Newport 01633 250282
Mon-Fri: 9am to 5.30pm, Sat: 9am to 1pm

What you need to do if your charity is changing

Submitted by Dean on 10 October, 2019 - 11:27 with 0 comment

What you need to do if your charity is changing

Is your charity going through a period of change? Make sure that everything is up-to-date and in order with these essential guidelines…

It can be an incredibly exciting time when things have been going well at your charity and you can start to think about expanding, bringing in more staff or introducing new events and activities. But a crucial part of these growth plans is making sure that you have the right skills, processes and insurance in place to cope with these changes, so that your organisation is fully covered and able to develop in a way that’s both realistic and sustainable.

So if your charity is experiencing a growth period, it’s important to be aware of the wider not-for-profit environment and the future challenges you’re likely to face.

Check the basics
Your ability to change your charity will depend on its structure and governing document. There are four types of charity structure – charitable incorporated organisation (CIO); charitable company; unincorporated association; and trust – which determine factors such as whether or not you can employ staff. Changing your charity’s structure can be complicated, but there are more details on the government’s website. Trustees should also check their governing document – it’s likely that it’ll need amending to reflect the new changes.

Staff and volunteers
To begin with, many charities are run only by the trustees; but over time you’ll probably need to take on additional staff and/or volunteers. During the recruitment process it’s important to communicate your expansion plans and explain to candidates what will be expected of them in their roles, choosing individuals who fit into your wider goals and beliefs.

Partnerships
It can be a good idea to pool together resources and talent from another organisation whose work is relevant to your charity. This collaborative approach can benefit both parties and you’ll be better equipped to deal with the growing demands and responsibilities facing your charity. If a partnership doesn’t sound appealing, consider getting in touch with a larger organisation to see if they’ll mentor you on what to expect and prepare for during the expansion process.

Finance
As your organisation develops, you’ll need to keep a tighter grip on your finances and ensure that every penny is accounted for. Handling budgets, controlling transactions and balancing the books carefully are all key to successful expansion; so if money isn’t your forte, make sure you employ a skilled accountant or financial expert to keep an eye on this side of the business.

Income changes
It’s worth noting that when your charity starts to earn more than £5,000 per year, you’ll have to register it with the Charity Commission. Visit their website for more information on how to do this, as well as the various reporting and accounting methods you may have to conduct, according to your size.

Insurance
No matter what type of charity you operate, there are various not-for-profit insurance products that offer a range of cover options. This ranges from compulsory cover – such as Employers’ Liability and Motor insurance – to additional options such as Public Liability, Material Damage and ‘All Risks’ cover, which covers you for all loss or damage, even that which occurs away from your registered premises. As your activities widen and the organisation becomes more complex, it’s crucial to research or revisit your insurance options to make sure that you’re covered for any eventualities.

For more information, get in touch with Watkin Davies and our team will gladly advise you on all your Charity Insurance needs.

LEAVE A REPLY

About Us

Watkin Davies Insurance Consultants are one of Wales’ largest Independent Insurance Brokers, established in 1978 by Roger Watkins. Since this time we have become one of the leading Commercial and Personal Insurance Brokers in the region and the trusted insurance advisor to hundreds of Welsh and UK businesses and individuals.

Head Office

15 & 19 Penlline Road
Cardiff, CF14 2AA
029 2062 6226
Opening Hours
Mon-Fri: 9am to 5.30pm
Sat: 9am to 1pm
Sun: Closed

Official Insurance Partner of the FAW Trust

Official Insurance Partner of the WSA

Member of British Insurance Brokers Association