📰 Sector News & Insights

1. UK Charity Commission Emphasizes Focus on Core Missions

Orlando Fraser, the outgoing chairman of the UK Charity Commission, has underscored the importance for charities to concentrate on their foundational objectives and avoid entanglement in divisive political debates. He highlighted the necessity of maintaining public trust by steering clear of "culture wars" and ensuring that charitable activities align with their core purposes. Fraser also pointed out the sector's significant growth, with income doubling since 2010, while the Commission's staffing has decreased, emphasizing the need for efficient governance and oversight. (The Times)

2. Labour Government Aims to Reinforce Charities' Role in National Life

Culture Secretary Lisa Nandy announced plans to reintegrate charities into the heart of national affairs, advocating for their active participation in public discourse and policy critique. The initiative seeks to empower charities to voice concerns on issues like immigration and the environment, recognizing their vital role in a healthy democracy. However, the plan currently lacks specific financial support, raising concerns amid rising operational costs and increased demand for services. (The Guardian)

3. Enhanced Oversight for Door-to-Door Fundraising

Following investigations into aggressive fundraising tactics, the Fundraising Regulator has implemented stricter guidelines for door-to-door charity collections. Charities are now required to ensure better oversight of subcontracted fundraising firms, provide comprehensive training to fundraisers, and adopt fair payment models to prevent unethical practices. The move aims to uphold public trust and ensure ethical conduct in fundraising activities. (The Times)

4. New Internal Audit Code of Practice Introduced

In response to recent corporate failures, the Chartered Institute of Internal Auditors (IIA) has introduced a new Internal Audit Code of Practice. The code urges auditors to explicitly assess a range of risks, including organizational culture, climate change, artificial intelligence, cybersecurity, fraud, and economic crime. While compliance is voluntary, auditors will undergo assessments every five years to ensure adherence to the code, aiming to bolster corporate governance and restore public trust. (Reuters)

5. Global Risks Report 2025 Highlights Emerging Threats

The World Economic Forum's Global Risks Report 2025 identifies state-based armed conflict, extreme weather events, and misinformation as top global risks. These challenges underscore the need for NGOs to enhance their risk management frameworks to navigate an increasingly volatile environment. (World Economic Forum)

🌍 International Developments in NGOs and Charities

1. Haiti Gangs' US Terrorism Designation Risks Hindering Aid Efforts

The United States has designated two major Haitian gangs, Viv Ansanm and Gran Grif, as terrorist organizations to curb their financial support. While aimed at combating violent crime, NGOs warn that this move could inadvertently hinder humanitarian aid delivery in gang-controlled areas, exacerbating conditions for vulnerable communities. Aid organizations emphasize the need for nuanced approaches that address root causes like arms trafficking and socioeconomic marginalization. Reuters

2. China's Use of State-Affiliated NGOs to Influence U.N. Proceedings

Investigations reveal that China is deploying state-affiliated NGOs to disrupt U.N. human rights proceedings in Geneva. These organizations, often extensions of the Chinese Communist Party, attend sessions to counter criticism of China's human rights record and monitor activists. This strategy raises concerns about the integrity of international human rights discourse. The Washington Post

3. Funding Threats to Environmental NGOs in Europe

Rightwing Members of the European Parliament are proposing a significant funding freeze for environmental NGOs, potentially cutting up to 70% of operating grants for 30 organizations. This move, part of broader efforts to weaken the European Green Deal, could undermine civil society's role in advocating for environmental policies. Theguardian.com

4. ActionAid UK Faces Internal Crises

ActionAid UK, a prominent charity, is grappling with internal divisions, financial instability, and leadership turnover. Described as "broken" by its co-chief executive, the organization faces challenges including an unsustainable deficit and allegations of a toxic workplace culture. These issues highlight the importance of robust governance and risk management in maintaining organizational integrity. Thetimes.co.uk

5. 2024 Marks Deadliest Year for Aid Workers

With 187 aid workers killed by late August 2024, the year is on track to be the deadliest for humanitarian personnel. Most fatalities occur among local staff in conflict zones like Gaza, Sudan, and South Sudan. The increasing risks underscore the need for enhanced security measures and support for frontline workers. (The Guardian)