For many charities, being able to help beneficiaries relies on factors that unwittingly open them up to increased risks to their viability: relying both on the time and skills of volunteers to deliver services and oversee governance, and depending on public and institutional trust for funding. Also, in common with commercial businesses, charities need to comply with potentially challenging governance demands while operating with tighter budgets.
But should things go wrong, neither their operational constraints nor charitable status tend to afford those running charities automatic defence or mitigation against criticism, adverse publicity and, importantly, organisational or even personal liability.
The charity sector is seeing funding streams hit, with research indicating charities' income could fall by £2.2bn by end of 2023/24. Meanwhile, some charities have been rocked by damaging failures that have impacted their ongoing ability to offer services to their beneficiaries.
In this insight, we examine the current major charity risk areas and offer guidance on navigating them to support the long-term viability and success of your charitable organisation.
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Time and again we hear of situations where a delay in the response to allegations has led to the escalation of claims and reputational harm.
Neither the Charity Commission nor the Health and Safety Executive are likely to accept staffing challenges as excusing a lack of Disclosure and Barring Services (DBS) checks, or why staff were unaware of the correct safeguarding processes. Robust processes and controls around onboarding and maintaining checks will help your charity navigate safeguarding risks.
For smarter ways to manage charity sector risk with advice and support across both insurable and non-insurable risk, education, training and awareness for trustees and boards, get in touch.
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Prevention is better than cure.
