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Charity Commission Chair Orlando Fraser: Philanthropy, Trustee Investment, Campaigning And Social Media Guidance – Charities & Non-Profits

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In a busy month for the Chair of the Charity Commission, Orlando
Fraser published a new blog concerning the role of charity leaders in
discourse around the migration and refugee crisis.

The comments were released on the Charity Commission website on
10 March, against a background of the Charity Commission’s
newly published draft social media guidance. Fraser emphasised that
charities “often lead the charge on progress and speaking
uncomfortable truths to power”
and that “when
charities campaign, they do so with the law on their
side”
. Fraser noted that in his role as Commission chair,
he will “stand up for the right of charities to lawfully
campaign… even while some critics seek to question charities’
campaigning role in the refugee crisis”
.

However, he cautioned charities that they must only campaign to
promote their charitable purposes. Specifically, the Charity
Commission Chair warned against the use of “inflammatory
rhetoric”
by charity leaders and encouraged the sector as
a whole to work to “reduce the heated frenzy of aggressive
debates on public policy”
.

Fraser concluded with a call to kindness, respect and tolerance
to be heard by charity leaders, and requested charities balance
their desire to campaign strongly with the need to do so in a
responsible and measured way.

The blog advises charity leaders to consider their approach to
public discourse as a general election approaches and that the
rules on campaigning must be adhered to.

For the full text of the blog post, see here.

In a speech given at the Association of Chief Executives of
Voluntary Organisations ‘festival of leadership’ event on
22 March, Orlando Fraser focused on three key themes: philanthropic
giving, trustees’ approach to investment following the
Butler-Sloss judgement, and the new consultation on the Charity
Commission’s social media guidance.

“The philanthropic culture here in England and Wales
lags behind”

Fraser outlined his personal priority to encourage the
wealthiest in our society to give more to charity. He noted that
“the philanthropic culture here in England and Wales lags
behind those in comparable countries, such as New Zealand and
Canada, and far behind what we see in the US. There was once an
expectation that those who were very fortunate – either in
terms of inheritance, talent or luck – would share the
proceeds of that with others who are less fortunate”
.

“We are confident that our statement in response to
the Butler-Sloss decision was an accurate reflection of that
judgment”

Despite criticism from two grant-making charities that
the Charity Commission guidance on trustee investment (confirmed in
a statement from the Commission following the
Butler-Sloss judgement) is “inaccurate”, Fraser confirmed
that the Charity Commission is “confident” that
its statement on the judgement “was an accurate reflection
of that judgment, and of the law, and that our upcoming guidance
[planned for publication in summer 2023] will be too”
.
Fraser explained that he “understand[s] those who are keen
to promote green investments – but the law is clear that
trustees have very wide discretion in making investment decisions
that are right for their charities, and the Butler-Sloss judgment
has not changed that”
.

For our previous analysis of the Butler-Sloss judgement, see here.

“The [social media] guidance does not change the law or
trustees’ responsibilities under the law”

The Charity Commission’s draft social media guidance consultation
closed in mid-March. The Chair of the Commission reiterated that
while the guidance “does not change the law or
trustees’ responsibilities under the law”
its purpose
is to “support charities to use social media with
confidence, to ensure trustees understand their responsibilities,
and remain risk aware. Including in the context of their staff and
volunteers – people like you – using social media in their
own right”
.

He explained that there is a “clear demand for more
advice in this area [as] 67% of NCVO members polled said they
wanted the Commission to offer specific social media
guidance”
.

Some criticism of the draft guidance has suggested that it is
unduly onerous and will result in charities being silenced –
either by complaints being made against charities or charities
themselves being fearful of the level of responsibility expected by
the guidance.

Addressing that criticism, Fraser said that “knee-jerk
critics of the consultation process”
should bear in the
mind the demand for guidance on social media from the sector. He
continued “I’ve heard some concerns from charities
that the guidance will encourage or facilitate spurious complaints
from those who may want to silence charities they disagree with.
With respect, I think this is to look at the matter through the
wrong end of the telescope. The Commission already receives
complaints about charities, and those involved in charities and
their public statements. Some of those who complain misunderstand
the law and what is expected from trustees”
.

He concluded by saying that he was “grateful to the
many charities who have responded to our consultation, and we are
carefully considering all those submissions in preparing the final
guidance”
.

A summary of Withers’ response to the social media guidance
consultation is included here.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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