How transparent are charitable foundations? A large-scale comparison of transparency levels in grant-making trusts and foundations in England and Wales

Abstract

Debate on the role of charitable grant-making foundations often references concerns about their lack of transparency. There has, however, been limited empirical investigation of foundation transparency levels. In this study, we report the largest-ever investigation of transparency among grant-making foundations in England and Wales. Based on a novel dataset, which captures the level of grant-specific data published by more than 2,200 foundations over five years from 2014 to 2018 (inclusive), we find that: (a) overall, these foundations are transparent in their disclosure of grant-specific data; (b) the results also paint a picture of stability – of those foundations with published trustees’ annual reports and accounts in all five years of this study, 78 per cent had the same disclosure practice throughout; and (c) a specific regulatory change mandating grant-specific disclosure has not substantially increased levels of disclosure. This study therefore provides detailed evidence that contributes to and expands the conversation on English and Welsh foundation transparency.

Navigating financial management challenges in the Scottish charity sector: insights and strategic approaches

“…The focus is particularly critical, as funders and stakeholders rely heavily on the accuracy and transparency of these financial reports for assurance that their resources are being utilised effectively and appropriately (Alsop and Morgan, 2019;Abnett and de Vries, 2022). Any discrepancies or shortcomings in these accounts can severely undermine trust and potentially jeopardise future funding opportunities (Ortega-Rodríguez et al, 2020).…”

Accountability of Alfamart Donation Funds Based on Consumer Perspectives

“…If donation organizers engage in irresponsible actions in managing the donations, it will hurt public trust and may jeopardize the sustainability of the donation program [2,3]. The debate surrounding the role of donation organizers often revolves around concerns about the lack of accountability of these institutions [4] This is evident in several cases related to the accountability of donation funds, such as the one involving a consumer who filed a lawsuit against the Alfamart minimarket chain for not providing transparent information about the donations received from the public. The consumer argues that Alfamart did not provide clear answers regarding the financial reports of the donation funds (https://www.cnnindonesia.com/).…”