should continue to do what they do best: place their charitable purpose at the heart of everything they do, adapt and respond to challenges as they arise, maintain financial resilience, disrupt and innovate, collaborate and partner, challenge and be vocal about their cause. What are some key issues for charity trustees and leaders? Charitable purpose, reputation and public trust remains a key area of focus. This is at the heart of what charities do and this needs to remain at the forefront of their minds. A number of charities have refreshed their strategy, and it’s helpful for us to really understand how they plan to deliver for those they exist to serve over the short, medium and longer-term. And the reputation of charities, overall, has seen a bounce during the pandemic through the impact they have had. Charities have faced different situations with regards to their financial sustainability - some have found it difficult togenerate income with rising demand while others have conversely seen incomes hold steady but an inability to spend on their charitable activities due to the impact of the pandemic, and everything in between. And, looking forward, there will continue to be uncertainties in this area - not least pressures from inflation. For many, there is a squeeze on income while costs are expected to increase. More and more charities are specifically reflecting on their liquidity and reserves policies, and what this should look like for them going forward. People and culture have increasingly been on the radar for charities. The turnover of people in charities is, like for those beyond the charity sector, high - including those who are leaving the labour market altogether - and this results in significant competition for talent. How it feels like to work at a charity is therefore an important element. Key is also the management of volunteers, for which there has been significant interest over the course of the pandemic. Linked to this are discussions around ways of working and use of office space. Some charities fully left their properties during the pandemic and others sub-letting the space they have. There’s a greater focus on how space can be used more effectively, and charities are adopting hybrid working in different ways. There are live discussions over the balance of how often people should come into the office, and this may differ from charity to charity. Many charities looked much more closely at how they use digital and technology during the pandemic, and there are more charities which are actively considering how investments in this area might help their overall charitable aims. There are also more finance teams seeking to understand how systems can enable greater efficiency. What about Environmental, Social and Governance (ESG) matters? ESG is high up on the agenda. This is about how charities do what they do responsibly, with a holistic lens. There is a role for everyone involved with charities to approach this with an open mind, around whether how we do things is the most responsible way that is true to the charitable purpose. The ‘S’ in ESG is what charities inherently do. It’s about their impact and charities can be clearer about this - in their strategy, “Many charities are continuing to look at how they can drive greater innovation, internally within the organisation as well as in collaboration and partnership with others.” Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s 31
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