EXCLUSIVE
Guide Dogs Victoria was devastated by the Josh Frydenberg political advertisements scandal, with donors leaving for good, and no part of the organisation left unharmed, says its chief executive.
More than two-and-a-half years after the charity was thrust into the biggest scandal of its 65-year history, Guide Dogs Victoria has finally lifted its silence over the affair.
The impact of the Frydenberg affair was “huge” and far-reaching, Guide Dogs Victoria chief executive Nicky Long has told The Klaxon, in an exclusive and wide-ranging interview.
“The impact on the organisation has been huge,” Long said.
“I don’t think there’s anyone internally or even at a volunteer level that didn’t feel the ripple effects of what occurred”.
“I don’t think there’s anyone internally or even at a volunteer level that didn’t feel the ripple effects of what occurred” — Nicky Long
Weeks before the 2022 federal election, it emerged Guide Dogs Victoria’s then chief executive Karen Hayes had appeared in political advertisements spruiking Frydenberg, then the Federal Treasurer.
It is illegal for charities to endorse politicians or political parties.
Hayes was “stood down” within days of the scandal breaking and Iain Edwards was replaced as Guide Dogs Victoria chair.
Yet despite the seriousness of the affair — and widespread public concerns — aside from a handful of carefully-worded written statements, Guide Dogs Victoria has refused to comment on the scandal or its aftermath.
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Guide Dogs Victoria CEO Nicky Long. Source: Guide Dogs Victoria
Now, Long — who took the reins in April last year — is breaking that silence, shedding light on the impact of the scandal that engulfed one of Australia’s most trusted charities.
“We had donors who said ‘we’re out of here and we’re never coming back’,” Long told The Klaxon.
“That was pretty harmful.
“Our fundraising was absolutely impacted,” she said.
“We had donors who said ‘we’re out of here and we’re never coming back’” — Nicky Long
As to whether the damage from the affair remained ongoing, Long was unsure. “How long is that tail? I hope it isn’t (long),” she said.
“We also have a lot of really loyal people who recognise it was a critical bump in the road, and on the other side of it they’re sticking around”.
The full financial impact of the scandal — much of Guide Dogs Victoria’s revenue comes from donations — was also hard to determine.
Long said donations had not seen a “dip” but had “stabilised”, or stopped growing.
“When you’re investing in fundraising you want growth — I’d say we’ve held,” she said.
Long is now hopeful that the dust has settled.
“When I started I put a line in the sand, with staff, with everyone, and said we are entering a new era,” she said.
“Not to say the bruises of the recent past aren’t there, but we can’t keep looking back, we have to look forward.
“And so it’s been quite a task to get everyone back up feeling positive about the future of Guide Dogs and I think…we are there,” Long said.
“It’s been quite a task to get everyone back up feeling positive about the future of Guide Dogs” — Nicky Long
Guide Dogs Victoria is located in the inner-Melbourne federal seat of Kooyong, which had been held by the Liberal Party since the party was founded.
At the May 2022 election Frydenberg lost the seat to independent Monique Ryan.
Weeks out from the election, in flyers distributed in Kooyong, and in advertisements posted online and to social media, Hayes was featured, holding a puppy, as “Chief Executive Officer, Guide Dogs Victoria”.
“I’ve known Josh for over a decade and I could not have asked for a better local Federal Member for Kooyong than Josh Frydenberg,” Hayes is quoted.
“He (Frydenberg) has always maintained his strong and unwavering commitment to his local Kooyong community for whom he has delivered in so many ways.
“In our darkest moments Josh was there providing support.”
Frydenberg with Hayes on four seperate visits to Guide Dogs Victoria. (Clockwise from top left: June 2018; March 2016; Sep 6 2013; date unknown. Source: Josh Frydenberg/Wayback Machine
The scandal drew the spotlight on the charity, and revealed it had been heavily utlilised by the Liberal Party for campaigning for at least a decade.
It also put the focus on the charity’s operations more broadly.
Weeks after the election, The Klaxon in June 2022 revealed taxpayers Guide Dogs Victoria revealed Guide Dogs Victoria was charging taxpayers four times more than a decade earlier but delivering fewer services — and that it spent more money on fundraising than delivering guide dogs.
Later that month we revealed Guide Dogs Victoria’s then “capital fundraising” boss made over $87,000 in donations to the Federal Liberal Party, before the Federal Coalition gave millions of dollars of taxpayer funds to Guide Dogs Victoria.
In November 2022, with Guide Dogs Victoria apparently in damage control, we revealed at least one of its executives had been lying to donors about its performance, including making false claims about The Klaxon’s reporting.
(The following month we revealed a string of executives had departed, including the charity’s general manager responsible for marketing and communications and its chief financial officer).
The Klaxon also revealed the charity had missed every guide dogs target since 2016; that in the 2021 financial year it had delivered just 35 dogs; and that in 2021-22 it delivered the lowest number of dogs on record.
Federal election eve, September 6, 2013. Source: Supplied
In January last year we revealed the Guide Dogs Victoria’s senior management and board had been warned of “politicisation” involving the Liberal Party back in 2013.
The following day it was announced Edwards was leaving the organisation and that Long had been appointed — but would start in around three months’ time, in “mid-April”.
The board was “pleased to confirm” it had appointed Long, then CEO of not-for-profit Expression Australia, “following the announcement of her resignation this afternoon”, it said in its January 13 statement.
“Nicky will join GDV in mid-April once she has served her notice period [at Expression Australia],” it said.
Long started at Guide Dogs Victoria on April 17.
After the scandal broke, it was announced Edwards would stand down as chair and fill the position of “interim CEO” until a new CEO was found.
On January 13 it was announced Edwards would depart Guide Dogs Victoria altoghter.
More reports from The Klaxon:
2022:
May 31 — Guide Dogs CEO “resigns”: major questions remain
June 23 — Spends more on fundraising than dogs
June 27 — Fundraising boss gave $87,000 to Liberal Party
Nov 20 — Guide Dogs Victoria caught lying to donors
Dec 5 — Guide Dogs executives exit
Dec 16 — Supplies lowest value of dogs on record
2023:
Jan 12 — Guide Dogs Victoria board warned of “politicisation” a decade ago
Apr 7 – Top dog departs after Klaxon expose
That month, and again in May, The Klaxon requested an interview with Long. We received no response.
A week ago, The Klaxon approached Guide Dogs Victoria with concerns regarding its performance, from its last two annual reports, and again requested an interview with Long.
This time the request was successful.
“I don’t know that we handled dealing with you in the past very well,” Long said this week.
“My approach is always to meet with people and talk with them”.
When asked whether Guide Dogs Victoria had changed its stance regarding political endorsements or affiliations, Long was unequivocal: “Absolutely — you can’t do it”.
Long said she was confident improvements had been made, including “board changes”.
“I wouldn’t be the CEO here if I thought there was an ongoing issue, if things were in place that could see that ever happen again,” she said.
More to come…
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