The latest research from the Charity Commission reveals that public trust in charities is at its highest since 2014, with the sector achieving a trust rating of 6.5 out of 10.
This rise in trust, from a low of 5.5 in 2018, reflects the positive impact of good governance and transparency on public perception.
What drives trust?
According to the research, how a charity spends its funds is the top priority for the public when deciding whether to trust a charity, followed closely by knowing that the charity meets its purpose, makes a tangible difference, and upholds high ethical standards.
With 58 per cent of the public now expressing “high” trust in charities (rating 7 out of 10 or higher), the sector ranks as one of the most trusted in society, just behind doctors.
David Holdsworth, Chief Executive of the Charity Commission, emphasised the positive outlook: “These findings are encouraging, demonstrating that charities collectively are once again firmly trusted by the public, making a visible, essential difference locally, nationally, and globally.
“However, there is no room for complacency, especially as charities face a challenging financial environment with more people needing their services and fewer able to donate.”
The importance of financial transparency
In today’s financial climate, charities face the dual challenges of increased demand for services and a decrease in donations.
Fewer people are giving to charity, with 47 per cent saying they donated or raised funds in 2024 compared to 62 per cent in 2020.
Meanwhile, the number of individuals seeking charity services, including financial, food, and medical support, has tripled from three per cent in 2020 to nine per cent.
Given these conditions, transparency in how charities manage their finances has never been more important.
The Charity Commission’s public register, which provides details on a charity’s purpose and spending, is an essential tool for maintaining public confidence.
Charities that demonstrate clear and responsible use of funds are better positioned to retain public trust, even as financial pressures mount.
However, despite this, the research highlighted charities’ ongoing struggles with banking services.
Two in five trustees reported issues with banking services over the past year, with the Commission calling out poor service as a serious concern affecting the sector.
Inadequate banking support can disrupt a charity’s operations and damage its financial stability, underlining the need for banks to improve their service to the sector.
Governance and the role of trustees
The Charity Commission’s research also sheds light on trustee attitudes, revealing that the majority of trustees hold their charities to high standards, with 61 per cent agreeing that a registered charity should have higher standards of conduct than other organisations.
Trustees expressed high confidence levels in fulfilling their responsibilities and understanding the scope of their decision-making powers, especially among those aware of the Charity Commission.
However, the survey highlighted areas for improvement. Trustees were less confident when it came to avoiding personal biases in decision-making, addressing conflicts of interest, and overseeing finances.
Only a small percentage (three per cent) reported that their charity uses Artificial Intelligence, though this rose to eight per cent among larger charities, indicating that technological adoption in the sector remains limited but is growing.
Final thoughts
With the public’s expectations of transparency, accountability, and ethical conduct higher than ever, it is essential that charities continue to strengthen governance and financial controls.
Robust financial oversight and a clear, open approach to spending are crucial for sustaining the trust that has been rebuilt over recent years.
Therefore, in the face of economic pressures, maintaining strong governance is the key to both safeguarding public confidence and ensuring the longevity and impact of charitable organisations.
To find out how our charity experts can support you with maintaining strong governance and financial stability, please get in touch.
