Charity leaders are still focusing much of their attention on financial sustainability, according to new research.
In response to a recent survey of 72 sector leaders, 40 said financial sustainability was the area most under pressure, with impact and organisational culture also raised by a minority.
Respondents said that financial sustainability was attracting most of their leadership attention, scoring 4.58 out of five on average while impact was rated as 4.04 and culture scored 3.7 in the research commissioned by charity Services For Education.
However, Sharon Bell, chief executive of the charity, said that organisations’ impact and culture were directly impacted by the financial challenges they faced.
The report says that financial pressures have led to charities restructuring, changes to pension arrangements, delayed pay decisions, reduced delivery, new fundraising approaches, or a re-examination of business models.
“What struck me most from the research is that financial sustainability, impact and culture are not competing priorities. They are interconnected,” said Bell.
“Financial sustainability enables organisations to deliver their mission; culture enables people to adapt and respond; and impact is ultimately why the organisation exists.
“The danger is that culture can become the hidden casualty of financial pressure. It may not appear to be the biggest problem on ‘the dashboard’, but if people are exhausted, morale is falling and organisational confidence is being eroded, the consequences will eventually affect impact.”
