50 Andover Road, Tivoli, Cheltenham, GL50 2TL

TSA provides independent investment reviews and training for trustees to assist with fund management.

T: 01242 263167 F: 01242 584201 E: [email protected] W: www.3sector.co.uk

We can help you with: Reserves Policy Developing a comprehensive Investment Policy Investment policy review – aims & objectives Establishment of investment mandate for your manger to work with. Independent Search & Selection process – designed to help you look for the right manager Continual Trustee guidance to help monitor your investments, and keep up-to date Advice on Ethical & SRI approaches to investment

• • • • • • •

M OBI LE The People’s Operator (TPO) John Finch Partnership Development Officer The People’s Operator 40 Underwood Street London, N1 7JQ T: 0207 251 6648 E: [email protected] W: www.thepeoplesoperator.com

The People’s Operator (TPO) is the mobile network that gives back to causes: 10% of customers’ monthly spend is directed to their cause of choice at no cost to them. In addition, 25% of TPO’s profits are passed to the TPO Foundation to distribute to good causes. TPO offers a great range of Pay Monthly contracts and Pay As You Go bundles, running on the UK’s biggest mobile network, supported 7 days a week by the TPO in-house customer services team. Visit our website today to see how your cause can benefit: www.thepeoplesoperator.com

R E C RU I TMENT CharityJob Hannover House, 76 Coombe Road Kingston upon Thames KT2 7AZ E: [email protected] T: 020 8939 8430

Charity Times has joined forces with CharityJob the UK’s number 1 job site for the charity sector. With an average of 4,000 charity jobs advertised every month and over 350,000 job seeker visits, www.charityjob.co.uk carries more charity jobs than any other UK job board, saving you money and time. To advertise your job vacancies on Charity Times and CharityJob website simply log into your CharityJob account. Alternatively call CharityJob on 020 8939 8430 or email the sales team at [email protected] for further assistance. In order to help you generate the best response to your recruitment campaigns, we have developed a choice of great value job listing products. You’re listing on the Charity Times website is only £65 per vacancy if you book one of the following packages: • Single Listing: £195 + VAT • Enhanced Package: £ 375 + VAT

• Enhanced Plus Package: £475 + VAT • Premium Package: £575 + VAT


S O F T WARE PR O VIDE RS Simply, bluQube is a comprehensive finance and accounting system designed to assist your charity in solving every day financial challenges in a practical and simplified way.

bluQube

The Hophouse The Old Brewery Business Park 7-11 Lodway Pill Bristol BS20 0DH E: [email protected] T: 08456 44 77 88 w: www.bluqube.co.uk

bluQube has been specifically developed to help charities challenge the way they think about finance. Through cloud and browser-based technology with multi-devise access, bluQube transforms finance operations to deliver cross-organisation efficiencies, sophisticated management information and a different way of seeing finance. With a user friendly interface designed to provide your core finance team with all the necessary functionality they need, while remaining intuitive for non-finance budget holders and senior management to tap in and access at a glance information, bluQube will usher in an all new level of efficiency to the way your charity operates. bluQube finance software is developed by Symmetry, based in Bristol.

PS Financials - Powering Better Business Decisions

PS Financials Ltd Park House, Peterborough Business Park, Lynch Wood, Peterborough, PE2 6FZ. Contact: James Vear E: [email protected] T: 01733 367 330

PS Financials have been providing core accounting, purchasing, budgeting and reporting software to the Not-for-Profit sector in 58+ countries for over 12 years. PS Financials has been chosen by all types of Not-for-Profit organisations with incomes ranging from £1 million to over £200 million per annum. PS Financials is developed for the most modern computing environments including the CLOUD, hosted or locally installed environments. PS Financials uses its Unified Ledger design to provide powerful analysis and business intelligence, coupled with instant consolidation, process automation and ease of use.

C harity S olutions Greenacre Associates Ltd

The UK’s top charity experts can help you! Affordable, flexible and practical help from Greenacre on demand services

PO BOX 464 Bridgwater TA6 9GX

Using our large team of professional associates we can deliver tailored support and advice to charities quickly and affordably.

T: 0345 222 1539 E: [email protected] W: www.Greenacregroup.co.uk

Low Development Costs! We have comprehensive materials covering financial management (including independent examinations); project development, management and delivery; fundraising and bid writing; trustee and staff training; risk analysis; and much more. Greenacre Associates Ltd have been providing solutions for the not for profit sector at all levels over the past 5 years. Our Associates are drawn from professional spheres as diverse at Accountants and Lawyers to fundraisers and event managers but all have established experience in this sector and demonstrable track records of achievement.

Advertise your services directly to our subscribers using our Suppliers Directory If you are a supplier to the charity and not-for-profit sector and want to maintain consistent visibility amongst potential customers then why not include your company within the suppliers section of Charity Times. Your entry would be listed for 12 months (print & online) and includes company logo, contact details and company description/products. Charity decision makers use this section to find suitable expert suppliers. So call us on 0207 562 2431 with your details and we will create a listing to ensure that your company is visible within this valuable resource.

Call us on

0207 562 2431


Tell us where you need to go. We’ll help you get there. Investment management for charities, from charity specialists. The route to a secure financial future can be difficult to navigate. At Rathbones we understand this. We work with charities on an individual basis, taking the time to identify the best solutions for a rewarding investment journey.

Talk to us today about where you want to take your charity on 020 7399 0359 or email [email protected]

rathbones.com/charities rathbonegreenbank.com @Rathbones1742 Rathbone Brothers Plc

The value of investments and income arising from them may fall as well as rise and you might get back less than you originally invested. Rathbone Investment Management is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.