Charities Bill [HL]

Baroness Rawlings Excerpts

Wednesday 7th July 2021 Grand Committee

[Baroness Rawlings (Con)]

My Lords, the London County Council’s children’s care committee was not a charity, but all of us were unpaid. Admittedly, that was a long time ago, and it was my first job. I trained subsequently as a VAD nurse and worked with the Red Cross for many years. Of the money raised, 7% was spent on administration—only 7% was allowed in those days. Today’s figures used to be available on the Charity Commission’s website, but they have been dropped. There are substantial amounts being mentioned. The NCVO is the most helpful source of information, if one need to find out more.

I fully support the fact that anyone who does a proper job and works hard should be paid a proper wage. There are more financial responsibilities nowadays; life’s demands are far tougher in today’s market than they were 50 or 60 years ago, and the competition in the market for all levels of work is greater. A few years ago, I asked the CEO of a major charity why he moved from being CEO of charity X to being CEO of charity Y. The answer was simple: “Because they paid more.” I was shocked and saddened. I am not—I repeat, not—including trusts and educational institutions such as the Wellcome Trust or research bodies with investments. That is a totally different story.

Today’s list of charities is so huge and varied and the legal position so diverse and complex, especially in the area of percentage deductions, that perhaps charity law should be revisited further than this Bill. I know that, 50 or 60 years ago, we were a very different country. With the example we have had already from my noble friend Lord Hodgson regarding the Albert Hall trustees, I wonder where it all went wrong.

However, many—indeed most—of the charities in the voluntary sector are staffed by volunteers, who do a job of some sort for no financial gain. I am not seeking to make some kind of moral judgment but simply to draw the distinction. Volunteers are not better than paid workers; indeed, they may be one and the same, in that they have paid jobs but also do voluntary work in their spare time. This is quite normal in Britain and other western democracies.

Nearly half of the British adult population are volunteers—roughly 48%, or 22 million people. Let me give your Lordships a few examples: helpers in health centres; recently retired doctors, some spending up to eight hours a day giving Covid jabs; fundraisers; lifeboat crews; local government councillors; judges; members of non-stipendiary magistrates’ courts; church wardens; choirs; bell-ringers in parish churches; Samaritans; prison and hospital visitors; and chancellors of universities. The list is endless. They are people who wish to help others less fortunate than themselves. They wish to do their civic duty. They care.

Alongside those 22 million volunteers, many of your Lordships have worked for various charities all your lives. I admit that I was lucky enough to be in a position to do so too. Like my noble friend Lord Hodgson, whose review I very much recommend, I was president of the National Council for Voluntary Organisations—a fine organisation. But what do the NCVO, the Charity Commission and all those generous people who donate their money have to say regarding the alleged percentage that some charities pilfer yearly from the kitty?

I repeat my question: why do so many so-called charities need to spend this X per cent? It is no doubt more than the 7% that I mentioned earlier. This hard-raised money is possibly being spent on overheads and administration, rent, organising events and salaries. The figures should be transparent and easy to access and check. We all know why they are not, as it is much easier to spend somebody else’s money. I fully support the cy-près powers suggested in the Bill and the Bill itself.

I urge the Minister to find a way, in the Special Public Bill Committee, that my argument and its spirit be included in this Charities Bill.