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Barrow Cadbury Trust’s CEO Asif Afridi and Sufina Ahmad, Director at John Ellerman Foundation write about the usefulness of the Foundation Practice Rating 

John Ellerman Foundation and Barrow Cadbury Trust have been backing the Foundation Practice Rating (FPR) since its inception five years ago. The FPR is a rating system that assesses the practices of UK-based trusts and foundations in relation to diversity, accountability and transparency, offering concrete ideas of what best and promising practice looks like in each of these areas for funders, and allowing those rated to understand their strengths and weakness and how they can make improvements. Ultimately though, the intention behind the FPR is to support all those that are assessed to improve their practice, alongside the wider sector.  

The last five years have been ones of immense change within the impact economy, as it seeks to address things like a fracturing of our political norms, shifts in the way we come together and relate to each other as individuals and a society, loss and degradation of our community assets, continued declines in our overall perceptions of wellbeing, the impacts of the triple planetary crisis (in terms of climate change, nature loss and pollution), anaemic levels of economic growth in the UK, and the implications of a continued cost of living crisis. These are also times of rising populism and polarisation, which means that, for some of us, the organisations we fund are being attacked in the media and having false information shared about them. As charitable funders our legitimacy to fund these organisations is also being questioned, with accusations of funders ignoring their charitable objectives and aims and being too political or too ‘woke’ or too liberal.  

In times of attack, our instincts might lead us to retreat or hide. To undertake funding work under the radar when required, so that funded partners are freer to do their charitable work, unencumbered by undue press attention and challenge. Lowering our profile or presence as funders might make us feel safer too. We might even think of this decision as being helpful, as we try to take the heat out of a situation. It could be argued that this approach, in some ways, runs counter to the work of the FPR which is zealous (and rightly so!) in its pursuit of increasing transparency, accountability and diversity within trusts and foundations. Charitable funding has long had a reputation of opacity, and initiatives like FPR challenge that and raise standards.

The dilemma of transparency and safety

So, what is a funder to do? Disclose information publicly, whilst accepting the potential risk for harm and attack of its work and its people? Wouldn’t it be safer to take down any data we might share about our staff and Trustees – be that their name, their pictures, their biographies, or the diversity monitoring data we might have collected? Perhaps, in the interest of safety, we shouldn’t share anything about the kinds of work we want to fund or who we have made grants to?  

There are no easy answers. But there are some critical points that we must engage with when making these decisions.  

The attacks faced by charities from the media, the far right and populists are heinous – organisations shouldn’t have to be removing their staff and trustee pages and their contact details, including work addresses, from their websites, or signage from their buildings, or installing practical safety measures for their staff at their place of work and their homes. Ensuring the safety of individuals is paramount and organisations should do whatever it takes to safeguard their organisations and the people they work with and serve.  

And at the same time, more can be done to build up defences against those forces that propagate unbalanced scrutiny and vexatious comments about charities in the media in the first place. Building cross-society support and trust in charities and reinforcing the critical role of civil society in our democracy is a good place to start.  

Public trust in charities is hard fought for. In 2025, 57% of people had high trust in charities, but nearly 10% have very low trust in charities. Yet, we have also seen examples of positive, coordinated, public responses to reporting and criticisms in the media against organisations like the National Trust and RNLI on issues of ‘wokeness’ and diversity, equity and inclusion (DEI). The more we can continue to build transparency, accountability and diversity in the sector, the more chance we will have of building broader coalitions of support across different parts of our society. This will serve to protect us more in times when we are under clear attack, as we can look to the public to come to civil society’s aid too. 

We know that there are very live debates about whether DEI data should be published externally by trusts and foundations. This is something that we have both had to consider in our own organisations, especially as we are smaller organisations and this might make information we share easier to trace back to a single individual (even when we try to anonymise the data). In some ways, the answer might be obvious given the risk of attack – we should not share the data – and in some cases of imminent harm to an individual or organisation that might be right. But for us, that doesn’t feel like the right answer overall. For a few different reasons.  

The first is purely practical. We could remove information from our website or annual report and accounts and that might give the impression of making things safe. The internet is vast and searchable, though, and therefore references to what you have shared in a personal or professional capacity might exist elsewhere and these can be used to pull together a picture of your diversity characteristics. Furthermore, with all diversity related disclosures, there is the option of using the ‘prefer not to say’ label and regaining some safety through this. 

The second is about purpose. The introduction of DEI monitoring through various legislation and industry standards in the UK has helped to draw attention to sectors that lag behind on inequality and discrimination. It has helped illuminate progress over time and to hold decision-makers to account for that. In recent years, there has been a widening retrenchment on DEI reporting. Goldman Sachs for instance, recently dropped a rule that it would refuse to take companies public if they did not have diverse enough boards, saying the policy had “served its purpose”. Those forces that seek to create a hostile environment for DEI reporting are often doing so because reporting is working. Despite the challenge and discomfort of speaking publicly about DEI in the current climate, supporting the long-term purpose of DEI monitoring and greater transparency on issues of equity and inclusion in the funding field feels like a prize worth fighting for.  

The third is about solidarity. We often talk about fences in our sector – on one side of the fence live the funders, and on the other side are those that we fund or seek to fund. This analogy has arisen for many reasons, including the power wielded by funders due to their wealth, their ability to exist in the long term, and their influence across the sector and beyond. It has also arisen because funders’ lack of transparency, accountability and diversity has made them feel unknowable to grant-seeking and grant-holding organisations. Initiatives like the FPR help to change this and show that we are working hard as a sector to address this meaningfully.

Breaking down fences

However in this age of significant disruption and interconnected crises that are impacting us locally, regionally, nationally and internationally, we need to commit fully to tearing down those fences. And fast.  

The funding sector has a particular responsibility to remove those fences. We can use our independence and proximity to wealth and power to model transparency and the need for change on issues of DEI. Trusts and foundations often have the means and resources to defend ourselves from attack in a way that those we fund might struggle with. We can invest in things like crisis communications support and legal advice readily. We also have a bit of capacity that means we can do some of this preparation before we are under attack. If an organisation we fund is being criticised, and we are named as one of the funders and therefore come under attack by extension, then we should see this as an opportunity that takes some of the heat away from that organisation.  

Increasingly, trusts and foundations like ours are trying to be part of the sectors and movements we support. Whilst we are not engaged in frontline and direct delivery work, we are trying harder to ensure that we understand the causes we support and removing barriers that exist between organisations and us, in order to lend our support (which tends to primarily be in the form of our grantmaking) more effectively. If we are doing this properly, then we should know that the notion of safety is a false one. Defensive mechanisms within philanthropy that shield the sector itself from some of the direct effects of inequality are, at times, only paper thin. Those working within philanthropy can both perpetuate and experience structural discrimination. Staff and trustees within our sector are on the receiving end of racism, sexism, disablism and so on – as they are in wider civil society. On the issue of disclosure of DEI information for instance, some don’t get the benefit of choice around non-disclosure. By dint of our names, our skin colour, how we physically present and more, you might be able to discern any number of protected characteristics.  

Ultimately, we need to protect our staff, trustees, funded partners and those we serve from the most egregious forms of trolling and discrimination when we can – but also be bold and open in challenging structural inequalities that matter to us all. As funders, we have opportunities to be transparent about where we are changing things on DEI, but also where we have made mistakes and where there is more to learn. The forces that seek to divide those who speak publicly about DEI through culture wars, misinformation and polarising media strategies are winning if we think that solidarity, collective action and embracing shared experience across civil society and other sectors isn’t the answer. 

The importance of transparency, accountability and diversity

Initiatives like the FPR have offered us a moment to reflect and demonstrate accountability to those we serve and we are grateful for that. In a field like philanthropy, there is a high degree of independence. Accountability often needs to be built directly by those working in the field because it is imposed by so few outside of it. Ultimately, it is our contention that the more transparent, accountable and diverse we are, the better it is for our sector, those we fund and wider society. It might be tempting to retreat and hide, but the information is already out there. And if we really do want to be part of the sectors we work in, without any fences between those we fund and us, then we need to use all of our resources (not just our funding) as fully as we can in order to highlight and dismantle structural inequalities that ultimately harm us all. 

The Foundation Practice Rating (FPR) is an objective assessment of UK-based charitable grant-making foundations. It looks at foundations’ practices in three key areas – diversity, accountability, and transparency.

The 2024/25 findings show gradual improvements in the sector, with progress across all three categories. However, diversity remains the weakest area, with no foundations receiving an A rating.

The report assessed 100 foundations, with some of the smallest outperforming the largest. Of concern was that 21 of the foundations assessed had no website, making it difficult for applicants to access crucial information. Indeed, none of the 12 foundations that scored a D in all three domains had a website, further highlighting accessibility challenges within the sector.

The FPR was initiated in 2021 by Friends Provident Foundation and is funded by a group of UK grant-making foundations, including Barrow Cadbury Trust.   This year, the ‘Funders Group’ includes: Friends Provident Foundation, City Bridge Foundation, John Ellerman Foundation, Joseph Rowntree Reform Trust, Joseph Rowntree Charitable Trust, Paul Hamlyn Foundation, Indigo Trust, Robertson Trust, and John Lyon’s Charity.

For more information, visit foundationpracticerating.org.uk where you can download a copy of the 24/25 report.

 

 

 

The Foundation Practice Rating (FPR) has published the results of its second year of assessment of UK foundations.  Foundation Practice Rating (FPR) is a project supported by thirteen charitable foundations, (one of which is Barrow Cadbury Trust).  Led by Friends Provident Foundation the project aims to increase and improve practice on accountability, transparency and diversity in the sector and to provide tools to make this happen.One hundred trusts and foundations in the UK drawn from the largest 300 in the Association of Charitable Foundations’ Giving Trends 2019 and all community foundations, were rated from A to D on accountability, transparency and diversity practice represented in information available to grant-seekers or the public.

The FPR is a crucial tool for grant-making foundations to understand our strengths and weakness in reporting on diversity, accountability and transparency, and helps to identify areas for improvement. It annually assesses foundations’ practices. The findings of this second year report show that while some foundations are making great strides in these areas, there is still work to be done to increase transparency, improve diversity, and to ensure we are accountable.

Barrow Cadbury Trust is pleased to see our rating has improved since the first year’s report.  We are currently overhauling our website and one of our priorities is to make sure we are communicating on those three areas, putting front and centre how thinking about and being committed to diversity is an integral part of how we work, alongside being transparent in how and what we fund, as well as accountable.  The new website, which we hope will be completed in the autumn, will contain more information on the three areas and be easier to navigate.  We hope it will raise our rating further.

The FPR encourages foundations to engage in regular self-reflection and analysis of practices, to be transparent about diversity, accountability and transparency practices, and to seek feedback from stakeholders. Foundations have also been sharing best practices and learning from each other’s experiences.

The FPR is an important step towards greater diversity, accountability, and transparency in the foundation sector. By working together, foundations can help build public trust and ensure that resources are being used in the most effective and impactful way.  Its approach is unique in the foundation sector because of the mandatory inclusion of foundations in the sample, setting it apart from other initiatives where foundations must opt in. In this way the FPR aligns with other sectors such as education and business which have their own rating systems.

How does the FPR work?

The FPR assigns a rating of A, B, C or D to each of the three ‘pillars’ of diversity, accountability and transparency, and an overall rating is also given. Giving Evidence, a philanthropy research consultancy, undertook the research process.

The sample included:

  • the 13 foundations/partners, including Barrow Cadbury Trust, funding this work;
  • the five largest UK foundations by giving budget; and
  • a random sample of community foundations and charitable foundations, as listed in the ACF’s ‘Giving Trends report 2021’. That latter includes only the top 300 largest UK charitable grant-making foundations.

Foundations were assessed using over 90 questions relating to criteria developed through a mix of existing standards, those suggested by charities through a consultation in 2021 and those developed through the research process.

All trusts were sent their scores to check for accuracy in November/ December 2022; we were allowed three weeks to raise any questions, corrections, or concerns.  A complex but transparent system of exemptions was applied to ensure the most accurate application of criteria to the many ways foundations work.

Overall report findings

  • Seven foundations received an A rating overall, an improvement over the previous year when only three foundations received this rating. Those foundations are diverse in size and structure. They include a community foundation (Oxfordshire Community Foundation), a large foundation (Wellcome Trust), and smaller endowed foundations (Blagrave Trust). The other foundations who got an A are: Esmée Fairbairn Foundation, John Ellerman Foundation, Paul Hamlyn Foundation and Walcot Educational Foundation.
  • Transparency was the best-performing pillar, with 57 foundations, including Barrow Cadbury Trust, receiving an A.
  • No foundation received an A for Diversity with almost half (48%) receiving the lowest rating of D.

Foundation websites

One finding was that foundation websites played a crucial role in communicating foundations’ mission, with information typically published about funding priorities, eligibility criteria, and information about what we have funded.  Disappointingly, the report found that 22 foundations in the sample had no website and for those which did have websites many were difficult to navigate and lacked a  search function, making it hard to find information quickly and easily.  And the cluttered design of some websites made the search process challenging.  Some websites only shared limited information, while others were difficult to find on the internet. Surprisingly, the website of one of the five largest foundations (by giving budget) was not found on Google and was only discovered by using a different search engine.

Conclusions

Overall, the report illustrates the need for foundations to improve their communications in relation to diversity, accountability and transparency. Read a copy of the report.

The FPR has been positively received by foundations and has the potential to drive positive change in the sector. The FPR website provides resources to guide and support foundations in improving their practices.

Twitter: @FPracticeRating
Contact Danielle Walker Palmour to join the funding group. Email:[email protected]