The Charity Commission is not regulating charities effectively and there is a gap between what the public expects of the Commission and what it actually does. The NAO has concluded that the Commission does not do enough to identify and tackle abuse of charitable status. Between 2007-08 and 2013-14, the Commission's annual budget fell 40 per cent in real terms to £22.7 million but the number of main registered charities has remained fairly constant at around 160,000. In response to budget cuts, the Commission has reviewed how it works and successfully reduced demand for its services, but it has not identified what budget it would need to regulate effectively. The Commission makes little use of its enforcement powers, for example suspending only two trustees and removing none in 2012-13. And it can be slow to act when investigating regulatory concerns. The NAO found cases where periods of several months passed during which the Commission took no action. Furthermore, the Charity Commission does not take tough enough action in some of the most serious regulatory cases. It is also reactive rather than proactive, making insufficient use of the information it holds to identify risk. The Charity Commission needs to think radically about alternative ways of meeting its objectives with constrained resources. It also needs to make greater use of its statutory powers in line with its objective of maintaining confidence in the sector; and develop an approach to identify and deal with those few trustees who deliberately abuse charitable status. This report publishes alongside another NAO report, the Cup Trust.

"The Charities (Protection and Social Investment) Act 2016 received Royal Assent in March 2016."--Page vii.

"How to Diversify Your Charity’s Board" offers a strategic roadmap for organisations to foster diverse and inclusive board leadership. Written by Sophia Moreau, a multi-award-winning Diversity, Equity, Inclusion and Governance expert, this guide helps charity boards cultivate a broad range of perspectives to drive innovation, improve decision-making, and strengthen organisational resilience. It covers critical areas such as board recruitment, onboarding, and inclusive governance, offering practical tools, case studies, and actionable insights to ensure diverse talent is attracted, retained, and empowered. How to Diversify Your Charity’s Board: A Practical Guide is filled with invaluable information, including: • What do we mean by trustee diversity? • Statistics on the diversity of trustees • Why diversify your board? • Common misconceptions about trustee diversity • Inclusion: Where do we start? • A word on the law: positive action and positive discrimination • Practical tips to diversify your charity’s board