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Charity Commission chairman issues charity pay warning

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Charity Commission chairman issues charity pay warning

Post by Guest on 06.08.13 10:40

Hmmm, interesting as we have been discussing charities lately, 315 comments so far...............

6 August 2013 Last updated at 09:35


Charity Commission chairman issues charity pay warning


William Shawcross questioned whether high salaries were "fair" to donors and taxpayers




Large salaries paid to charity staff could "bring the charitable world into disrepute", a regulator has warned.

Charity Commission chairman William Shawcross said organisations must ask if pay levels are "really appropriate".

The Daily Telegraph reported 30 staff at 14 leading UK foreign aid charities were paid £100,000 or more last year.

Charity leaders' organisation Acevo said the salaries for these "very demanding jobs" were not excessive compared to other sectors.

Mr Shawcross, who was appointed last year on a £50,000 annual salary to work two days a week, said the commission could not tell charities how much they should pay their executives, but urged them to be cautious.

"In these difficult times, when many charities are experiencing shortfalls, trustees should consider whether very high salaries are really appropriate, and fair to both the donors and the taxpayers who fund charities," he said.

"Disproportionate salaries risk bringing organisations and the wider charitable world into disrepute."
'Deeply unhelpful'
According to the Telegraph, British Red Cross chief executive Sir Nick Young was paid £184,000 last year, two Save the Children executives received more than £160,000 each and Christian Aid chief executive Loretta Minghella was paid £126,072.

The number of staff being paid more than £100,000 at the 14 charities it focused on had risen from 19 since 2010, the newspaper added.

DEC works to help people affected by disasters around the world, such as the 2010 Haiti earthquake

The charities detailed by the newspaper make up the Disasters Emergency Committee (DEC), which co-ordinates work after disasters overseas.

A spokesman told the Telegraph executive pay at its member organisations was "broadly in line" with other charities.

"To ensure the most effective use of appeal funds, a balance must be struck between minimising overheads and ensuring a robust management system is in place," he said.

"Good management of emergency responses in the UK allows our member agencies to deliver the planning, monitoring, accountability and transparency that this work requires and that the public rightly demands.

"The proportion of DEC appeal funds that can be spent by member agencies on the UK management of their disaster responses is capped at seven per cent."

Sir Stephen Bubb, chief executive of the Association of Chief Executives of Voluntary Organisations (Acevo), told BBC Radio 4's Today programme that Mr Shawcross's remarks were "deeply unhelpful" and "wrong".

He said the average salary for a charity chief executive was £58,000 and the higher salaries were "entirely justified".

"The big national and international charities are very demanding jobs and we need to attract the best talent to those jobs," he said.

"I know some of the people who are on these so-called excessive salaries who have taken pay cuts to run a charity."

Sir Stephen denied the high salaries could put off donors.

"This simply isn't an issue for donors. Donors are more concerned about the outcomes, the performance and the efficiency of these organisations," he added.

http://www.bbc.co.uk/news/uk-23584191#

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Re: Charity Commission chairman issues charity pay warning

Post by aquila on 06.08.13 10:54

Snipped from Candyfloss' post

 "This simply isn't an issue for donors. Donors are more concerned about the outcomes, the performance and the efficiency of these organisations," he added.

http://www.bbc.co.uk/news/uk-23584191#

I agree with this statement. So how about charities report transparently the following EVERYTIME there is an appeal for a donation or a donation is made or someone is just about to hit the 'donate' button they are told the following:

How much is paid in salaries

What percentage and the precise amount that goes directly to the cause

What the donors' money has actually done/achieved for the cause

That way people will have an informed choice of where to place their generosity and charities will have nothing to worry about in terms of creating meaningless wastage and jobs for the boys.

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Re: Charity Commission chairman issues charity pay warning

Post by listener on 06.08.13 11:18

Off Topic (or maybe not) -
A long time ago (very early eighties), I spent a summer as a cocktail barman in a very posh hotel/restaurant in Jersey. One fortnight we had a guest in her thirties, very well-dressed and spoken, who mingled with the high-flyers after dinner. Late one night another guest started discussing her (my job was to attend and listen!). According to guest, she was a VERY well paid fundraiser for a top 'charity' and her job, all expenses paid, was to infiltrate the elite circles for the benefit of the charity.
At the time I was quite disgusted because I had just completed a sponsored swim earlier that year (after months of training) for the same charity and here she was, splashing out much more on food and drink (champagne and cocktails) every evening, than I had raised.
I have still not quite balanced my thoughts about how 'charities' spend very large percentages of honest donations thinking

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Re: Charity Commission chairman issues charity pay warning

Post by lj on 06.08.13 13:52

I spend almost 5 years in the Washington DC non-profit circles. Since then I haven't given a penny to any of those organizations. It is disgusting what you see there. It's one big where circuit -as they say in the Netherlands- one hand washes the other. There was even a case of one man washing his money for retirement and inheritance through a whole string of non-profits. The only activity in those was moving the money from one to another. Nope: I'll buy clothing and school material, food, medicine (for animals and humans) and deliver it myself. The only organization I will give something to is the Salvation army, they do great work where I live.


So Sir Stephen is wrong at least as far as I and quite a few of my friends are concerned. The best charity is close to home. And don't get me started on the pink pollution: bully tactics.

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Re: Charity Commission chairman issues charity pay warning

Post by tigger on 06.08.13 14:08

Apart from pay -  Many charitable events are set up to revive the flagging careers of actors and pop stars. 

My pet hate after Geldof  is Comic Relief? You must be seen to have donated with that plastic red nose.

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Re: Charity Commission chairman issues charity pay warning

Post by Guest on 08.08.13 11:47

Oh dear.......




Save the Children executives shared £160,000 bonus pot



Executives at Save the Children, one of Britain’s best-known charities, shared bonuses worth more than £160,000 last year, The Telegraph can disclose.

http://www.telegraph.co.uk/news/politics/10229675/Executive-pay-at-charities-not-excessive-claims-industry.html

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Re: Charity Commission chairman issues charity pay warning

Post by sallypelt on 08.08.13 12:37

candyfloss wrote:Revealed: who is getting the most money at Britain's biggest aid charities


 http://www.telegraph.co.uk/news/politics/10223961/Revealed-who-is-getting-the-most-money-at-Britains-biggest-aid-charities.html

I've stopped donating to charities that contact me by telephone. My husband has send sterling through the post, on these cards where you fill them up with pound coins. Who's to say, when they are opened the other side, that it didn't go straight into the pockets of those who opened the envelopes?

I would like to see a central pot, where ALL charity donations go, and then have HONEST, CARING people hand it to the charities. There are many people out there, who have "politics and social policy" degrees, who would be all too willing to work for £30,000 a year, and do a damn good job.

In future, all MY charity donations will be going to LOCAL causes, where I can see how the money is spent.

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Re: Charity Commission chairman issues charity pay warning

Post by aquila on 08.08.13 12:47

@sallypelt wrote:
candyfloss wrote:Revealed: who is getting the most money at Britain's biggest aid charities


 http://www.telegraph.co.uk/news/politics/10223961/Revealed-who-is-getting-the-most-money-at-Britains-biggest-aid-charities.html

I've stopped donating to charities that contact me by telephone. My husband has send sterling through the post, on these cards where you fill them up with pound coins. Who's to say, when they are opened the other side, that it didn't go straight into the pockets of those who opened the envelopes?

I would like to see a central pot, where ALL charity donations go, and then have HONEST, CARING people hand it to the charities. There are many people out there, who have "politics and social policy" degrees, who would be all too willing to work for £30,000 a year, and do a damn good job.

In future, all MY charity donations will be going to LOCAL causes, where I can see how the money is spent.

 Add this to the mix....

The National Lottery and the Postcode Lottery both give money to charity in some shape or form (I'm not clever or dedicated enough to find out what happens in the decision making process and whether it has direct benefit to victims). Both are clearly marked as supporters of the charity Missing People.

People think that by buying a lottery ticket they are contributing to charity and so stop directly contributing to charity (I'm getting dizzy now)....it's very easy to see what a farce has been created.

I'm not a mean spirited person by nature but I do hope that every sip of champagne supped in the name of charity funding causes at least the condition of heartburn.

There was a wonderful comment in response to an article today in the DM which went along the lines of...

why do employees of a charity need performance related pay to do a job for a charity when volunteers do it for nothing.

I'm editing to add....there are very, very many talented people of all ages who could run a charity properly without the myth of it taking a posh person with connections in high places or a celebrity to do the job.

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Re: Charity Commission chairman issues charity pay warning

Post by sallypelt on 08.08.13 12:57




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"why do employees of a charity need performance related pay to do a job for a charity when volunteers do it for nothing"..

Exactly!!

As for the lottery, back in the early 2000s, as part of my job, I was asked to contact the National Lottery Headquarters, and ask for a breakdown of how much money was spent in each region. The aim of this research was to see if people in poorer areas were spending more money on lottery tickets, than those in more affluent areas. Surprise, surprise, this information was NOT forthcoming. But we more or less, knew the answers, as less well-off people spend more as a percentage of their income on tickets than those at the other end of the scale, but these areas get far less back in "good causes". At the same time, the operas, Churchill's Papers, etc were receiving hundreds of thousands of pounds in lottery donations.

Stinks to high heaven, doesn't it?

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Re: Charity Commission chairman issues charity pay warning

Post by aquila on 08.08.13 13:15

@sallypelt wrote:


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"why do employees of a charity need performance related pay to do a job for a charity when volunteers do it for nothing"..

Exactly!!

As for the lottery, back in the early 2000s, as part of my job, I was asked to contact the National Lottery Headquarters, and ask for a breakdown of how much money was spent in each region. The aim of this research was to see if people in poorer areas were spending more money on lottery tickets, than those in more affluent areas. Surprise, surprise, this information was NOT forthcoming. But we more or less, knew the answers, as less well-off people spend more as a percentage of their income on tickets than those at the other end of the scale, but these areas get far less back in "good causes". At the same time, the operas, Churchill's Papers, etc were receiving hundreds of thousands of pounds in lottery donations.

Stinks to high heaven, doesn't it?  
What really sticks in my craw is that the most that will come out of any scrutiny of these charities will be a new mission statement to combat any criticism. Of course that mission statement will be paid for by.....well guess.....and will benefit companies....well guess.....and will make no difference to people in need....no need to guess.

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yet another one exposed as a cash cow for its directors.

Post by PeterMac on 03.02.14 8:26

http://www.dailymail.co.uk/news/article-2550648/Fury-234-000-salary-boss-Save-Children-Charity-chiefs-huge-wages-reined-say-MPs.html
Fury over £234,000 salary of the top boss at Save the Children: Charity chiefs' huge wages must be reined in, say MPs
High earner, thought to be Jasmine Whitbread, among 20 earning over £100k
Another nine on six-figure salaries at charity's UK arm
Surpassed by highest paid employee at Marie Stopes - who earns £290k
MPs today condemned the pay rates and secrecy surrounding figures

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Re: Charity Commission chairman issues charity pay warning

Post by plebgate on 03.02.14 8:54

I wonder if Jasmine Whitbread is something to do with  Whitbread family (used to be brewery family)?

It is a ridiculous sum to be paid as CEO of a charity and I watched a news report the other week where it was stated that it is nearly the end of charity collecting from "ordinary" folk, i.e. people knitting, coffe mornings, etc.   -  They are now more interested in keeping in with the big organisations who donate very big sums but as we have recently read, this could lead to conflicting interests.

If charities think that it is nigh on the end of charity collecting from the plebs, why do I keep getting begging letters through my door practically every day?

S*d off you greedy barstewards.

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Re: Charity Commission chairman issues charity pay warning

Post by aquila on 03.02.14 14:48

I've literally just closed the door to yet another person with an official tag and a clipboard.

This very nice lady was asking for donations to the British Legion - for rehab centres for returning armed forces. It's a new lottery with a difference apparently - many more prizes. It costs £1 per week.

The British Legion is a charity close to my heart. The British Legion helped my Dad when he was suffering from terminal cancer and he went to one of their respite centres for a week's break from things. However, this lady thrust a laminated sheet in front of me, pointed at the 'prizes' with a pen and invited me to gamble - the promise of riches. Now it's not her fault that she's knocking on doors with this crap. She's doing a job - probably paid by result.

I'm afraid I wasn't very patient with my 'door knocker' - we have so many of them. I'm ashamed of myself in a way but when someone knocks the door and immediately asks for money it is disgusting in a nation such as Britain whose folk are the most generous souls to have constant door knocking for money.

It's disgusting that charities have jumped onto the bandwagon of lottery/gambling/prizes.

I give to charity. I'm fed up with the charity BUSINESSES.

Sorry folks, I needed to get that off my chest.

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Re: Charity Commission chairman issues charity pay warning

Post by ultimaThule on 03.02.14 16:28

I regularly support Medecins Sans Frontieres and the Smile Train and at the end of every year I make a sizeable donation to a charity which devotes itself to a cause in the UK - this latter charity varying depending on what has caught my attention and what I consider to be its general worthiness.

However, it occurs to me that we should be questioning why, in a first world country, there is any requirement for charities which 'begin at home', so to speak, when monies raised by taxation are more than sufficient to ensure all of the health and welfare needs of the UK's population are met.  

As an example, given that every local and regional authority has a social services department which is intended to meet the needs of the most vulnerable members of society, I find it scandalous that there should be a need for charities such as the NSPCC and Age Concern and I'm bemused by the fact that many such charities are, effectively, state funded. 

Please note that I'm not knocking the valuable, and some would say essential, work of the above two charities but I do question and deplore the shortcomings of the system which has caused them to come into being. 

Charities have become big business with multi-million £ turnovers and I'm particularly concerned at the rise of those such as Missing People, which now appears to be muscling in on areas of child care and welfare in which it has no expertise, and of those other charities whose executives received inflated salaries while its work is being done by unpaid and unqualified volunteers.

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Re: Charity Commission chairman issues charity pay warning

Post by Garrincha on 03.02.14 21:04

Hello Ultima – if you Google “Smile Train criticism” you’ll see some negative stuff, particularly about executive remuneration

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Re: Charity Commission chairman issues charity pay warning

Post by ultimaThule on 03.02.14 22:47

Thank you very much for drawing my attention to this, Garrincha.  I've been supporting Smile Train since shortly after its inception, but the donation I gave just before Christmas is the last one they'll get from me and I will be letting them know why.  

I shall now search for a more worthy charity which makes a material difference to the physical wellbeing of children in the third world and, in the meantime, my donations to MWF will be doubled.

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Re: Charity Commission chairman issues charity pay warning

Post by paradigm67 on 03.02.14 23:12

@ultimaThule wrote: I find it scandalous that there should be a need for charities such as the NSPCC and Age Concern and I'm bemused by the fact that many such charities are, effectively, state funded. 

Please note that I'm not knocking the valuable, and some would say essential, work of the above two charities but I do question and deplore the shortcomings of the system which has caused them to come into being.  
I can see your point UT about the need for such charities but I've always wondered about the NSPCC and what they actually do. Looking at heir financials for the last couple of years they seem to raise around £130 million a year of which £75 million is spent on salaries/pensions. £30 million or so on 'fundraising' (so advertising then). They have multiple investments and portfolios. When they took over childline they got £30 million from the government to run that.

Maybe its just me but apart from the TV adverts I have no knowledge of what they actually do apart from provide multiple consultants and supply spurious research which inevitably works in their interest.

Personally, I think that there are enough struggling childrens hospices around the country that could do with a fraction of what these self perpetuating charities make and do some real good, helping the families and the children themselves that may have life shortening illnesses. From personal experience I know what they do and how much the people that run then and help do. I find the motives/purpose and political influence of the NSPCC to be quite insidious. I'm sure I'll be put right but what do they do apart from scaremongering people into donating more. Good move for them to appoint a former Big Lottery Fund director as CEO.

Charity should begin at home and in the communities we live in, and personally where we can see a difference.

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Charity boss pay in Ireland

Post by Enid O'Dowd on 04.02.14 9:46

The Irish have always been generous in donating to charities but recent revelations here have caused donations to drop and left one charity with thousands of charity teddy bears that always sold well at Xmas.

It emerged that funds raised for this large charity the Central Remedial Clinic (CRC) had been going to  top up the salary of the long serving already very well paid CEO who had recently retired . The state provided significant funding and part of this was to pay the staff but on approved pay scales. The CEO was paid approx €106,000 pa via the state funding (the approved rate)  but this wasn’t enough for him so it was topped up to approx €240,000 pa.

Due to media pressure the whole board had to resign. 

Other matters came to light like the new CEO who was an existing board member helping to chose himself for the job! He stated that he moved his chair back from the board table while the discussion took place and he felt this was proper procedure!!!

More revelations about other charities have emerged including about a charity I have done a lot of work for; again it was salary top ups.

Currently the CEO of a charity REHAB is refusing to disclose her salary on the grounds that the charity has income from commercial activities which pays her salary and that it therefore cannot be compared with charities that only have state funding and money from the public. This CEO has sort of admitted to a basic salary of €234,000 pa a couple of years ago but Phoenix magazine (equivalent to Private Eye) has put her package at around €419,000 pa taking into account salary, bonus, car, expense allowance, company pension. This lady’s qualifications: she is a member of the political party that led Ireland into financial chaos and she is a qualified nurse tho I don’t know how much nursing she did. She worked for REHAB for many years then got the top job.


I have to admit to having worked in a paid capacity for charities in the past. Staff have to be paid, they have mortgages, children etc. You can’t run an organisation of any size just with volunteers. But super salaries make me very very angry and especially when they are hidden from the public.

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