The whole charity sector in the UK is going through a turbulence period as its funding streams, particularly from govt sources are on the decline. Well, while the state of funding declination is widely believed but the issue of uncertainty i.e not having a clear picture is the main source of anxiety at this moment.

Most charities we work with are having some kind of re-budgeting, reorganising or redundancy process. The situation is also forcing charity trustee/management to explore the alternative way (e.g cheaply)  of doing  things to achieve the same mission. In addition to usual cost saving exercises, charities are increasingly exploring to outsource some internal function, and some are going an extra mile to work with others through the merger, etc. Perhaps there were better ways of doing business that never explored but the funding crisis just created the opportunity.

Often in these circumstances, too much attention is given to save jobs within the charity. Trustees need to be mindful that the charity exists for a cause where saving jobs are not a prime charitable objective, therefore, need to exercise their judgement carefully. If the mission of the charity is achieved through working with other even through merger/amalgamation or with outsourcing existing internal function then there should be no hesitation to go for these changes.

0 Comments