Almost two-thirds of three senior investment executives at UK charities are concerned about potential reputational and brand damage, new data has found.

Investment management firm the Rathbones Group commissioned the market research company Pureprofile to interview senior people at more than 100 charities holding more than £4bn in investments in May.

The research found 65 per cent of respondents were concerned about reputational risk and one in three (32 per cent) said they were not becoming more concerned about damage to their organisation’s reputation and brand.

An increased scrutiny of charity activities was the biggest reputational concern with 70 per cent of respondents highlighting the topic.

Almost six in 10 (59 per cent) of charity executives cited concerns about the potential for brand damage from social media comments by people criticising their organisation’s work.

Increased scrutiny of investment policy is also seen as a potential risk to reputation with 44 per cent of charity executives highlighting it as a concern.

One in three (32 per cent) of respondents said they were worried that budget constraints on their services could lead to brand damage. 

Around 35 per cent of charity executives cited an increased scrutiny of staff as a reputational risk.

Andy Pitt, head of charities at Rathbones, said: “Charities are coming under increased scrutiny and the rise of social media is making it more difficult for organisations to answer criticism.

“Investment management and the squeeze on their budgets are adding to the rising concern about reputational and brand damage underlining the need for charity trustees to ensure their investment portfolios are aligned to their values and purpose.”