Over the coming weeks we’ll be posting up a series of pertinent articles tackling some of the key issues currently affecting the Third Sector. You’ll find the latest of these invaluable features below. To view previous articles simply click on whichever one appeals to you from the list on the right.
November 2009
The report, ‘Board Matters’, does indeed highlight a number of alarming statistics. It states that the largest 20 fundraising charities spend only 0.6 in every pound on governance, with the figure for smaller organisations believed to be even lower.
The report goes on to estimate that nearly half of all charities currently have board level vacancies – and therefore fewer people responsible for upholding standards of governance and accountability than would be ideal. The knock-on effect is a lack of confidence in charities amongst both the public and funding bodies, with the obvious consequence of falling donations and grants.
horses...
It’s a Catch 22 situation: good governance will attract suitable trustees, inspire public confidence, and help a charity to achieve its aims. However, trustees may be loath to commit to the board of a charity that does not already execute effective governance for fear of being held personally liable for failings. It may well prove extremely difficult for a charity with already-stretched resources to establish the necessary controls - so they can’t attract trustees, and so it goes on.
...and carts
One way to break this negative spiral is to appoint the services of an organisation such as Charita. Our team of expert lawyers and accountants will carry out an initial Risk Assessment to identify areas of weakness that should be addressed to persuade responsible trustees that they will not be taking on a role fraught with pitfalls.
It’s also an eye-opener to note from the Board Matters report that an estimated 95% of the general population are unaware that they can support charities by becoming trustees. Not only will Charita advise you on governance issues, our marketing team can help you attract potential trustees through targeted recruitment campaigns, once the right systems are in place. To find out how we can help, why not contact a member of our team now at info@charita.co.uk for an informal chat.