See the big picture
While there are still challenges from the impact of inflation and the recent budget, greater UK political certainty following the election should mean a more promising year for charities. If charities stay focused on their core objectives, it looks like there is now an opportunity to make some of the internal investment needed to deliver better services for their beneficiaries.
Head of Charities, Barclays Corporate Banking
Amid forecasts that increased employers’ national insurance contributions will cost the sector up to £1.4 billion a year, there are concerns among some charities that extra staffing costs will impact their ability to meet demand for their services. With a rise in the national minimum wage as well, many organisations that want to do more, or even simply maintain the level of good work they already do, will need to consider how to increase productivity, perhaps through investment in technology.
I know of some great examples of charities that are already using technologies like artificial intelligence to really help them work smarter in delivering their objectives. Of course, no one would say there aren’t challenges in making this change. Staff will need training and it’s vital beneficiaries don’t lose out – some beneficiaries, for example, don't always engage well with new technologies – but from what I’ve seen and heard, there are real gains to be had and I’d like to see more charities embrace technology and the opportunities it presents.
Focusing on the core mission
The economy remains in a challenging situation and average household income will still be constrained following the period of high inflation which may impact individual giving. Against that backdrop, and the possible impact of wider global geopolitical uncertainties on the sector, many charities will continue to be squeezed financially, but by focusing relentlessly on their core purpose and avoiding ‘mission creep’, they are more likely to remain financially resilient – and deliver the right services to beneficiaries.
I think charity leaders who can be honest and clear about what’s core to their mission and what the organisation does well – and maybe doesn’t do quite so well – should be better able to identify when it might be necessary to scale back on some activities, or better still collaborate with another organisation that is better placed to deliver. Charities have shown they can successfully collaborate, putting aside competition with each other, to ensure better use of limited resources and achieve shared goals, but I still think there’s a lot more that can be done on this.
Some charities are involved in activities that branch off in many different directions and that can cloud understanding of an organisation's purpose. Most successful charities are very focused on their core mission and make it very clear what it is they do and why.
Head of Charities, Barclays Corporate Banking
Seizing the opportunity
Charities provide many much-needed services on behalf of the NHS and local authorities, so the Labour government’s commitment to spend £22.6 billion on health and social care, along with recent reform announcements, could represent a considerable opportunity for some of our clients in the sector. While this potential source of funding is encouraging news, charities should carefully consider the contracts they’re bidding for and ensure they’re genuinely furthering their charitable objectives, rather than simply winning a contract at all costs.
I would also urge charity leaders involved in any contract bidding process to be very clear about the commercial viability of the contract, the time horizon and how the requirements could change. Finally, consider whether the time and effort being put into tendering for a contract is diverting too much of the organisation’s resources and that you’re not neglecting other possible sources of income. Over the years working in the sector, I seen too many cases where charities have agreed to contracts which don't necessarily serve them well and therefore a degree of caution is required before you dive in.
Don’t invest in technology and then stop – it should be an ongoing process of investing, learning, improving and adopting technological processes to better deliver your charitable goals.
To make the best use of limited resources, put your mission first and be prepared to scale back your activities and collaborate with another charity to deliver them.
Being too cautious may not benefit the people you serve – be brave, be bold in seizing opportunities, investing in your people, and investing in the right technology.
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Keeping fraud front of mind
Fraudsters are as active as ever across the charities sector, impersonating our colleagues and attempting to defraud our clients. To help protect you and your business we have a wealth of resources available. You can view our quarterly fraud webinars and take a look at our other educational resources on our Fraud Protection Hub.
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