Charities and voluntary and community groups hard-hit by the recession must think about merging or collaborating with other organisations, according to Charity Commission chief executive, Andrew Hind.
Despite most Third Sector groups currently struggling to weather the economic storm, a recent Charity Commission report has found that only 3% have considered teaming up with other similar charitable organisations.
In response to these worrying findings, the Charity Commission is proposing to offer merger advice and resources in the coming months.
The Commission chief executive, Andrew Hind, has also urged charities and voluntary groups to take more important measures to ensure their survival. He claimed making the best use of their existing resources and installing sound governance procedures were essential steps for any charitable organisation in the current climate. He also suggested cutting away any secondary activity not entirely relevant to charitable pursuits and encouraged groups to think about the positive opportunities a recession might throw up, such as more volunteers.
Source: Charity Commission
Third sector umbrella bodies NCVO, Acevo, the Charities Aid Foundation, the Charity Finance Directors’ Group and the Charity Commission, have this week released figures they gathered in their September survey detailing charity losses in the Icelandic bank collapse.
The survey results, released following a consultation with government ministers, suggest that charities have lost between £86.6 and £200 million in the recent Icelandic banking troubles.
Sector representatives present at the consultation urged the government to act quickly and suggested the implementation of a loan guarantee scheme for charities that have lost money.
Posted in Sector News
Tagged Acevo, charities, Charities Aid Foundation, Charity Commission, Charity Finance Director Group, consultation, government ministers, Icelandic bank collapse, NCVO, survey, third sector
Reassurance for smaller charities caught in credit crunch crisis…
Speaking on behalf of Gordon Brown at Prime Minister’s Questions yesterday, Harriet Harmon, Leader of the House of Commons, reassured small charities that any funds they have deposited in Icelandic banks are safe. According to Harmon, small charities would receive the same protection as individuals, with any assets up to the value of £50,000 being protected against loss.
This confirmation comes at the end of a turbulent week for the voluntary and charity sectors. Voluntary groups and charitable organisations have reacted with frustration and disappointment at the government’s apparent lack of concern for them and spoken out about the “serious threat” of the credit crunch on their existence.
Harmon went on to add that work was also being carried out on behalf of larger charities. It is hoped that a cash injection of £100 million and the freezing of Icelandic bank assets will safeguard any deposits belonging to larger charitable organisations.
Read the latest guidance from the Charity Commission on this matter here:
Source: Charity Commission
Sums not adding up?
Cash, an organisation which provides accountancy training to small voluntary organisations, this week claimed that up to 35,000 charities and voluntary groups are in financial chaos.
Now, this may strike you as a familiar story, but think again – you might be surprised to note that this proposed disarray is not because of lack of funds but because of poor accountancy skills.
In response to the Charity Commission’s claim, made last week, that bad accounting is responsible for most charity mismanagement cases, Cash outlined a widespread poor standard of accountancy across the voluntary and community sector.
According to Cash the solution is simple: more training. Funding for a National Vocational Qualification in charity accountancy, as a means of helping voluntary groups make sense of accounting and the complex rules and regulations implemented by the government, could see the sector strengthening its grip on money management.
Source: Third Sector