Charities monthly round-up – March 2025

Coming soon – New protective security scheme for places of worship

Are you a faith-based registered (or exempt) charity that has experienced or felt threatened by hate crime? Sadly, you’re not alone, religious hate crimes in England and Wales rose by 25% in 2024.

If you have experienced a hate crime or feel vulnerable, then take note – the Home Office is releasing a new scheme which could entitle you to free security measures like CCTV, alarms, gates and secure fencing at your place of worship or associated community centres. The scheme is not currently open for applications, but take a look to see if you are eligible, as this could help deter and prevent hate crime.

In the meantime, it’s important to think about how to reduce the risk of hate crime and protect those volunteering and attending places of worship. Remember, it is important to report all incidents, no matter how minor, to the police and other organisations that track hate crimes (Stop Hate UK). Keeping detailed records helps identify patterns and strengthens arguments for better protection (and might also support any application under the Home Office Scheme).

An update on failure to prevent fraud

You will be aware from last month’s newsletter that there is a new failure to prevent fraud offence coming into force on 1 September 2025. Under this offence, an organisation may be criminally liable when someone associated with them commits fraud intending to benefit the organisation and the organisation did not have reasonable fraud prevention procedures in place. There is no requirement that directors or senior managers ordered or knew about the fraud. So, whilst it is anticipated that this will mainly impact larger charities, it highlights the necessity for good policies and procedures to be in place and followed. If you haven’t already, you can read the Home Office guidance here.

If you have any concerns about potential fraud or for any assistance in drafting fraud prevention policies or procedures, please get in touch.

A cautionary tale – No one person should dominate and assume control of a charity

Whilst we’re on the topic of diligence and procedures, the Charity Commission (the Commission) recently identified shortcomings at the Sikh Channel Community Broadcasting Company Limited which resulted in:

1. the Commission concluding there was misconduct and/or mismanagement in the administration of the charity by the previous trustees and ex-CEO;
2. a new board of trustees being appointed who subsequently closed the charity down; and
3. the former CEO giving a formal undertaking to the Commission not to serve as trustee or hold a senior role in any charity without their consent, for the next ten years.

The Commission found the previous trustees to either be unable or unwilling to discharge their legal duties and responsibilities and act in the best interests of the charity. The previous trustees failed to conduct due diligence with a linked company, monitor the use of funds and maintain appropriate accounting records. The CEO also failed to have sufficient accountability or oversight – there were myriad failings found.

Joshua Farbridge, head of compliance visits and inspections at the Commission, described the case as ‘a cautionary tale against allowing any one person to dominate and assume control of a charity’. Some of the key issues identified for the wider sector to note were:

• Trustees must ensure that their charity has adequate financial controls in place: there were financial issues arising within the charity which prompted the Commission to remind charity trustees of their role to manage and document their financial governance, not only to seek to protect the assets of the charity but also protect public trust and confidence in charities generally that their money is going to legitimate intended causes. 
• Trustees must carry out due diligence, monitoring and verification: charity trustees are legally responsible for ensuring they know the source of charitable funds, ensuring they are used properly for legitimate charitable purposes, being confident that they know the people and organisations the charity works with and that they can identify and manage associated risks ensuring charitable funds are not misused for financial crime, terrorist, or other criminal purposes. So, how well do you know your finances and how robust are your monitoring processes – is it time for a review?
• Trustees must be aware of and act following their legal duties: all trustees should be made aware of their legal duties and responsibilities and then act in accordance with them. Trustee duties cannot be delegated and apply to all trustees regardless of the size of the charity. When the conduct of trustees falls below the standards expected there can be damage to the reputation of individual trustees, the charity and possibly the wider charity sector. Training, policies, appraisals and monitoring are therefore key to ensuring these legal duties are met.

Trustees duties apply to personal social media accounts

Trustees must act in the best interests of their charity, but many may not realise that this also includes personal social media channels.

Gary Mond, a trustee of Jewish National Fund UK, was disqualified for two and a half years in 2023 over historic social media posts deemed Islamophobic. Whilst he successfully appealed and was the first to overturn such a ruling, the Commission stated that the outcome of the case brings more clarity to trustees’ appropriate use of social media. This underlines the need for all trustees to act in the best interests of their charity, including while posting in a personal capacity.

Libby Hubbard also recently wrote a blog on a high-profile employment case involving the use of social media, recognising that competing rights, social media activity and preserving a reputation are key issues for employers, including charities.

Struggling to attract younger staff?

Charities have been encouraged to invest in their younger staff as government figures show that fewer people under 25 are employed in the sector than in the wider economy. According to an analysis by the Civil Society of estimated figures from the Department for Culture, Media and Sport, 6% of charity sector employees were under 25 in the year to June 2024. This is a decline on the year before and half the proportion in the wider UK economy (11%).
Responding to the figures, Erica Holt-White, research and policy manager at the Sutton Trust, said it is ‘disappointing’ to see fewer young people working in the charity sector than elsewhere and that the trend is not improving. Erica suggests that charities can attract young people by offering clear career pathways, paid internships and entry-level roles. Engaging with schools and universities, promoting flexible work and highlighting career growth opportunities will make the sector more appealing to young talent too. Something to consider when recruiting and enticing our charity leaders of the future.

Annual social care update

Our employment team are hosting their annual social care webinar on 2 April from 10am to 2pm. Bearing in mind the pressures and challenges social care providers are currently facing, this session will address issues such as managing workforce change, preparing for the changes the Employment Rights Bill will bring and unpacking the new requirement to take reasonable steps to prevent sexual harassment. As ever, the session is practical and crucially sector-specific. Places are limited, book now.

Updates on the Employment Rights Bill

If you haven’t done so already, you can visit our Employment Rights Bill (ERB) Hub and sign up to our subscription service, which will be of great assistance to employers as we navigate the generational changes that are promised!

For more information or advice on the topics raised in this month’s newsletter, please contact your usual AC contact or Sarah Patrice your editor for this month. Sarah is a partner at Anthony Collins, advising a wide range of charities and not-for-profit organisations on all aspects of charity, company and co-operative and community benefit society law. She provides guidance on complex governance matters, restructuring, mergers, regulatory matters, board conduct, investigations and governance disputes.

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