Commons Sense

House of Commons · Westminster Hall

Charity Sector Funding: Transparency

01 March 2023 · 1 other contributor · 3,969 words

Opened by Craig Mackinlay Con South Thanet

Responding minister: Stuart Andrew

Standards & Ethics

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Craig Mackinlay raised concerns about charity sector funding: transparency in Westminster Hall. A government minister responded.

Key requests to Government

Mackinlay asks for new transparency rules throughout national and local government regarding charity funding, clear publication of grant amounts to charities, proper disclosure of funding from charities to other entities, and a more stringent review by the Electoral Commission on political campaigning under charitable umbrellas. He also requests that the Charity Commission take a firmer stance on core charitable activities.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Craig Mackinlay Con South Thanet

MP Craig Mackinlay is concerned about the transparency of charity funding, especially regarding political activities and anti-Government campaigns by charities receiving significant Government grants. He notes that some charities receive millions in taxpayer funds but engage in political activism against the Government, such as Care4Calais with £1.6 million in funding and Refugee Action with £2.2 million. Mackinlay also highlights instances of local institutions funded through culture recovery grants engaging in anti-Government social media campaigns. He expresses worry about charities like Faith In Strangers causing community disturbances while receiving culture recovery fund support.

Other contributors (1)
  • Jim Shannon DUP Strangford

    Commends the hon. Gentleman for securing the debate, highlighting Northern Ireland's position as the most generous nation per capita and stressing the importance of transparency in charity accountability.

Government Response

Stuart Andrew

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my hon. Friend the Member for South Thanet (Craig Mackinlay) for tabling this important debate on the transparency of charity sector funding. The transparency of charity funding forms a central tenet in enhancing public trust in charities. There are over 169,000 charities on the Charity Commission register and their income exceeds £80 billion annually. Public trust in charities remains higher than in most other parts of society. However, there is a small number of cases of deliberate abuse or mismanagement which puts charitable assets at risk; in these cases, the Charity Commission intervenes, investigates and takes appropriate regulatory action. The charity sector's income comes from diverse sources such as public donations, trading activities, and Government grants. Nearly two-thirds of charities do not receive funding from the Government. To ensure taxpayer money is well spent, Government grants must comply with the Grants Functional Standard. Fundraising is a key source of income for charities, which necessitates strong regulation to promote best practice and assess concerns. The Fundraising Regulator was established in 2016 as an independent regulator of charitable fundraising following a cross-party review. Charities can engage in non-party political campaigning if it helps deliver their purpose, but they are prohibited from supporting political parties or politicians. If concerns arise about charities' activities, the Charity Commission assesses and determines whether regulatory action is required. The Government are committed to transparency and publish annual statistics for all grants distributed on gov.uk. I commit to raising my hon. Friend's concerns with the chair of the Charity Commission at our next meeting.

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