Before Covid-19 many charities deliberately kept their reserves down to focus resources on achieving impact and to avoid deterring funders from supporting their work. However, the outbreak has demonstrated how vulnerable charities are to financial crises if their reserve levels are too low and that a re-evaluation of the role of reserves in charity governance is needed.
As we move into the next stage of the crisis, trustees will need to make tough decisions about whether to spend, protect or build up their charity’s reserves. To do this, trustees must balance their duty to ensure their charities are having a meaningful impact against their responsibilities to secure their charity’s financial sustainability, especially at a time when need is growing and new income opportunities are scarce.
This seminar—run in partnership by NPC and the Clothworker’s Company—explores what trustees are and should be doing to ensure their charity’s reserves are being well managed. It is aimed at all trustees regardless of their financial experience, and will cover issues such as:
How charities have used their reserves to manage the impact of Covid-19 so far.
Factors trustees should weigh up to make the right decisions around their charity’s reserves throughout the Covid-19 outbreak such as when to make a trade-off between protecting finance sustainability, fundraising and delivering impact.
How reserves policy best-practice needs to change to ensure charities remain sustainable and agile once the crisis is over.
The seminar will provide attendees with the chance to hear from experts in charity financial management, learn from the experiences of another charity, and network with trustees from other charities.
The session will be chaired by Sarah Broad, Chief Operating Officer at NPC and speakers will include Jill Halford, Head of Charities, BDO and Rohan Hewavisenti Chief Financial Officer, Amnesty International.
NPC has partnered with decision-making consultancy Leapwise on a pro bono project focusing on how boards can equip themselves for a challenging period of decision-making by developing their approaches and capabilities. The project will draw on the collective experience of the sector, the experience of Leapwise and NPC, and evidence from decision-science. We are inviting executive and non-executive members of charity boards to complete this short three minute survey on your experiences with board meetings and decision-making. Your contribution will enhance our understanding of charity governance and how it has been affected by the pandemic.
Book your place on the NPC website.