{"id":14742,"date":"2018-11-20T11:19:19","date_gmt":"2018-11-20T11:19:19","guid":{"rendered":"https:\/\/www.policybee.co.uk\/blog\/?p=14742"},"modified":"2023-11-01T14:41:24","modified_gmt":"2023-11-01T14:41:24","slug":"under-the-radar-risk-management-in-small-charities","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/under-the-radar-risk-management-in-small-charities","title":{"rendered":"Are small charities sleepwalking into a governance and risk management crisis?"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><div style=\"display: none;\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"300\" src=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2018\/11\/broken-heart_shutterstock_graphic.png\" alt=\"\" class=\"wp-image-19238\" srcset=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2018\/11\/broken-heart_shutterstock_graphic.png 600w, https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2018\/11\/broken-heart_shutterstock_graphic-300x150.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/div><\/figure>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"849\" src=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2018\/11\/charity-report-front-page.png\" alt=\"\" class=\"wp-image-19236\" style=\"width:300px;height:425px\" srcset=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2018\/11\/charity-report-front-page.png 600w, https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2018\/11\/charity-report-front-page-212x300.png 212w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n<\/div>\n\n\n<p>Thousands of small charities have it pretty tough. A squeeze on the public purse, council cuts and less loose change in people\u2019s pockets has meant a stranglehold on funding and resources for many.<\/p>\n\n\n\n<p>And all at a time when society needs small charities more than ever: to fill the gaps in frontline services and to help bind our increasingly fragmented communities together.<\/p>\n\n\n\n<p>All of which got us thinking. When relied upon to do so much, and often with so little\u2026who do small charities go to for help and advice? What worries them? And how do they manage their governance and compliance obligations?<\/p>\n\n\n\n<p>The thing is, all charities face risks, whether that be funding, trustee issues or falling short of The Charity Commission\u2019s expectations. And big or small, it\u2019s a fact that charities are expected to follow the guidelines and maintain certain standards.<\/p>\n\n\n\n<p>That can be challenging when resources are stretched. So, we decided to call on the experts at The University of Suffolk to help us find out just how well small charities are managing their risk, governance and compliance issues. And what we might be able to do to help.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tricky terrain<\/strong><\/h2>\n\n\n\n<p>The picture we discovered is one of small charities short on time and cash, lacking proper risk management and governance training, and not always clear on where to go for advice.<\/p>\n\n\n\n<p>And that\u2019s a worry when so many people are so reliant on small charities and what they do for their communities. If small charities get their risk management badly wrong, there\u2019s a danger they\u2019ll simply cease to operate.<\/p>\n\n\n\n<p>So, could small charities be sleepwalking into a risk management and governance crisis? Here\u2019s what our survey of 330 small charity founders, directors, CEOs, trustees, employees and volunteers across the UK revealed.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Biggest concerns<\/strong><\/h2>\n\n\n\n<p>It\u2019s no big surprise that money tops the list of worries \u2013 specifically loss of funding (70%) and reduced income and revenue streams (74%). Lack of cash also looms large in other questions we asked: it\u2019s cited as the biggest barrier (57%) to respondents seeking risk and governance training.<\/p>\n\n\n\n<p>People are another source of worry. Two-thirds (66%) say they view recruitment of trustees and volunteers as their next most significant risk &#8211; highlighting the difficulties small charities can have bringing the right people on board. Managing the risks that go hand-in-hand with staff and volunteers are a concern for 44%.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Risk management<\/strong><\/h2>\n\n\n\n<p>Worryingly, one in ten small charities either doesn\u2019t have, or isn\u2019t sure if they have any risk management measures in place. That can leave them very vulnerable should things go wrong.<\/p>\n\n\n\n<p>Also of concern is the fact that even when small charities do have risk management measures in place, the average number is just one. Three was the highest number across all our respondents, suggesting a lack of proper strategy. Respondents blame lack of time (64%), lack of funds (52%) and lack of expertise (39%).<\/p>\n\n\n\n<p>Confidence in risk management is also shaky, with almost half (47%) saying they are only \u2018somewhat confident\u2019 or less so in their organisation\u2019s ability to identify and assess risk. The same applies when it comes to managing those risks: 54% feel only \u2018somewhat\u2019 or less confident that their organisation is well placed to deal with them.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Training<\/strong><\/h2>\n\n\n\n<p>This lack of confidence could be linked to training in risk management and governance being sparse among respondents. Nearly two-thirds (62%) report they have had none at all \u2013 most commonly due to a shortage of funds (57%), being short on time (50%), or not knowing where to access training.<\/p>\n\n\n\n<p>All of which begs the question: when people working for small charities come up against a risk or governance issue and feel ill-prepared to deal with it, where do they go for help? If they lack the proper training and can\u2019t solve a problem for themselves, who advises them?<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Help &amp; advice<\/strong><\/h2>\n\n\n\n<p>Most (55%) say they rely on their board of trustees to supply the expertise, or their peers and colleagues (46%). Of course, that\u2019s all very well if your charity has a board, and the trustees who sit on it are suitably knowledgeable. But what about those who work alone or in isolation? What about the people who have no one to reliably turn to for help and support?<\/p>\n\n\n\n<p>Well, the help is out there. There\u2019s a wealth of information on risk management, governance and other small charity matters on the web. Plus, there\u2019s governing bodies like <a href=\"https:\/\/www.gov.uk\/government\/organisations\/charity-commission\" target=\"_blank\" rel=\"noreferrer noopener\">The Charity Commission<\/a> and the <a href=\"https:\/\/www.fundraisingregulator.org.uk\" target=\"_blank\" rel=\"noreferrer noopener\">Fundraising Regulator<\/a>. And there\u2019s local support networks, such as community foundations and the Council for Voluntary Service (CVSs).<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Ts &amp; Cs<\/strong><\/h2>\n\n\n\n<p>Having the time or confidence to liaise with these organisations or trawl their websites is another matter. And maybe that\u2019s why take up is generally low. Two-thirds (66%) say they\u2019re \u2018not at all\u2019 or \u2018not so\u2019 familiar with some of the sector\u2019s main regulators and umbrella organisations*.<\/p>\n\n\n\n<p>Sixty per cent report they\u2019ve consulted the <a href=\"https:\/\/www.gov.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gov.uk<\/a> website in the last year, a prime source of advice on charities\u2019 rules and regs. But it\u2019s information provided by local voluntary networks and membership organisations that scores the highest satisfaction rate at 59%.<\/p>\n\n\n\n<p>That\u2019s in the face of only 39% saying they actually make use of their local voluntary networks, with 30% stating they \u2018never\u2019 use them. And with small charities citing funding as their biggest worry \u2013 and local community foundations providing a major portal for accessing it \u00ad\u2013 that seems something of a paradox.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Helping hand<\/strong><\/h2>\n\n\n\n<p>It\u2019s clear society badly needs small charities. They fulfil a unique role in helping to glue communities together&nbsp;and successfully plug some of the many gaps left by swingeing cuts to local services. In short, they\u2019re invaluable.<\/p>\n\n\n\n<p>But for small charities to continue doing what they do, they need support. They\u2019re short on funds, resources and time, and they need good advice to help them be the best they can be. They also need help in identifying their risks&nbsp;and making a plan for if those risks turn into problems.<\/p>\n\n\n\n<p>Help is, in fact, ready and waiting. It\u2019s just a matter of knowing how and where to access it easily. To smooth the way, we\u2019ve written an <a href=\"https:\/\/www.policybee.co.uk\/blog\/charity-help-guidance-and-resources\" target=\"_blank\" rel=\"noreferrer noopener\">article<\/a> that  points you to some of the very best online advice on essential topics like fundraising, good governance, GDPR and health and safety.<\/p>\n\n\n\n<p>We\u2019ll be developing, updating and adding to it on a frequent basis, so make sure to check back regularly. It\u2019s our way of saying \u2018thank you\u2019 and doing our own bit to help and support a sector that deserves it.<\/p>\n\n\n\n<p><strong><a aria-label=\"undefined (opens in a new tab)\" href=\"https:\/\/www.policybee.co.uk\/documents\/charities\/charity-survey-report.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download report PDF (2.1 MB)<\/a><\/strong><\/p>\n\n\n\n<p>*The Charity Commission, Gov.uk, The Fundraising Regulator, The Information Commissioner\u2019s Office, National Council for Voluntary Organisations (NCVO), UK Community Foundations, Local networks (community foundation, CVS etc)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thousands of small charities have it pretty tough. A squeeze on the public purse, council cuts and less loose change in people\u2019s pockets has meant a stranglehold on funding and resources for many. And all at a time when society &hellip; <a href=\"https:\/\/www.policybee.co.uk\/blog\/under-the-radar-risk-management-in-small-charities\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[135],"tags":[150,143,9],"class_list":["post-14742","post","type-post","status-publish","format-standard","hentry","category-charity-insurance","tag-managing-risk","tag-rules-and-regulations","tag-terms-and-conditions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Small charities risk management<\/title>\r\n<meta name=\"description\" content=\"Could hard-pressed small charities be sleepwalking into a risk management and governance crisis? 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