Watchdog urges charity chiefs to face today’s reality

Head of CBI backs campaign to help charities survive recession

(Immediate Release - 16 June 2009)

Charities are increasingly feeling the impact of the recession - and doing nothing is no longer an option according to the Charity Commission. Today, its Chief Executive, with the support of the CBI, launches an initiative – the Big Board Talk – to get all charities to ask themselves some serious questions.

The Big Board Talk is ‘the conversation all charities need to have’, and the direct result of an extensive four-month programme of outreach and research by the Commission. It covers the key areas where charities tell us they’re most vulnerable and asks 15 key questions to help trustee boards look at both the options and opportunities available to them, right now.

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.

Andrew Hind, the Charity Commission’s Chief Executive, said: “The survival of our charities depends on their having the courage to ask themselves some fundamental questions. All charity boards need to make this a priority. Asking these key questions will help trustee boards review their options, make the hard decisions and enable them to have a clear understanding of the challenges they face and the best ways to tackle them.’

Commenting on the Charity Commission’s initiative, CBI Director-General Richard Lambert, said: “Businesses up and down the country are having to make tough decisions about the measures they need to take to ensure they survive the recession and emerge from it stronger. That means stripping out the nice-to-haves and focussing on core activities. Charities are no different in this sense.

“However, they do face a particular challenge that demand for their services is likely to be at its highest at a time when income is most under pressure. The Big Board Talk provides sound advice that will help trustees take the steps necessary to protect the vital services they offer. I would urge trustees to take part in this worthwhile initiative.”

‘The economic downturn – 15 questions trustees need to ask’ is available from the Commission’s website at www.charitycommission.gov.uk. This week it will be sent in the Commission’s newsletter to each of the 190,000 charities registered in England & Wales.

End.

Additional quotes:

Rob Wilde, General Manager of West Yorkshire Forget Me Not Trust, said:
"The recession has seen take-up of tickets for some of our higher priced events take a hit - we're increasingly going for bigger events with lower ticket prices. Our charity shop income is up, but we're keeping a close eye on the volume of donated goods we're getting. The Big Board Talk is a great tool for the team and trustees alike to apply to all areas of our operation.
“Efficiency and effectiveness are key right now. So, while the workload of our small fundraising team can make us too focused on the 'day job', this checklist helps us review our operations and monitor the bigger picture."

Libby Jones MBE, Chief Executive of New Pathways, said:
“New Pathways has been affected by the recession. Whilst grant-makers and statutory bodies alike are cutting our funding, the numbers of those desperately seeking our help is growing as the recession piles on the pressure for households. It was a huge relief to realize the Commission really wanted to know the challenges we are facing and wanted to provide us with something tangible to help tackle them. While we had already discussed some of the 15 key questions, there were others that hadn’t occurred to us. Providing these 15 key questions will definitely help us make the most of what we’ve got.”

Notes to Editors

1. The Charity Commission is the independent regulator of charities in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218.

2. In September 2008 and February 2009 the Commission published the most comprehensive surveys conducted of the charitable sector during the economic downturn. The key findings of the February survey included the following:

• 52% of charities had been hit by the downturn, 58% of those had experienced a decrease in income;
• 64% of the largest charities were concerned that services or funding might be greatly affected;
• 32% of charities had taken steps to combat the downturn.

3. During May 2009 the Commission held a series of group meetings with charities in Cardiff, Oxford and Leeds to discuss the vulnerabilities and challenges facing them in the current economic climate. In addition, the Commission continues to discuss these issues as part of its ongoing programme of engagement with larger charities. For more information on the support offered by the Commission to charities at this uncertain time, visit our economic downturn page. 

4. There are just under one million trustee positions in charities registered in England and Wales.

5. The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as in Brussels, Washington and Beijing, the CBI coordinates British business representation around the world.

Media Contact: CBI Press Office on 020 7395 8239 or out-of-hours pager on 07623 977854

6. The West Yorkshire Forget Me Not Trust (registered charity number 1110457) aims to care for children who have life-limiting conditions and are unlikely to reach adulthood. Care for siblings and families will also be at the heart of the service it provides. The Trust is currently raising the funds to build a centre for respite, emergency and end-of life care. Community based teams will provide care and support at home, as well as bereavement support. Visit www.forgetmenottrust.co.uk for more information.

Rob Wilde at West Yorkshire Forget Me Not Trust attended the Charity Commission's Leeds event on 13 May 2009.

7. New Pathways (registered charity number 1029186) supports some of the most vulnerable and at-risk members of our society. Its aim is to relieve the mental and physical distress of women, men, children and young people who have suffered rape, sexual abuse or trauma. It also aims to promote education and research into the subject of sexual abuse and the effect that it has on victims. Visit www.newpathways.co.uk for more information.

Libby Jones from New Pathways attended the Charity Commission's event in Cardiff on 6 May 2009.

PR 25/06 

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