Preparing the Third Sector for the Challenges Ahead
The UK’s charity and not-for-profit sector is facing one of its most challenging times as it battles ever-changing financial, environmental, governance and technological landscapes post-lockdown.
This section is aimed at preparing charities and not for profit businesses for the challenges ahead to help mitigate the risks they face and provide expert advice, guidance and resources for successful charity risk management.
Income is always a key risk for any charity or Not for Profit. Unfortunately, the impact of the pandemic and Brexit has dramatically escalated the issue, removing traditional income sources, causing financial instability and uncertainty across the sector. Many organisations have been forced to rethink the sustainability of their funding and diversify where they can.
The acceleration of technology use has also raised challenges. Data protection is now more important than ever, as is ensuring compliance with current data regulations. As charities increase their reliance on technology, other risks arise too, including cybercrime. Cybercrime is constantly evolving so organisations must have their finger on the pulse to ensure they are prepared.
Reputational risks are key for any charity risk management policy. Unfavourable events, failure to comply with regulation or safeguarding failings can lead to serious reputational damage that can hurt a charity’s long-term prospect and financial security.
Priming Charities and Non-profits for the Future
Although people lie at the heart of any charity’s success, they can also be their undoing. Careful consideration needs to be made about how an organisation manages its people with specific policies in place to deal with everything from fundraising staff to the charity’s leadership team in order to create a culture that is aligned with the organisation’s goals and strategies.
By addressing, understanding and mitigating these risks, the third sector can look forward to a stronger, more secure future in the UK.
