Bates Wells, a charity and non-profit legal firm, has created a decision tool to support charities facing financial difficulty due to Covid-19.
The free guide can be used by charities and social enterprises to help them through next steps on insolvency, merger, collaboration, cost cutting, and raising finance.
The tool provides tailored guidance on what options are available. The user must answer up to six questions to receive a report on the options.
The tool has been developed by the charity and social enterprise team at Bates Wells in response to the challenges faced by the sector as a result of Covid-19.
Philip Kirkpatrick, head of charity and social enterprise at Bates Wells, said: “Charities and social enterprises are facing a reduction in income just when they are needed most. We have seen a dramatic increase in the number of calls to our sector helpline.
“Many organisations will have to make difficult decisions in the coming months and we have developed this tool to guide them. We hope it’s a resource that many find helpful in these challenging times.”
Research finds that UK charities face a £10.1bn funding gap over the next six months, with one in 10 organisations facing bankruptcy within the next six months. As a result of this, the number of organisations facing difficult financial and legal decisions is expected to rise.
The tool was developed after consultation with NCVO on the sector’s needs and is available on the Bates Wells website and on NCVO’s website.
Josie Hinton, capacity-building programmes manager at NCVO, said: “The launch of this free tool is timely. We know that the coming months are going to be extremely challenging for voluntary organisations. Many organisations will need to consider all options, from cost cutting, collaboration to merger, to ensure the continuation of their services. This practical tool offers a step by step approach to help them consider their options.”