A local charity infrastructure body has announced that it will enter administration after facing a period of “significant financial challenges”.
The trustees of Essex-based charity Community360 announced the decision this week, with the formal appointment of administrators due to take place next week.
A Community360 spokesperson told Civil Society: “It’s with enormous sadness that we confirm that the board of trustees has made the extremely difficult decision to place Community360 into administration, following a prolonged period of financial challenges and extensive efforts to explore options for the charity’s future.”
They added: “Despite the considerable efforts of our trustees, staff and supporters, it hasn’t been possible to secure a sustainable financial future for the organisation.”
The charity is assessing the next steps, including whether any services could continue through alternative arrangements. Meanwhile, its accounting service called Community Roots will continue as part of a newly formed company.
A Charity Commission spokesperson told Civil Society that Community360’s trustees had filed a serious incident report about the charity entering administration, which it will assess.
“When closing a charity, the law requires its remaining assets to be used in a way that furthers the charity’s purpose or be passed on to another charity with a similar purpose,” they said.
Loss in grant income
Community360 was established in 1968 to assist charities, voluntary and community organisations in Colchester and Braintree.
Accounts for the year ended 31 March 2025 show that the past 12-18 months have been “exceptionally challenging” for the charity due to financial pressures and a period of organisational restructuring and recovery.
Its total income halved to £2.76m (2023-24: £5.39m), with the charity recording a net deficit of nearly £858,000 compared with a surplus of nearly £306,000 the previous year.
The deficit reflects reduced grant income, which fell from £3.65m to £1.93m year-on-year.
The accounts say: “The year ended 31 March 2025 resulted in a significant reduction in cash and cash equivalents, leaving the charity with limited liquidity to support day-to-day operational needs over the coming year.
“Current cash flow projections indicate that, without intervention, the charity may not hold sufficient unrestricted cash reserves to meet all anticipated outflows as they fall due.”
Scrutiny from regulator and funders
In 2024, the commission opened a compliance case into Community360 following concerns raised about a loan made by the charity to its former chief executive.
During the previous financial year, the charity had loaned over £206,000 to then-CEO Tracy Rudling to expand and improve the premises it rented.
Its accounts show the loan funded a new storage space for its essential living fund programme and an improved driveway, entrance area and car park space for its community transport service.
In March 2025, after assessing information and engaging with trustees, the regulator issued Community360 an action plan before ending its intervention in October that year.
“The action plan expected the loan to be repaid in full, which it was, and led to a refresh of the charity’s board and leadership,” the commission spokesperson told Civil Society.
Community360 said that following the case, the trustees undertook a significant, honest root-and-branch review of governance, risk and decision-making processes.
This was accompanied by “constructive scrutiny from our funders and wider community regarding our due diligence and financial decision-making”, its accounts read.
“This has been a necessary and, at times, uncomfortable journey,” the accounts say. “As a board, we’ve had to reflect, learn, and adapt with humility – acknowledging where improvements were needed and committing to putting them right.”
