The Charity Commission is teaming up with the Institute of Chartered Accountants in England and Wales to conduct a project assessing strategy in the sector.

Calling for volunteer charities to take part, the organisations advise the project will look at strategy development and review in 25 charities, each of which will receive a pro-bono strategy review from an ICAEW member. All charities registered with the regulator and with incomes of less than £5m are eligible to take part.

The project will examine how trustees develop, implement and review their organisation’s strategy. Reviewers will carry out in-office research, such as analysing business plans, and will also conduct interviews with board members.

After collating findings a report will be produced by ICAEW for the Charity Commission, with participants remaining anonymous.

Last year the two organisations collaborated on a similar project, also with 25 charities with income of less than £5m, which that time focused on governance. They also worked together in 2011 to study financial controls and fraud awareness in charities.

This new project is part of the Commission’s wider Review Programme, designed to improve its understanding of the risks and challenges charities face.

Project will inform Commission’s future approach

The Commission is hoping the project will provide a snapshot of charities’ attitude to strategy, and that it can then use the information to inform its regulatory approach and identify gaps in support. 

“Good strategic planning helps trustees make sure their charity is fulfilling its objects as effectively as possible,” said Sam Younger, chief executive of the Charity Commission.

“Our case work shows that poor strategic planning can put charities at risk of serious regulatory problems. This project will give us insight into trustees’ understanding of strategy. I am confident that this will help us, and the charity sector itself, provide appropriate support and advice and improve charities’ performance.”

Nick Brooks, chair of ICAEW’s Charity and Voluntary Sector Group, said that this project links very closely with the bodies' previous collaboration:

“[The earlier project] highlighted a lack of process in many charities over strategy planning,” said Brooks. “I would expect the new review to identify more clearly where the sector is at in this very important area.”

Charities and ICAEW members interested in volunteering for the project can visit the ICAEW website (where further information is due to be posted later today).

Separately, the ICAEW and the Chartered Accountants' Benevolent Association have launched a free service to connect accountants who want to volunteer with charities that need help from financial experts.

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