How can recent charity scandals be resolved?

Earlier this year in February, Oxfam was in the middle in one of the biggest charity scandals that affected the public’s view and caused thousands of donors to cancel their direct debits with them. Founded in 1942 by Cecil Jackson-Cole the charity’s mission statement is “a world without poverty”, which they will achieve by “creating lasting solutions to the injustice of poverty." 

"We are part of a global movement for change, empowering people to create a future that is secure, just, and free from poverty.” Established for 76 years the charity worked hard to build a good reputation across the globe, but it shows how easily a scandal could dismantle years of hard work.

Since Oxfam’s scandal, the public is calling for charities to be more upfront about how they use donations. Although it was only one charity with one scandal it has affected how some people in the UK view charities, with less enthusiasm to donate if they’re unaware about how their money is being used. An example of how this has already worked for charities is Crisis’s Christmas campaign. In 2017, Crisis who are the UK’s national charity for single homeless people asked for just £26.08 as that is the exact price to feed one person three hot meals a day for nine days in one of their centres in London, Newcastle, Oxford, Edinburgh and Merseyside. During the festive season animal charity RSPCA also asked for specific money donations such as £8, £10.40 and £12 to feed a cat, rabbit or dog for three days over Christmas.

“But charities are increasingly identifying the need to give feedback to donors, to tell them exactly how they have made a difference,” states Ken Burnett, one of the UK’s most experienced fundraising consultants. “This can be indicative, explaining the kind of thing we do with your money, or it can be absolutely specific, as in the case of the Crisis campaign. From the donor’s point of view, a round figure could look like something plucked out of the air. The odd 8p lends a credibility to it.”

Releasing more information about how your charity uses donations could see a positive surge of interest in your establishment. To protect your charity’s reputation find out more about Alan & Thomas’s Professional Indemnity, Public Liability and Trustees & Directors Indemnity insurance policies. Contact us today.