Ethics Newsline®

LONDON
A new report released last week warns that U.K. nonprofits are failing to do an adequate job of explaining their activities, finances, and priorities, warning that they could lose donors’ trust if they fail to improve.

The report was issued by the Charity Commission, an industry watchdog, which reviewed the annual reports and accounts of 200 of the largest nonprofits in England and Wales, reported the Guardian.

The survey found that 73 organizations relying primarily on government funding were among the least transparent, and that nearly half — 92 — failed to meet government requirements on accounting for the work of volunteers.

Discussing the report’s findings, chief charity commissioner John Stoker noted that “while there are some very good examples, too many charities in our study did not meet even the basic requirements.”

Warning that a loss of transparency could cloud donors’ trust and cripple nonprofits, Stephen Ainger, chief executive of Charities Aid Foundation, told the BBC that the industry needs to take action quickly.

“If we are to retain the trust and confidence of donors, the charity sector must be raising its game and providing the range of information that donors are likely to demand,” Ainger noted.