Charity Commission CEO David Holdsworth delivers keynote speech to ICAEW Charity Conference

In a keynote speech in the ICAEW Charity Conference, Charity Commission CEO David Holdsworth discussed various challenges and opportunities facing the charity sector.

Key takeaways from 2024

The system of charity accounting and reporting, overseen by the Commission as regulator, helps maintain public trust and confidence in the sector.  Trust is particularly important when you consider the fact that charities in England and Wales rely on public donations of £31 billion and public funds through grants of £6 billion; in total managing over £80 billion in annual income.

39 Statutory Inquiries have been concluded by the Charity Commission since David Holdsworth's appointment as CEO. In addition, the Charity Commission has reviewed and rewritten six pieces of guidance and have others scheduled for 2025.

The Revitalising Trusts programme in Wales, which ensures that dormant charitable funds are spent in furtherance of the trust's objectives, managed to activate £10 million in 2024. Further, 72 inactive Welsh charities have resumed operations.

Future Strategies

Good financial governance also requires, as a bare minimum, a working bank account.  You can expect us to continue to place a spotlight on the challenges, particularly smaller charities, face in this area.  I know there's a session later this morning on this subject that should prove informative.

David Holdsworth emphasised that the Charity Commission will work this year to address the challenges charities face in opening bank accounts.

He further announced that this spring the Charity Commission will be publishing revised guidance on trustee payments and benefits to enhance their clarity to trustees.  Additionally, the Charity Commission will be refreshing their guidance to charities on finding new trustees.

The new guide will provide updated advice around the recruitment process and recruitment strategies in the hopes that trustees will be better equipped to enhancing their boards with a diverse range of skills and experiences.

SORP Reform

The Charity Commission in its role as the joint Statement of Recommended Practice ('SORP')-making body, will soon be launching a consultation seeking views on proposed changes to the Charities SORP. 

The SORP aims to ensure consistency and transparency across the sector, making charity accounts comparable and understandable for donors, beneficiaries, and the public.  The SORP is being updated to reflect the changes to Financial Reporting Standard 102 with the two key areas of change concern changes to lease accounting and revenue recognition.  

In the Charity Commission's strategy which sets their direction and priorities until 2029, David Holdsworth reiterated the Charity Commission's commitment to promoting trusteeship.  He announced that further this goal, the Charity Commission have been working with Pro Bono Economics on an in-depth research project.

The project will assist the Charity Commission to understand the people who become trustees, what skills they bring to the role, where the sector needs more people to lend their professional skills, and to better understand the barriers to trusteeship.

Holdsworth stated that the Charity Commission's full research findings will be published in the next couple of months.

MPs to consider proposal limiting Royal Albert Hall trustees' ability to profit from seat sales

A Charity Commission-backed proposal to limit the Royal Albert Hall's trustees from profiting from selling their tickets to events will be considered by MPs following its approval in the House of Lords.

The amendment aims to address this long-standing issue at the Royal Albert Hall (the 'Charity').  Of the Charity's 24-strong managing council of trustees, 19 possess the right to reserve seats for the most popular and expensive concerts and to sell them on for profit.  The Charity's Council determines which tickets at general events may be reserved for the 'seat holders' or the general public, which some have criticised as allowing the Charity's trustees to generate significant profits.

The amendment was tabled by Lord Hodgson with cross-party support at the bill's third reading on 29 January.  It proposes that any decisions made by trustees that may generate additional income for seat holders must be approved by a subcommittee comprised of independent trustees.  In addition, the amendment proposes that any tickets sold by seat-holder trustees or related parties may only be sold through an existing ticket return scheme operated by the Charity's box office.  The box office would resell the tickets at face value less a handling charge, reducing the profits generated by seat holders. 

The Charity Commission's CEO David Holdsworth wrote to Lord Hodgson in support of the amendment, stating: 'The Charity Commission has been and remains clear that the Royal Albert Hall's failure to resolve the potential conflict of interest to date is of significant concern…, I am supportive of the principle underlying the proposed amendment – to address the potential conflicts of interest insofar as they relate to the exercise of the new power in clause 4.'

The bill will now move on to be considered by MPs in the House of Commons. 

Authored in collaboration with Ethan Lees, a trainee at the time of writing.