Written evidence submitted by the Charity Commission

Home Affairs Committee inquiry into the Government’s new five year strategy into countering extremism

Introduction – the charity sector and risks of extremism and radicalisation

1. There are over 350,000 charities in England and Wales of which 164,880 are registered charities. There are 943,239 trustees. The total annual income of registered charities is £68.61 billion.

2. It should be recognised that charities and their work can be an important protection against extremism and terrorism and in helping to uphold democracy and the rule of law. Schools, for example, can play a vital role in preparing young people to challenge extremism and the ideology of terrorism. Faith organisations can play an important role in preventive activity, challenging ideology that claims religious justification for terrorism.  

3. Civil society, of which charities are a key part, is an important place for the free exchange of views and debate which can inhibit the activities of propagandists of extremism and terrorism. Some charities provide specific mechanisms for constructive debate and social action to build a strong civil society which can protect against terrorist and extremist abuse. Many charities also help to support vulnerable people in society, including people at risk of radicalisation. 

4. This underlines the importance of meaningful and effective collaboration with charities and civil society on these issues.

5. However, charities are also at risk of being used in radicalisation and abused by extremists and terrorist groups.

How charities might be abused for extremist purposes

6. There will be various drivers of, and risk factors for recruitment to, terrorist movements linked to extremism.  As the humanitarian crisis in Syria has unfolded over the last few years, charities have been involved in delivering critical humanitarian aid and relief to those in need. Some people were motivated to go to conflict zones themselves as volunteers to assist, sometimes travelling on aid convoys. Many have good intentions and are motivated by nothing other than humanitarian relief, but there have been some who used them as a means of moving people, funds and material for other motives. Whilst there, some individuals who did not return with convoys may have been motivated to stay and were recruited to terrorist groups and extremist purposes.  The Commission does not condone or support the use of aid convoys as an effective or safe way to deliver aid[1] and has issued alerts warning of the risks.

7. There have also been occasions when terrorists, and those with extremist views who encourage and support terrorism and terrorist ideology, have used charity events to make those views known, or used charities to promote or distribute extremist views and/or literature, including through online media. This is of serious regulatory concern to the Commission and impacts on public trust and confidence in those charities and the sector more generally.

8. In the Commission’s experience this can arise in various ways, such as during the course of a charity’s activities, through the use of its premises, by speakers at charity events, or use of the charity’s network. Activities may be carried out by someone involved in or connected to a charity, by individuals outside of it or by other organisations. Examples of risk areas include:

•              the charity organises activities promoting or condoning inappropriate extremist views, for example, teaching extremist views in a school or a charity representative promoting extremist views at a debate or event

•              charities may invite speakers or use volunteers likely to promote extremist views to influence or direct the charity’s work, or a visiting or external speaker may use a charity event or meeting to promote messages

•              charity representatives may engage in similar inappropriate behaviour or make inappropriate comments in their personal capacity

•              people with extremist views may use legitimate and acceptable contact with the charity to endorse them, or to give them status or credibility

•              a charity uses or promotes literature which contains extremist views such as articles written in the name of the charity, material posted on the website, or available at the charity's premises, in prayer rooms, bookshops, or through social and other electronic media

•              a charity works with or funds a partner, which may or may not be another charity, that espouses or fails to condemn extremist views and terrorist activity, bringing the charity into disrepute

•              other groups and bodies hire or use charity premises to hold an event at which extremist views are expressed or promoted and/or collect funds in support of extremist or terrorist purposes

•              charities might be used to provide charitable funds or other assistance only to people that hold certain extreme views or beliefs

•              an event which is nothing to do with the charity is a platform for extremist views or is inviting a speaker known to have made inappropriate extremist comments. The charity's name is associated with the event because the organisers are donating the fees from the event to the charity and using this in its advertising literature to attract attendees and connect the charity to it

•              the communications network of a charity allows those intent on promoting and developing extremist views with a view to encouraging terrorism to contact or meet each other. Sometimes the charity may simply provide the opportunity for them to meet. This may happen without the knowledge of the charity or its trustees.

9. More charities now have websites, blogs and use Twitter, Facebook, Whatsapp and other social media and we have seen instances where extremist and hate material has been hosted in these media.  This means charities and their trustees need to be much more alert to the risks around website and social media use and more actively manage their online presence.

How abuse of a charity for extremist purposes breaches charity law

10. The regulatory position is clear. Charities, trustees, staff and volunteers must comply with UK law and so must not promote or support terrorism or extremism, or other illegal conduct, such as racial or religious hatred. Nor can a charity's name, premises or money be used to promote extremist and other inappropriate activities.

11. A charity's activities can only be in pursuit of lawful charitable purposes. So concerns about a charity involved in promoting, supporting or giving a platform to inappropriate radical and extremist views would call into question whether what it was doing was lawful, in furtherance of its purposes and for the public benefit.

12. It is not acceptable under any circumstances for charities to promote or support views which are criminal. Beyond that there are a range of views that may not be appropriate for a charity to support under charity law even where those views are not violent or not likely to incite violence, do not breach terrorism laws relating to the glorification of terrorism, or constitute incitement to racial or religious hatred.

13. Charities will therefore be in breach of fiduciary duties under charity law where they promote extremist views and use radicalising materials. This is because trustees must always act in the best interests of their charity. They must act reasonably and prudently and they must ensure that the charity’s funds, assets and reputation are not placed at undue risk, and that it is complying with the law.

14. Charities therefore need to effectively and responsibly manage risk and strengthen safeguards against all abuse, including abuse for extremist purposes, so they protect their charity, act lawfully, and maintain public trust and confidence. The higher the risks or likelihood, the more charities need to do. This is why the Commission expects charities that regularly carry out activities or events involving speakers, or that use literature as part of their work, or host blogs and websites to do more to carefully consider and manage those risks.  

15. Where charities are considering funding non-charitable bodies, they must ensure that funds are used only for charitable activities which further the purposes of their charity and do not expose it to undue reputational or other risks.. If a charity funds or works with a partner that espouses or fails to condemn extremist views and terrorism, failure by trustees to ensure charitable funds are applied in accordance with their charity’s purposes and/or take steps to protect their charity’s assets and reputation would also impact on public  trust and confidence in that charity and give rise to regulatory concerns, prompting the Commission to act.

Extent of the risk

16. It is important to recognise that the risks are not even across the sector and affect different charities in different ways. The risks are likely to be higher for those charities that regularly run speaking events, use literature to promote the charity's purposes or allow other charities or organisations to host events or activities from its premises; but the risks will still vary from charity to charity. These are likely to include:

• charitable think tanks and debating societies
• students’ unions
• religious charities
• schools, colleges and universities
• other charities involved in education
• bookshops and other charities that provide or promote literature and educational materials
• charities that provide or promote literature and educational materials through electronic media, including television, radio, internet, social media or physical recordings.

17. The Commission has increased its compliance and enforcement work as well as its collaboration with partner agencies. Subject to adequate resourcing going forward, the Commission’s capability and capacity to do this will continue.

18. There have been instances where the Commission has investigated and intervened in individual cases where concerns arose.

19. In 2013, a student union and an aid charity organised a fundraising event due to feature hate speakers known to promote extremist views and attitudes towards women, homosexuality and Judaism. The event was cancelled after the Commission intervened and ensured the charities put effective speaker controls and procedures in place.

20. Earlier this year the Commission opened statutory investigations into two charities exposed by undercover filming broadcast in an ITV documentary where individuals connected to the charities made extremist statements.[2]

21. In a recently published inquiry report, the Commission found a charity hosted inappropriate material online which encouraged violence and denigrated particular faiths, legitimised the killing of gay people and condoned the killing of Muslims. Although acting quickly to take the charity’s website offline when the material came to their attention, the regulator was critical of the trustees for not monitoring its website content and being too slow to implement new procedures to ensure extremist and hate material was not promoted.

22. The Commission’s annual compliance report Tackling Abuse and Mismanagement 2013-14 included details of our work including a case where a charity’s name had been used to promote an event where a speaker known to express extremist views was making an address.[3] The Commission’s report for 2014-15 will record that we carried out 19 assessment cases that year where there were regulatory concerns relating to extremism and radicalisation.

Reducing the abuse of charities and how the Charity Commission works with charities and institutions where there are risks of radicalisation

23. The Commission is not a prosecuting authority and does not conduct criminal investigations. Where there are concerns about suspected extremist abuse connected to a charity that may be criminal, the Commission always liaises with and works closely with the police and other law enforcement agencies. However, the Commission does have a role to play. Its approach in tackling this kind of abuse is to supplement the criminal regime through regulatory oversight by the Commission and the charity law framework.

24. The Commission’s regulatory role in tackling this kind of abuse is to ensure that trustees comply with their legal duties and responsibilities in managing and administering their charity. The regulatory focus is on the conduct of the trustees and whether they are acting in accordance with charity law and appropriately managing the risks associated with their charity’s activities.

25. We act in a proportionate way, targeting action where it is necessary and likely to have best effect.  If the Commission finds a breach has occurred, we may need to take regulatory action. This can range from regulatory guidance, and setting action plans, through to inspections, opening an inquiry and using powers. Regulatory advice and guidance places the trustees on notice that they need to take action to resolve the matter and the Commission will monitor compliance and follow it up. In other cases, regulatory action involves a compliance and inspection visit. This can be part of monitoring work, which may check that action has happened or in itself result in the Commission requiring trustees take specific steps to further address or remedy the breach.

26. In the most serious cases the Commission may open a statutory inquiry, even if the trustees are cooperating with the Commission and other agencies, including the police, and if necessary exercise its legal powers to ensure compliance and protect the charity and its assets. 

27. We have seen a charity remove a trustee as a result of concerns raised by the Commission. A new trustee board is in place and significant improvements in governance are apparent. Our intervention has seen the implementation of speaker controls and policies in cases where no such controls previously existed. Where concerns were identified in respect of web content or proposed guest speakers the Commission has, with support from trustees, secured the removal of material or withdrawal of speakers.

27. It is essential that we have the powers to deal effectively with terrorist and extremist abuse of charities, particularly where trustees do not co-operate or act responsibly.  One of the weaknesses in the current legislative framework is that most of the compliance powers are aimed at dealing with financial misappropriation and risk to charity property. The Commission has asked for improved and new powers to close loopholes and gaps in the current framework, which would assist in dealing with all types of abuse, including extremist and terrorist abuse of charities. The Protection of Charities and Social Investment Bill is currently in its passage through the House. 

28. As well as enforcement, effective regulation places a strong emphasis on prevention and collaboration. The Commission has provided support to trustees by raising awareness of the risks from extremism and providing regulatory advice and guidance to improve standards in governance, and compliance with legal duties.  The Commission does this to help charity trustees take the necessary steps to protect their charities from the risk of abuse, and ensure that they act responsibly if concerns arise.

29. The Commission has published an online toolkit Protecting charities from harm including a chapter on Protecting charities from abuse for extremist purposes and managing the risks at events and in activities.

30. This guidance explains the legal requirements for charities under both criminal and charity law so trustees can properly discharge their duties in the interests of their charity. These are the legal requirements that the Commission will hold trustees to account for if a regulatory concern arises. Following this guidance helps trustees demonstrate they are complying with their duties and responsibilities.

31. The Commission also undertakes awareness raising, advice and outreach work with different parts of the charity sector including specifically managing the risks from extremism associated with speaker events and publications, and internet and social media activity. During 2014-15 the Commission reached 80 charities in its outreach work with higher and further education institutions and student unions and over 300 trustees, managers and advisers of faith charities in training events. Collaboration like this is important in building sector knowledge and awareness.

The impact of the “Prevent duty” for the charitable Higher and Further Education sector

32. The “Prevent duty” is placed on specified public authorities to have due regard to the need to prevent people from being drawn into terrorism contained in the Counter-Terrorism and Security Act 2015. This new Duty applies specifically to the Higher and Further Education sector, which includes universities and further education colleges, many of which are charitable.  It does not apply directly to student unions although they are indirectly affected, as explained below.

33. Guidance on how to comply with the Prevent Duty for Higher and Further Education institutions passed through the House of Lords and commenced for these bodies in September 2015. HEFCE, as the primary regulator, will be regulating the Higher Education sector compliance with this Duty, and BIS, through Ofsted, will regulate the Further Education sector. The Commission has been liaising with UUK, NUS, BIS and HEFCE to ensure that existing charity law duties are taken account of.

34. Student unions are not named as authorities subject to the duty. However because the duty has been placed on universities, student unions will at least indirectly be affected.

35. There has been some attention given to this new Duty, some concern about the burden it places on authorities and institutions, what it means in practice and how it can be discharged. For charities affected, it is important to note that irrespective of whether the Duty existed, as charities subject to charity law, student unions, universities, Higher Education and Further Education institutions, whether registered with the Commission or not, were already required under charity law to discharge their legal duties and responsibilities to manage the risks from extremism associated with speaker events and publications, and internet and social media activity, and respond responsibly and appropriately if incidents arise.

36. The Commission has written to trustees of student unions to remind them of this responsibility and offer to meet any student unions that would like further guidance and advice from the Commission in this respect.

Summary

37. In summary, charities and their work can be an important protection against extremism and terrorism, which underlines the importance of meaningful and effective collaboration, discussion with and support for them by government.  They are also vulnerable to abuse; and there have been occasions charities have been used as conduits by extremists.

38. Where we have been able to act we have made a difference. By providing regulatory guidance and advice for charities on managing the risks from extremism and through our outreach and prevention work with the sector we have increased trustees’ knowledge and understanding of the risks in this area and their legal duties and responsibilities to manage those risks, and have increased their confidence in knowing what to do when concerns arise. Through our regulatory work investigating and monitoring charities where concerns have been identified, trustees have been required to take action to remedy breaches and put effective risk management procedures and controls in place and we have disrupted and prevented activities of concern.

39. The Commission believes that there is more charities can do themselves to strengthen procedures and controls to manage the risks and they need support to do so. It is important for us to continue, through our outreach and prevention work, to work with charities, raise awareness of the risks and provide trustees guidance to assist them with this to ensure they fulfil their legal duties and responsibilities.

40. This is why addressing the abuse of charities for terrorist or extremist purposes and protecting the sector from it is one of the Charity Commission’s strategic priorities. We have an important role to play and it is vital we have both the resources, legal powers and effective tools to deal robustly but proportionately with it.

Charity Commission                                                                                    October 2015

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