Charity newsletter introduction
The impact of Covid on the world has been enormous, but it has also served to show charities at their best: helping to tackle local and national calls for help and delivering support to those most in need. But there have also been some worrying trends. The Charity Commission has reported that 60% of charities experienced a loss of income, and almost a third suffered a shortage of volunteers*.
A s we move closer to a post- delivering services online and refocusing on their core projects. Looking ahead, over half the charities in the Charity Commission survey said that they anticipated some level of threat to their charity’s financial viability in the next 12 months – however, crucially only 1% said they thought that threat would be crucial to their charity’s survival. Bearing that in mind, it is important that charities make best use of the financial services that exist to help them manage and mitigate the risks they face. Insurance is a key requirement for not for profit and charitable organisations, but the different covers and the levels of protection will vary considerably depending on the size and complexity of their operations. Similarly getting an independent audit may be something that a charity now needs to organise, if they need a bank loan, or apply for a grant from a government body. pandemic world, the need for charities to adapt and innovate has never been greater. Many have moved to a hybrid way of working, And finally, getting to grips with their tax requirements is vital in order to meet their regulatory obligations, and avoid the financial pitfalls that could result in unforeseen fines.
Our latest charity newsletter addresses many of these concerns. Anticipating the return of fundraising events over the summer, our experienced charity insurance team gives a useful overview of the do’s and don’t’s of what you need to put in place to ensure your event is fully protected. Our VAT expert Chris George explains some of the tax issues currently facing the sector, and how talking to a friendly tax person can alleviate your VAT fears. And our new Audit Partner, Adam Smith clarifies the situations when a charity needs to arrange an independent audit, and why it may be useful - even when it’s not a legal obligation. Finally we have a Q&A with Richard Atkinson, Charity Insurance Adviser with experience of arranging insurance for Pride marches (as well as going to them!) who looks at some of the issues when planning a Pride march. We hope you’ll find some useful content in this newsletter and would love to hear from you if you have any comments or suggestions, or if you’d like to know more about any of the subjects we’ve covered. We love dealing with our charity clients, and we appreciate that your priority is to always act in the best interests of those that you serve. We’re here to help you manage your financial operations as simply and cost effectively as possible.
Tim Mulley , Senior Partner
*What new research tells us about the impact of COVID-19 on charities - Charity Commission (blog.gov.uk)
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