The document discusses the risks charities face from negative media attention. It notes that while some say "any publicity is good publicity", charities are held to high standards by the public. The document provides tips for charities to mitigate risks, including having good governance practices, conducting media training, and being prepared to respond to issues openly and honestly. It stresses the importance of putting the charity's interests first to avoid conflicts of interest or regulatory issues.

1. Giselle Davies
Partner, Head of Charity Law & Social Enterprise Team
15th March 2016
Charities in the glare of the Media
Martin Shipton
Chief Reporter, Western Mail Newspaper

2. Media Attention v Free Publicity!
“There’s no such thing as bad publicity”
attributed to Phineas T Barnum
“The only thing worse than being talked about is not
being talked about” Oscar Wilde
“There's no such thing as bad publicity except your own
obituary” Brendan Behan
“I don't care what they say about me as long as they
spell my name right."
attributed to Phineas T Barnum

3. Media Attention v Free Publicity!
Therefore:
“Any publicity is good publicity” ?????????????

6. Why “attack” charities?
Public expectation of charities and charity trustees
• High, verging on sainthood
• Should be better than others
• Perfection
• “They are spending public money not their own”
• “They expect me to give them my hard earned cash”
• “They set themselves up as being better than the rest
of us”

8. So what is the public interested in?
• Poor fundraising practice?
• High salaries?
• Poor governance?
• Personal/self interest?
• Hypocrisy?
Or is the real story that the public is simply fed up with
big charities which look little different from commercial
organisations?

10. But, no one IS perfect!
So, anticipation and preparation are vital ….
• How do you mitigate the risk of unwelcome
publicity?
• What do you do if the Media is interested in you
for all the wrong reasons?
• Does your risk audit include the risk arising from
unwanted publicity?
• Take a look at yourself with the critical eyes of an
outsider – what do you see?
• Has anyone had media training? Who?

11. Mitigating the Risk - Best Practice in
Charity Governance
What are the risks of poor governance & practice?
• Reputational damage – MEDIA attention!!
• Loss of funding / donations
• Charity Commission investigation / sanction / closure
• In some cases, personal liability

12. Mitigating the Risk – Charity Governance
– The Essentials
Remember - Validly appointed Trustees:
• Know the governing document
• Know the objects & beneficiaries
• Ensure activities further objects
• Ensure activities/objects meet Public Benefit Test
• Operate effective management & financial controls

13. Trustee Role - Basics
Charity Trustee Role = Voluntary in nature
But,
Lack of payment = no excuse for not doing the “job”
properly
“The buck stops here”
• Oversight and supervision
• Ultimate responsibility

14. Charity Trustee Legal Responsibilities
Too much to know everything expected of you!
• Charity Law
• Trust Law
• Company Law
• Other relevant laws (Data Protection ………)
Statute Law and Case Law, Regulations, Guidance,
Best Practice Advice = Information overload!
But, you must:
Know the basics, take and follow advice, apply
common sense, be prepared!

15. Division of Responsibilities
Trustees Staff
Strategy Recommend
Policy Undertake
Supervision Report (back to Board)
OR
Decide (and delegate) Do: Carry out (tasks)

16. Charity Governance – Bedtime reading?
Good Governance – A Code for the Voluntary and
Community Sector
• 6 Principles
• http://www.governancecode.org/
CC10 – Hallmarks of an Effective Charity
• 6 hallmarks!
• http://www.charitycommission.gov.uk/detailed-
guidance/managing-your-charity/the-hallmarks-
of-an-effective-charity-cc10/

17. The 6 Principles of Good Governance
“An effective board will provide good governance
and leadership by:
• Understanding their role
• Ensuring delivery of organisational purpose
• Working effectively both as individuals and a
team
• Exercising effective control
• Behaving with integrity
• Being open and accountable”

18. Hallmarks of an effective Charity – CC10
6 Hallmarks
• Clear about purpose and direction
• A strong Board
• Fit for purpose
• Learning and improvement
• Financially sound and prudent
• Accountable and transparent

19. My “red flags” – watch out for …
6 key issues
• Well meaning, but…
• Dominant personalities (founder/CEO/Chair?)
• Great idea ………!
• We’ve always done it this way!
• Self interest
• Risky characteristics
– Paid trustees
– CEO on board
– Regulatory non-compliance

21. Conflicts of Interest
• More than just something to be “declared”
• Need appropriate management
• Conflicts of personal interest
• Conflicts of loyalty to another body or person
• Who makes decision?
• Remain in meeting?
• Participate in discussions?
• Vote?

22. Is your Governance Good Enough?
Fundamental question:
Do you/are you able to put the charity’s interest first?

24. When it all goes wrong – Looking at
AWEMA – a Reporter’s view point
Martin Shipton
Chief Reporter, Western Mail Newspaper

25. Handling the Media - Top Tips
• Be proactive and avoid having to “firefight”
• Be open and honest wherever possible
• The best form of defence is not “attack” unless you
are attacking the poor practices
• Don’t be “holier than thou”
• “We deplore xyz and if we have been unintentionally
guilty of that then we will put it right” is better than
“xyz is entirely normal in the sector and we have not
done anything wrong”
• Prevention is better than cure!!

27. When things go wrong - Serious Incidents
Trustees may need to:
• Report a Serious Incident to Charity Commission
• Report a matter to Police
• Deal with a less serious incident without initial
reporting
Staff/advisors may need to whistle blow:
• Public Interest Disclosure Act protects
‘whistleblowers’
• Auditors/Examiners – s 156 Charities Act 2011
Not sure serious/significant? – Report anyway!

28. When things go wrong - Serious Incidents
What/When? (See CC Risk Framework)
Serious incident which results (or risks) significant:
• Loss of charity money
• Damage to charity property
• Harm to charity’s work, beneficiaries or reputation
Examples include:
Fraud/Theft; Links to terrorism; lack of safeguarding
policies/vetting procedures; “disqualified” trustee
acting; tax abuse/inappropriate personal benefit; abuse
of beneficiaries; donation from unknown source …….

29. Thank You

30. Contact details
Giselle Davies
DD: 029 2039 1797
M: 07918 651 663
E: giselle.davies@geldards.com
Martin Shipton
DD: 02920 243607
E: martin.shipton@mediawales.co.uk