How Charities can stay Financially Afloat this Year, March 2023

National newscaster Charity Digital look at how charity finance professionals can plan for 2023, including recommendations on reporting, training, and budgeting.

Finances are possibly the biggest concern for charity leaders, even during times when their organisation is successful. Thankfully, there are ways that a charity can boost its financial resilience.

Financial planning is an important part of a charity, as it makes sure their operations continue to run smoothly and be successful, not just for the charity itself but also for the people they support.

By thinking about options to protect and grow a charity’s income, whether it’s short-term or in the long-term, that charity can create financial resilience for their organisation.

As a result, they would be in a better position to continue meeting the demands or requirements of the people they support through providing their much-needed products or services.

There are many benefits in charities doing and showing proper management of their finances:

• Better understanding of the money coming in and going out
• Better transparency and clarity for those looking to fund and donate to a charity
• Greater ability to bid for AND secure future funding, and
• An improved ability for a charity to plan for and relieve or remove any strategic or operations risks

Expanding or varying a charity’s source of income; knowing when to use their reserve monies; even having a look at what a charity invests in can all make a difference in that charity’s financial health.

As local, national, and even international communities face economic pressures this coming year, this would be seen to be a difficult time for many organisations.

Charities could also face the impact of this more than ever, where many organisations have been (and will be) relied upon to deliver important services for their communities.

Because of the financial uncertainty from the cost-of-living crisis, the challenges of fundraising could continue, amid rising energy bills and prices adding pressure for them to keep their services running.

So, as a widely forecast recession moves closer and closer, what are those concerns and issues that a charity should consider the most to make sure they can continue?

National newscaster Charity Digital have released an article looking at how charity finance professionals can plan for 2023.

From recommendations on reporting, to training and budgeting, they offer ideas on how a charity can develop their financial resilience.

To read the article, visit the Charity Digital website.