Charity Commission to ‘sharpen up’ its reserves guidance in light of Kids Company collapse
The Charity Commission is currently reviewing its guidance on reserves and expects to provide trustees with more targeted guidance, as a result of the high-profile collapse of Kids Company earlier this year.
Michelle Russell, director of investigations, told the Public Adminsitration and Consititutional Affairs Select Committee yesterday that the Commission “will clarify and sharpen up our guidance in light of what has happened over the summer”.
“We think its common sense but clearly there’s a need that we give a bit more guidance than we’re giving,” she said. And explained that charities which provided services, had staff, or who worked with vulnerable beneficiaries “had a higher duty of care” than grantmakers, for example.
She said that eh Commission would “err away from setting a limit or a threshold” because “it depends on each individual charity” but that it did want to provide guidance that was more tailored to different types of charity.
William Shawcross, chair, added that: “It would be a terrible mistake if we laid down hard and fast rules for every little kitchen table charity.”