Setting up and running a charity has changed. Gone are the days when a group of like-minded volunteers could simply come together to arrange events in support of a good cause. Nowadays charity activities have to be well-planned and executed, drawing on relevant expertise and skills.

Strategic thinking with clear objectives, a realistic business plan, a business-like approach, professional advice and good fundraising skills are critical for success. If these elements are missing, a charity might struggle.

Factors that can cause a charity to struggle

Increasing administrative costs. While charities still rely on volunteers, professional expertise in the form of solicitors, accountants and fundraising professionals is increasingly important. They need to be paid but members of the public can often be reluctant to donate if they think that too high a proportion of their gift goes towards administrative costs.

It is therefore important to be clear about the expertise that is being sought and the success that has been delivered as a result of bringing in that expertise. In the end the public wants to see their money well spent by a charity that is run effectively, efficiently and in compliance with the required rules and regulations and, most importantly, supports its stated charitable objectives.

Lack of planning. Registering with the Charity Commission for England and Wales is a relatively simple process. However, there are rigorous requirements of identifying trustees, setting up a structure, writing a governing document, and complying with financial responsibilities, which are all needed to provide a strong foundation for charities from the outset.

Writing a business plan, with an associated fundraising plan, is key. This doesn’t need to be War and Peace but only a few pages long. As a minimum, it should include the following:

• A vision of your charity’s goals or purpose and how you intend to achieve them
• Defining your position in the fundraising environment, including likely sources of funding
• Identifying your stakeholders – who you need to work in partnership with, who you need to influence and who you need to continue to inform about your activities
• Determining the type and level of resources you will need

Competition for income. Charitable giving by the British public has continued to grow steadily in an era of national austerity. According to Charities Aid Foundation UK, the British public donated £10.3 billion in 2018, compared to £9.7 billion in 2016. However, competition for those donations is rising. Currently, more than 185,000 charities are registered with the Charity Commission for England and Wales and this number is increasing by around 5,000 a year.

Although austerity hasn’t stopped members of the public from giving, it has had an impact on local and central government funding. Many charities receiving funding from these sources in exchange for providing services have seen those sources dry up, so they seek to make up the shortfall from public and philanthropic donations.

The only solution to this is having a good fundraising plan, standing out from the crowd by having a compelling vision and being able to communicate that vision to potential donors, supporters and volunteers.

Resistance to change. Making the changes necessary to put a charity on a healthy and more competitive footing can be difficult in the face of internal opposition; tact may be required to allay the fears of longstanding supporters about whether founding principles are being abandoned. Sometimes these supporters can assume that their charity should be able to achieve its aims on a wholly amateur basis at little or no cost.

If a charity comes to rely upon a few key active members, they can also become overwhelmed by the increasing professional and administrative demands of running a charity, to the extent that they avoid necessary reform.

To ensure you don’t get stuck in the past you need to put a robust and sustainable organisation in place, ensuring that responsibilities and workloads are shared equitably and that your leadership team learns about new methods of working and innovation in the charity sector.

Be open to change, learn from others, talk to experts and try new things.

Stefan Lipa Consultancy helps charities to meet their goals

Stefan Lipa Consultancy helps charities to achieve their fundraising goals. We work in areas including heritage, religion, education, youth, culture, museums, the theatre, music, health and community services.

We offer bespoke, impartial and honest advice with consultancy and management services for capital campaigns and revenue fundraising.

We work on projects with targets between £100k and millions of pounds, mainly in Hampshire, the Midlands and the south of England, providing accurate, impartial and frank assessments, every step of the way.

Free initial consultation

Contact Stefan Lipa Consultancy or ring us on 01264 860003 to arrange a meeting to discuss your particular circumstances and the services we offer. This meeting is completely free of charge, with no obligation on either side.

04.03.2019

For more information, call us on 01264 860003 or send an email.