By Roberta Fusco, Director of Policy and Engagement at CFG
The Charity Commission has issued supplementary example tables to help Trustees decide if they need to report a serious incident that is related to the coronavirus pandemic. The existing guidance on serious incident reporting continues to be the primary resource to help trustees decide on whether a report to the Commission is necessary. But the supplementary examples help to put it into today’s context, where a sudden income loss of £25,000 or 20% is no longer a matter of exception but the rule.
When preparing the supplementary tables and guidance, we were very pleased that the Charity Commission consulted us and other charity bodies and heeded our concerns. Which was that keeping with the original parameters of ‘serious financial loss’ would create a huge regulatory burden without any real benefit, as it would not highlight those charities at real risk of collapse. Financial serious incidents in the current scenario are about the ability to recover from this economy-wide crisis and the significance of the impact of any losses on the charity and its ability to continue to meet its charitable objectives.
Should a charity need to report, the Commission has an online form, this should be completed as soon as practicable. It is important to explain clearly the action that trustees have taken to mitigate risk and to document the decision-making process clearly.
Read the full guidance which can be found on the Charity Commission website