Charity is everybody's business - do we know enough about the leaders?

Press release from the David Hume Institute

7th February 2022

New research shows a lack of diversity in Scotland’s top charity leaders.

Scotland’s leading independent think tank, the David Hume Institute, today publishes new research finding a lack of diversity in Scotland’s highest income charities.

The top 300 charities by income represent just 1% of the total charities in Scotland and control over £10 billion each year - 73% of the sector's total annual income - but their leaders are not representative of the communities they serve.

The research, which analyses the backgrounds of the chairs and chief executives of the 300 highest income charities in Scotland, finds that:

• Only 1 in 3 leaders (34%) are women and only 1 in 50 (2%) are black or Asian, compared to 10% female and 1% people from ethnic minorities in business and investment leaders

• 1 in 25 (4%) hold a top leadership position in another one of the top 300 charities. 

The research showed the picture is not uniform across the top 300 charities which include universities, colleges, housing associations, fee-paying schools, health and social care charities. 

Researchers also found it harder to find information about some organisations and their leaders than for other sectors in Scotland. There was less diversity and transparency for religious organisations and school leaders.

Susan Murray, director of the David Hume Institute, says:

“In a sector that is often associated with bake sales rather than billions in income, many will be surprised at the scale and the range of charities analysed in this research. 

“We thought we would find it easier to find out about leaders in this sector and that was not the case across the board.  

“Charitable status comes with high levels of public trust and tax breaks, as well as the legal responsibility to deliver public benefit. But not all organisations are open about who is in control. It is hard for the public to hold people to account if they don’t know who they are.” 

Unlike businesses, there is no searchable public register of who is making the decisions and it is difficult to find out when an individual is connected to multiple charities. Before the creation of Scottish Charitable Incorporated Organisations) many more charities were limited companies and were required to declare their directors.

The research recommends an extension of the Scottish Charity Regulator’s (OSCR) powers to create a publicly searchable register of charity trustees to bring them in line with company directors. This change will increase transparency and enable monitoring on diversity. 

The research found one significant difference to the recent analysis of business leaders; there was a wider range of experience in the two key leadership positions, often with the Chair and CEO having professional backgrounds. In both roles, the public sector was the most common background at 18% and 19% respectively:

Susan Murray, Director of the David Hume Institute, continued:

“Scotland needs all its current top leaders to actively champion diversity and provide the opportunities to ensure faster progress. 

“Increasing diversity of thought is in everyone’s interests as it helps avoid the pitfalls of group think, and improves risk management and productivity. More equal societies have higher productivity, and high productivity allows more investment to create more equal societies. 

“Charity leaders are no different and if anything, have more responsibility to champion diversity given their legal duty to deliver public benefit.”

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Press release: action to make Scotland’s budgeting clearer

11th August 2021

Today the David Hume Institute publishes a briefing paper proposing a new agreement on multi-year budgeting to deliver more open discussion about funding for public services and to enable longer-term planning for their delivery which will support a more open conversation about spending plans and investment choices. 

Over the last year the David Hume Institute’s Action Project considered the actions needed to move faster towards a more prosperous, sustainable, inclusive and fair country.  

Multi-year planning helps effective investment and productivity, and can be particularly useful on longer term projects, many of which are linked to climate action.

Despite repeated calls over many years to publish multi-year spending plans, it has proved difficult for Scottish Government to achieve this.  As public finances become even tighter post pandemic, this will remain a challenge.

Public and third sector organisations want more certainty about funding to allow them to plan for more than one year at a time. Draft multi-year budgets will help public services plan more efficiently as we emerge from the pandemic.

The Institute’s paper proposes a way forward for the Scottish Parliament, Scottish Government and Audit Scotland to make multi-year budgeting the established norm in Scotland.   

Susan Murray, Director of the David Hume Institute, says:

“The Scottish Parliament and Scottish Government must work together to make multi-year budgeting the established norm in Scotland.  More open discussion about money and budgets, the predictions, assumptions and choices being made is important for Scotland is to achieve its climate, economic and equality targets.

The urgency for this change is backed by findings from the Institute’s Action Project - Scotland’s largest multi-generational research in the last five years. 

Multi-year budgeting would have an enabling impact for organisations, businesses and charities across Scotland.”

Notes to editors:

• For media enquiries please contact Susan Murray, Director@davidhumeinstitute.com 

• The David Hume Institute is an independent Scottish think tank which works towards a prosperous, sustainable, inclusive and fair Scotland. Find out more here.

• The David Hume Institute’s Action Project brought together people from across Scotland to consider the actions needed to move faster towards a more prosperous, sustainable, inclusive and fair country.  Through facilitated conversations with over 5,000 people we identified actions which will help Scotland build forward better. 

• The David Hume Institute worked with partners to reach people of all ages and backgrounds across Scotland.  These included U3A, the Scottish Youth Parliament, the Children’s Parliament and local organisations like InspirAlba in Campbeltown and Resonate Together in Alloa 

• WhatsYourAction.scot research investigated people’s thoughts on action they would like to see to build a more prosperous, sustainable, inclusive and fair country. Whatsyouraction.scot is a resource for everyone who lives in Scotland  and wants to build forward better. WhatsYourAction.scot wants to inform positive action by magnifying real people’s voices and helping them know they are not alone.

• This briefing paper was developed with support of the Action Project Steering Group, with special thanks to Eleanor Ryan and Stephen Boyle with additional support from Professor David Bell and Dr Katherine Trebeck. 

What next for Scotland’s places?

Global Expert considers the actions needed to help all of Scotland’s places thrive post-pandemic

A new report by Professor Duncan Maclennan, commissioned by the David Hume Institute, examines how the country can move forward to A Scotland of Better Places.  

The report explores how thinking has to move to comprehending place policies that match real social, environmental and economic systems and that connect places rather than separate them into different, arbitrary categories for policy action. 

Covid shone a light on the places in which we live, work, study, play and grow.  Our places will play a central role in Scotland’s recovery. They are inter-connected, inter-dependent and impact on every aspect of our lives.

The report is part of David Hume Institute’s Action Project investigating actions for Scotland to move faster towards a country that is more prosperous, sustainable, inclusive and fair. The project engaged more than 4,500 people from across Scotland, bringing together a broad range of perspectives. 

Professor Duncan Maclennan said “There is not a single magic action to make all of Scotland’s Places thrive. Over the years there have been many policies, strategies and initiatives, often top down and not involving local people. The events of the last year have dramatically changed many people’s relationships with the places in their lives.  

This is an opportunity to build forward better from Covid-19 and recognise the connections within and between places.  There are major long-term changes required, and much agreement about what needs to change and how to change it. Bold policy choices could remake the sub-national governance and government of Scotland to match modern place challenges.”

Professor Maclennan suggests “Using reformed financial and tax structures, listening to communities and individuals, (and especially younger and poorer Scots) in the democratic processes that will make Scotland a more prosperous, sustainable, inclusive and fair country.” 

Professor Maclennan’s report is based on conversations with over 600 people in webinars.  The conversations revealed the broad range of new ideas that individuals and communities are ready to share and enact with governments.

Catch up with our launch event with report author Professor Duncan Maclennan and Deputy First Minister and Cabinet Secretary for Covid Recovery John Swinney MSP.

Blog: Back to the Future, a DeLorean and David Hume

Blog by Susan Murray, Director, David Hume Institute

January 2020

In an Edinburgh living room, more than thirty-five years ago, some friends gathered in front of a fire. They talked late into the night about philosophy, economics and public policy.  

This happened again and again. More friends joined them each time. Agreement emerged on an idea.  There was a great need for more enlightened thinking.  Public policy needed research and analysis that was not led or framed by London-based organisations.

“Truth springs from arguments amongst friends.”  David Hume

From this dusty living room, the eminent Sir Alan Peacock, the businessman Sir Gerald Elliot and a few friends started the David Hume Institute. The name was chosen out of a deep respect for David Hume and his thinking. 

From the start, the Institute was non-partisan and independent, founded firmly in the philosophy of David Hume – examining the evidence and creating informed debate.

"A wise man proportions his beliefs to the evidence." David Hume

So, while the rest of us were watching the film Back to the Future with a time travelling DeLorean, Sir Alan Peacock and his friends were discussing a new enlightenment. 

If we had a DeLorean we could go back thirty-five years and be a fly on the wall for these initial conversations.  Professor Chris Carter of Edinburgh Business School interviewed Sir Alan about this time, and these recordings are probably as close as I will come to understanding the origins of the institute. What’s changed in those thirty-five years?  What would Sir Alan think of our library of research and analysis? 

If we were lucky enough to have a DeLorean, we could go even further back in time.  We could time travel back to David Hume himself.  What would be David Hume’s favourite paper? And what would he think about the uncertain times we live in?

Since I started with the Institute in mid November, I’ve had lots of conversations about the organisation.  There are many people with close connections and fond memories of events or a favourite piece of research.

One of my most memorable David Hume Institute events was in 2013 listening to economist Danny Gabay discuss the state of the economy, quantitative easing and the pitfalls of house price led recovery.  When I googled him to see if it might be possible to invite him back to Scotland in 2020, I discovered he passed away at the age of just 47. 

Sadly, time is often too short. However, as the turn of the year is often a time of reflection, if you are willing to share your reflections on the institute’s work, we would love to hear from you.  Please get in touch to let us know your favourite piece of research or most memorable event by emailing: director@davidhumeinstitute.com

New Report: Who will do the jobs in Scotland?

Current employment rates in Scotland are at a near-record high. However, Scotland’s population is ageing fast and there is a low birth rate.

By 2041, the pension-age population is projected to increase by 265,000, while the working-age population is only projected to rise by 38,000.

This report discusses the challenges facing Scotland with changes to migration patterns and a shortage of workers. What can we do to meet the labour supply challenges in Scotland. Who will do the jobs?