Today's article in the Civil Society highlights the Charity Commission’s latest report showing a significant rise in whistleblowing disclosures, reaching its highest levels in nine years - a 72% increase compared to the previous year’s disclosures. 

This sharp increase raises important questions about what is happening in the charity sector and how organisations can better respond to whistleblowing concerns.

As a specialist in employment law and an experienced investigator for the charity sector, I frequently support charities in navigating the complex terrain of whistleblowing and handling sensitive disclosures. 

This recent data from the Charity Commission presents a timely opportunity to discuss how charities can create safer, more transparent workplaces and reduce the risks associated with whistleblowing mismanagement.

Key trends in whistleblowing disclosures

The Charity Commission’s report points to three primary issues underpinning whistleblowing disclosures this year: governance failures, safeguarding and protecting people, and financial harms. Alongside these primary categories, other issues raised include conflicts of interest, disputes, reputational damage, GDPR breaches, and concerns about delivering a public benefit. 

Who is raising the concerns?

One noteworthy aspect of the Charity Commission’s report is the source of these disclosures. A significant proportion—54%—came from employees and former employees, reflecting the essential role that staff play in highlighting internal issues. With 179 disclosures from current employees and 124 from former staff, it is clear that the workforce is a critical channel for raising concerns. Meanwhile, 46% of disclosures originated from non-employees, including trustees, volunteers, and members of the public, who collectively submitted 258 disclosures.

The prominence of employee-driven whistleblowing underlines the need for robust internal whistleblowing systems. When internal mechanisms are weak or absent, staff may feel compelled to bypass the organisation altogether and report directly to the regulator.  This can result in reputational damage and increased regulatory scrutiny—both of which are preventable with the right systems and culture in place.

Charities’ responses and the need for robust whistleblowing frameworks

The Charity Commission’s data shows that out of the 561 disclosures, 471 triggered new investigations, while the remaining cases were linked to ongoing investigations. The high rate of investigations indicates that many of these disclosures are well-founded, necessitating immediate attention and corrective action. In addition, complaints from the public have risen by 50%, suggesting a broader perception issue that charities need to address.

Given these findings, it is essential for charity leaders to reassess whether their internal whistleblowing frameworks are fit for purpose. 

My advice would be that a well-structured whistleblowing system should:

• Encourage internal reporting
• Provide training and support
• Establish clear reporting channels
• Ensure accountability and transparency

A call to action for the charity sector

The increase in whistleblowing disclosures should serve as a wake-up call for charities to invest in their internal whistleblowing systems. As the Charity Commission notes, the precise reasons for the surge in disclosures are unclear, but economic pressures and the impact of post-Covid recovery may be contributing factors. In this climate, having strong governance and safeguarding frameworks is more critical than ever.

Charities that fail to invest in these areas risk not only regulatory action but also the erosion of trust from employees, beneficiaries, and the public. By taking a proactive approach and working with experts who have specific expertise in charity law and whistleblowing legislation, charities can turn whistleblowing from a reactive measure into a positive force for accountability and improvement within their organisations.

As an employment lawyer and a whistleblowing investigator, I have seen firsthand the benefits that robust whistleblowing policies and expert legal support can bring. A well-implemented system, supported by specialist advice, can protect both the organisation and its staff, fostering a culture of integrity and trust. For charities facing increased scrutiny and reporting, now is the time to review and strengthen these systems to ensure they are fit for the future.

How can we help? 

A key requirement of any whistleblowing investigation is impartiality. We can offer experience in conducting investigations and understanding the importance of maintaining neutrality, managing confidentiality, and handling sensitive information. Such involvement helps ensure that investigations are conducted fairly and that all parties are treated with due process, reducing the risk of legal claims or damage to internal relationships.

Whistleblowing can attract public and media attention, especially when concerns are reported externally to regulators. We can guide charities through these situations, helping to protect your reputation while ensuring that the issues are addressed thoroughly and transparently. We can also advise on communication strategies to maintain stakeholder confidence.

Beyond handling individual cases, we can support with designing and implementing effective whistleblowing frameworks that meet legal requirements and sector-specific guidance. This includes reviewing existing policies, training staff, and establishing clear reporting channels, all of which contribute to a culture of accountability and trust. 

If your organisation would like to discuss implementing or improving your whistleblowing framework or needs expert guidance on managing a whistleblowing investigation, please feel free to reach out.