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MISS

We’ve seen a big PR hic-cup, for Comic Relief today with the news that Panorama have discovered that it invests money in companies such as arms manufacturers as well as the  alcohol and tobacco industries. It’s an issue which highlights the need for Charities to understand the value of their reputation and that PR thinking has to enter every dimension of an organisation’s operation, not simply saved for its marketing output.

The revelation has attracted considerable media attention (see The Guardian, The Independent, BBC News ) most of which is critical and most of which will damage the reputation of one of the UKs most powerful charity fundraisers. Yet it seems no-one in this giant in the charity world appears to have seen this coming, despite the fact this very issue has been one which the sector has been dealing with for decades.

I personally recall discussions at one Charity I was involved with 20 years ago regarding where it’s funds should be invested and the very clear outcome being that it had to take an ethical approach if its reputation was to remain spotless. The returns might be lower than other open funds, but the risk to the relationship between the organisation and its existing and potential supporters outweighed the financial aspect.

What we understood then and what hasn’t changed today is that Charities trade on their name – how donors feel about them is essential, literally the difference between the hand going into the pocket or not. Surely someone in a charity working with projects in countries torn apart by war, providing support to people with drug and alcohol problems in the UK and schemes to support people with health issues must have seen the negative implications of being  investing in the very industries at the root of some of the issues it deals with?

The response too has been lack lustre – in an interview on the BBC the CEO of Comic Relief tried to place the blame on the Charity Commission’s guidelines on charity funds investment, clearly a prepared line to try and spread responsibility. Unfortunately the previous interviewee, a specialist in charity fund management and investment had already made it quite clear that Charities can invest in ethical schemes with lower returns when it is in line with their operational delivery.

Comic Relief are in a hole now and just about the only thing in their favour is that they have almost a year to dig themselves out before they once again ask the British public to put their hands in their pockets. By then they could have sorted out an ethical investment portfolio and/or they can hope that the public will have forgotten.

My advice would be to start shifting the money now and to do it in a very humble and public manner.

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