Thursday, 15 September 2016

Commission case reports examine financial resilience

There's been a really interesting press release from the Charity Commission today, that follows on nicely from our Trusty Trustee event yesterday, and the 15 Key Questions presentation.

The commission has been exploring the financial resilience of the charitable sector and identify wider lessons for charities who may be experiencing financial distress. Case reports have been published on two charities that were indentified as being at risk of financial distress, including potential insolvency.

Michelle Russell, Director of Investigations, Monitoring and Enforcement at the Charity Commission, said:
“The commission’s work looking at charities in financial distress has identified the importance of trustees being aware of their duties and responsibilities as trustees and the need to be proactive. These 2 case reports show the importance of trustees acting quickly and identifying potential options when confronted with financial difficulties. Trustees had to take tough decisions but by addressing these head on and having frank discussions, they were able to make decisions in the best interests of their charities. We hope that charities in similar positions can learn from these reports.
“Trustees should regularly review their charity’s financial health and have robust procedures for managing charity finances. Trustees can use our 15 key questions’ documents as a helpful starting point to consider the health of their charity.”
Our guidance Managing financial difficulties and insolvency in charities (CC12) provides advice for charities that are facing financial difficulties and how they can reduce the risk of insolvency.
The case reports are available on GOV.UK.
(Source: Charity Commission) 

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