Why every charity needs a dedicated whistleblowing policy

The charity sector, lauded for its altruistic aims and positive contributions to society, is not immune to governance failures, financial mismanagement, or improper conduct. There have been some headlines in the press where charities have got things wrong. These stories can have especially damaging consequences in charities, where public trust and confidence is paramount. Whistleblowing plays a critical role in safeguarding integrity within these organisations, but its potential is often underestimated in the charity sector.

It is therefore important to have a dedicated whistleblowing policy, covering protected disclosures in the public interest, rather than relying on other general policies that cover wrongdoing, and why this matters for charities in particular.

The unique challenges facing charities

Charities occupy a unique position in society. They are driven by a mission to do good and are funded primarily through donations, grants, and public support. This creates a different kind of stakeholder relationship than for-profit entities. The reputational risks for charities can be severe; scandals or allegations of misconduct can result in a catastrophic loss of public trust, leading to a reduction in donations, funding, and volunteer engagement.

Misuse of funds, conflicts of interest, abuse of beneficiaries, or unethical practices can and do occur. Charities, often staffed by volunteers or part-time employees, can lack the robust oversight mechanisms found in larger corporate organisations. When something goes wrong, whistleblowing can be the first line of defence in identifying and addressing issues before they spiral into scandals that hit the headlines. However, relying on other existing policies, such as grievance or anti-fraud procedures, is not enough to provide whistleblowers with the protection and clarity they need.

What is whistleblowing?

Whistleblowing refers to the act of raising concerns about misconduct, illegal activities, or any serious wrongdoing within an organisation. Under the Public Interest Disclosure Act 1998 (PIDA), whistleblowers in England and Wales are afforded protection from detrimental treatment and dismissal if they are employees or victimisation if they raise concerns that are in the public interest.

In the charity context, whistleblowing can cover a wide range of issues, including:

– Misuse of charitable funds

– Breach of legal obligations, which are wide ranging and will cover statutory obligations towards beneficiaries

– Abuse or neglect of beneficiaries

– Health and safety violations

– Criminal activities, such as fraud or theft

– Conflicts of interest

Or any attempt to cover up these issues.

Whistleblowing is a vital tool to address these issues, but it only works effectively if there is a clear, supportive framework in place. This is where a dedicated whistleblowing policy comes into play.

Why a dedicated whistleblowing policy is essential

1. Clarity of purpose

A whistleblowing policy is distinct from other policies such as grievance, complaints, or anti-fraud policies, because it specifically creates a credible and integral process for raising concerns about serious wrongdoing. Other policies are typically designed to resolve personal grievances or complaints, but whistleblowing focuses on matters of public interest and organisational integrity. A dedicated whistleblowing policy clearly outlines the procedure for reporting concerns, the types of wrongdoing that are covered, and the protections in place for the whistleblower. This clarity ensures that individuals feel confident in coming forward, knowing exactly how to report concerns, that will be confidential, and how they are protected when they do, to  foster a culture of speaking up.

2. Protection for whistleblowers

One of the key features of a whistleblowing policy is the assurance of protection for those who speak up. Many employees or volunteers may fear retaliation, ostracism, or job loss if they blow the whistle. A strong whistleblowing policy provides a clear statement that whistleblowers will be protected under the law and from any form of detrimental treatment. This assurance is crucial in encouraging people to raise concerns without fear, particularly in an environment where personal relationships and reputational concerns can deter individuals from coming forward.

3. Focus on organisational integrity

Other policies within a charity are often designed to address specific issues (e.g., fraud or safeguarding), but these tend not to adequately cover the broad spectrum of potential wrongdoings or provide the right context for serious concerns. A whistleblowing policy, on the other hand, focuses on the organisation’s overall integrity. It empowers individuals to speak up about any issue that threatens the charity’s mission or operations, even if it doesn’t fit neatly within the scope of other policies.

4. Encourages a speak-up culture

By having a distinct whistleblowing policy, a charity sends a clear message that it is committed to transparency and accountability. This encourages a culture where individuals feel safe to speak up, knowing that their concerns will be taken seriously. When employees, volunteers, or stakeholders know that their charity has a specific whistleblowing mechanism, they are more likely to report issues promptly, preventing potential harm from escalating.

5. Legal and regulatory compliance

Charities must also consider their legal obligations under UK law. Trustees are under a duty to act in the best interests of the charity and to ensure that its activities are lawful. The Charity Commission strongly encourages charities to have a whistleblowing policy, and in some cases, failure to address serious issues raised by whistleblowers could lead to regulatory action or loss of funding. Having a clear, robust whistleblowing policy ensures that a charity complies with its regulatory duties and can respond quickly and appropriately to any allegations of misconduct.

In conclusion

For charities, the expectations are high when it comes to maintaining public trust and fulfilling their mission. A dedicated whistleblowing policy is not merely an optional extra; it is an essential tool in safeguarding the charity’s integrity and ensuring accountability. While other policies may address specific types of wrongdoing, only a whistleblowing policy provides the clear framework needed to handle serious concerns in the public interest. By promoting a culture of openness and transparency, charities can protect themselves from reputational damage, regulatory intervention, and, most importantly, uphold their core purpose of serving the public good.

If your charity does not have a whistleblowing policy or it has not been reviewed in the last 3 years and you would like help to review and improve it; or you have whistleblowing disclosure that you need help to investigate or legal advice on please contact nick.hobden@ts-p.co.uk or jayne.adams@ts-p.co.uk