The Regulator for Charities in England and Wales
September 2009
The downturn in the economy poses a challenge to charities with more people needing their services but many sources of charity income are in decline. As the regulator of charities in England and Wales, we want to make sure that we are doing all that we can to support charities through the current climate. We have brought together on this page information charities need in order to understand, prepare for and react to the changing financial situation. These pages are regularly updated, so please look out for new information and resources, and news in our ‘news’ section here.
No organisation, whether business or charity, will survive difficult economic times without those in charge seriously looking at their financial health, direction and whether they’re making the best use of resources.
The big board talk initiative is the conversation all charities need to have. It covers key areas where charities tell us they are most vulnerable and asks 15 questions to help trustee boards look at both the options and opportunities available to them. It is intended to be a practical tool in the form of a checklist that can be used by all charities, particularly small to medium sized ones, to help inform their board and planning discussions. If your board carefully works through the areas in these questions that relate to your charity, it will help to demonstrate that your trustees are acting appropriately in the current circumstances.
The economic downturn – 15 questions trustees need to ask
In September 2008, March 2009 and September 2009, we published the most comprehensive surveys conducted of the charitable sector during the economic downturn. Our most recent survey showed that 56% of charities surveyed had been hit by the economic downturn, up from 52% of charities in March 2009.
Charities and the Economic Downturn summarizes of how the downturn is impacting on charities and steps they are taking to respond, drawing on findings from the three surveys and our regular conversations with charities.
The key findings from the September 2009, March 2009, and September 2008 surveys are also available.
We have published a summary of discussions we held with charities at three regional focus groups, looking at the impact the recession is having on their organisations. You can view the summary of discussions or download a PDF version from our website.
The following guidance may be particularly useful to charities in the current climate.
To be effective, trustees should always seek to improve the performance and efficiency of their charity. One way of doing this is to look at and assess innovative and imaginative ways of working. This can include working collaboratively with other charities and in some cases mergers between charities.
In September 2009 we produced resources for charities, including
A full list of our resources to help charities considering mergers and collaboration can be found here.
Information about the Financial Services Compensation Scheme and what it means for charities.
In July 2009, the Charity Commission hosted a discussion which brought together a select group of figures from the charity sector and other regulators. The workshop was designed to examine in more detail the outcome of Lord Turner's review of the autumn 2008 banking crisis and financial regulation. The aim of the session was to explore any implications for the regulation of other non-financial sectors, in particular charities.
Like all good regulators, the Charity Commission needs to constantly review our approach, so the discussion was an invaluable opportunity to hear some external views on our current approach to regulation.
A summary of the discussion can be viewed here.