Public sector – Charity FDs Group denies ‘poor financial management’

A steep rise in the number of charities being placed in the hands of receivers is not a sign that standards of financial management in the voluntary sector have slipped, the Charity Finance Directors Group said this week.

Responding to claims by the Commons Public Accounts Committee that it had lost ‘its management grip’ on the #18.3bn voluntary sector, the Charity Commission – which keeps tabs on 187,000 charities – said last week it had appointed 16 receivers and managers to charities in the last three years. This compared to just seven appointed in the previous three.

But Nigel Scott, CFDG trustee and Children’s Aid Foundation FD, denied increased commission intervention came about because of poor financial management within the sector. Instead, he blamed a combination of increased supervision and funding problems.

‘I don’t believe the financial and general management of charities have declined in recent years,’ he said. ‘Supervision by the commission has increased and they have increased the number of financial staff working for it.’

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