Share

Risk guide launched for charities going through structural changes

Risk guide launched for charities going through structural changes
News

Risk guide launched for charities going through structural changes

Finance | Jonathan Last | 23 May 2012

Charity insurance specialist Ecclesiastical has published a risk guide for charities which are undertaking structural changes or changing business models, such as those collaborating or merging.

Launched at last week’s annual CFG conference, When charity business models change, your exposure to risk does too – make sure you adapt cites NCVO research into how many charities have been affected by the economic downturn (38 per cent in September 2008 up to 59 per cent in February 2010) in direct proportion to a reduction in the government’s spending in the sector.

But Ecclesiastical further states that fewer charities are saying they will have to cease operating than did in 2010, and that organisations are instead “embracing new opportunities”. The guide is designed to aid such charities through the potential perils of their new strategies.

As well as statistics and advice, the guide provides case studies of organisations that have merged or collaborated, as well as advice on becoming a social enterprise or community interest company (CIC) and a look at the changing landscape of public service delivery that has been brought on by a more contract-orientated funding landscape in the sector.

Things to consider

The guide highlights the key things to consider in a collaborative measure so that charities can reap the benefits of such an arrangement and minimise the commercial risks.

Ecclesiastical recommends that charities look to draw up legal arrangements or contracts early on, with trustees fully aware of their duty of care responsibilities. Common risks include a lack of clarity on who exactly is insured and under what terms of cover; failing to keep adequate records; and a lack of clarity on whether liability is shared or individual.

Significant insurance implications

Of the guide, Martyn Turner, charity and community underwriting manager at Ecclesiastical, said: “There is already useful guidance available for charities from the Charity Commission, CFG, NCVO and KnowHow NonProfit. Yet little, if anything, currently exists that explores the insurance implications – which can be significant.

“This report examines the changing shape of the charity business model and highlights some of the practical ways that charities and not-for-profit organisations can successfully adapt and minimise their risks.”

The guide is available in its entirety on the Ecclesiastical website here.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Oxfam GB appoints new director to grow major donor fundraising

22 May 2015

Oxfam GB has appointed a new director in a bid to grow income from what it called “high value” partnerships....

DEC appeal raises £65m in under a month for Nepal quake

22 May 2015

The Disasters Emergency Committee’s Nepal Earthquake Appeal has raised £65m since it opened for donations...

Olive Cooke investigation ‘likely to lead to tighter rules on direct mail and telephone fundraising’

21 May 2015

The Fundraising Standards Board will investigate how charities share lists of donors and whether opt-out...

Think carefully before changing your name, says free guide to rebranding

22 May 2015

Charities considering changing their name must first find out exactly what their staff, beneficiaries...

Homeless shelter investigated over ‘significant private benefit’ payments

22 May 2015

The Charity Commission has opened a statutory inquiry into a Bristol-based shelter after concerns were...

Clic Sargent chief executive to retire at the end of the year

21 May 2015

Clic Sargent chief executive Lorraine Clifton, has announced that she will retire at the end of the year...

Marie Curie grows visitor time and donor numbers online by a quarter after digital relaunch

22 May 2015

Marie Curie set out to improve its use of digital after realising that it was “limiting its future”...

Amnesty trials virtual reality headsets for street fundraisers

21 May 2015

Amnesty International UK has given street fundraisers virtual reality headsets so they can show the public...

Review programme launched to help charity sector embrace digital technology

20 May 2015

A review programme has been launched by think tank NPC to assess how to improve access to digital technology...

Join the discussion

 Twitter button

@CSFinance