Most UK charities are sleepwalking into a governance crisis and management challenge to deliver quality services to the public in a long run. Loss of funding, reduced income or income streams, a lack of professional staff and volunteers, and without any risk expertise contribute to such challenges.
In fact, the truth is all charities face risks, but only a small number of charities actually have profound strategies to combat any identified risks before they turn into crises. Indeed, all charities need to start to intervene with preventive risk management and remove obstacles that will affect both the financial and operational side of charity services.
Changes in the economic system would be seen as one of the most common sources that trigger certain risks and crises. Funding pressures on the NHS and cuts in public spending on social care and public health cause charities not keeping pace with rising demand, impacting on the availability and quality of care in general.
“Indeed, all charities need to start to intervene with preventive risk management and remove obstacles that will affect both the financial and operational side of charity services”.
Facing a prolonged slowdown in funding and rising demand on the standards of care, all areas of charities are affected, with volunteers leaving and frontline workforces are under strain. Also, a lack of up to date spending data makes it difficult to monitor the level of financial pressure and key performance indicators for performance benchmark are often being missed.
In response to all these challenges, charities must recognize the strategic importance of having more preventive crisis management in sustaining the overall charity services. Charities need to come up with more creative business plans to attract more staff, to create long-term income streams, and to obtain joined resources by working with other services in the local community.