Running a charity presents a unique challenge in the business world. While charitable enterprises play a pivotal role in supporting and improving the lives of many, they are also a major employer, with an estimated 900,000 working within the sector. Balancing the finances of a charitable organisation while ensuring social value is maintained at all times, can be challenging at the best of times, however, the events of recent years have pushed some to breaking point.
Barely any sector escaped the Covid-19 pandemic unscathed, and charities were no exception. With thousands of charity shops forced to close their doors for months at a time, along with countless fundraising activities being cancelled, those charities who rely on donations from the public have been hit particularly hard.
The aftermath of the pandemic has left huge funding holes which need to be bridged, all the while demand for services looks set to continue to rise. This increased demand leaves the door open to new entrants, which not only increases competition but also spreads available funding even thinner.
At Begbies Traynor, we understand the nuances in managing a charitable organisation, and can provide the sector specialist help and advice you need when pressure is building and swift action is required. In a sector where reputational risk is high, any question marks over a charity’s integrity can be hard to overcome. This is why it is vital you seek the services of trusted experts who understand the diversity of your industry, are sympathetic to the compliance and reporting needs you need to adhere to, while also being attuned to the opportunities present.
We are on the Interim Manager panel of The Charity Commission and work alongside trustees and other stakeholders to provide insolvency, corporate finance, restructuring and a full complement of business advisory services to charities across the country, helping to develop practical solutions even in the most demanding of situations.
Regardless of whether the charity is experiencing financial or operational distress, or is looking to embark on an ambitious growth or expansion project, we are here to help you navigate the charity to where it wants to be.
Our services are wide-ranging, encompassing risk management, corporate simplification, corporate finance, as well as restructuring and business funding options. We provide tailored advice bespoke to yours or your clients own situation as well as the future ambitions for the charity.
As a multi-disciplinary practice, we use the strength of our diverse offerings to ensure the charity is resilient enough to weather future challenges, while demonstrating the agility and flexibility needed to seize the opportunities of today.
Property agency services are provided by Eddisons, experts in all aspects of valuation, building consultancy, and insurance services for charitable organisations. Charities operating out of retail spaces, charities with property investments, or those which invest in property for the charity sector, can benefit from our comprehensive property management offering. This can help increase long-term property values, while ensuring attractive yields are secured in the short-term.
When increasing financial challenges, the removal of grants and subsidies, coupled with ever-changing regulatory requirements threaten the ongoing viability of a charity, swift action needs to be taken to turn the position around.
The funding of a charitable organisation is unique, with many reliant on long-term donors, government grants, and contract funding. Any delay or shortfall of these funds can be catastrophic and is not as easily remedied as for a commercial entity. This can cause a charity to slip into a place of financial distress, or even insolvency, surprisingly quickly.
While charities can be successfully restructured in these instances, the additional emotional, ethical, and reputational considerations means this is often a much more complex affair than the restructuring of a traditional commercial enterprise. As experts in the restructuring of distress charitable entities, we can draw on years’ of experience and sector-specific knowledge to successfully restructure a viable charity, while ensuring the charity is meeting its purpose and its reputation is protected at all times.
The restructuring of a charity comes in a variety of forms which may include simplifying existing operations, exploring the possibility of merging with another charity, or outsourcing specialist skills when these cannot be suitably achieved in-house. Regardless of the method chosen, our charity specialists will be on hand throughout the entire process, guiding you or your clients through every step of the way.