International charity regulators collaborate for stronger governance and public confidence

  • Person icon Aamar Hussain
  • Calendar icon 6 November 2024 15:20

In an important step for global charity oversight, leaders from charity regulators across eight countries recently joined forces to address critical challenges impacting the charitable sector worldwide. This collaboration, reflected in a recent communique, outlined four main themes: simplifying charity registration, embracing digital innovation, fostering public trust and enhancing cross-border cooperation.

 

Charity registration and charitable status

The charity regulators from the eight nations agreed on the importance of refining registration processes to enhance transparency and accessibility. They recognised the need for streamlined, accessible systems that make registration more efficient, reducing barriers for new charities. By simplifying the process and tightening the oversight of charitable status, they aim to maintain integrity and accountability in the sector.

Subject to national laws, regulators also agreed to enhance data-sharing to prevent cross-border misuse of charity status and to explore streamlined registration for charities operating internationally.

 

Digital, technology, and data

Technology’s dual role was a key point: it offers charities efficiency and expanded outreach but also brings potential risks. Regulators agreed to encourage the responsible use of digital tools, including secure platforms for donations and improved data management. They also discussed supporting charities to embrace innovation while protecting against misuse, such as fraud or data breaches, which could harm donor trust.

 

Communication, education and public trust

Public trust underpins the success of charities, so the regulators focused on fostering transparency and accountability through clearer communication and educational initiatives. They stressed the need for charities to regularly update donors on their missions and impact, ensuring funds are visibly used for intended purposes. This approach seeks to deepen trust, making donors feel more connected and informed.

 

Compliance

To ensure the sector’s integrity, the regulators discussed enforcing compliance through consistent standards and improved monitoring. The aim is to support charities in adhering to ethical guidelines while reducing administrative burdens that could hinder operations. Subject to national laws and regulations, by sharing appropriate insights, particularly across borders, they hope to support charities working internationally while reducing opportunities for misconduct.

 

How can Mercia help?

Mercia offers a range of training courses, support products including manuals to aid compliance with the regulations and offers a comprehensive technical query service for advice on your specific circumstances. Don't forget we also offer a specialist Charity Newsletter so you can keep your clients update with the latest accounting tax and governance news.

 

 

 

 

You might also be interested in these articles…