Essential Charity Finance for Trustees Guide
Posted On December 1, 2017 By mhauk
During Trustees Week 2017 a report from our member firm, MHA MacIntyre Hudson and Charity Finance Group based on a survey of over 120 trustees, has raised concerns about complacency on financial governance within charities. 57% of respondents said that they understood strategic financial governance matters well or very well, with only 12% saying that they had a poor or inadequate understanding. This is very positive and indicates that boards are taking financial matters seriously.
Yet 84% of respondents said that it would be beneficial for their charity to have a better understanding of strategic financial governance matters. This could be linked to the fact that only 16% of respondents always assessed board competency for charity finance skills, with 28% assessing skills sometimes and 30% occasionally. This was compounded by the fact that 47% of respondents never or only occasionally assessed the effectiveness of their financial governance.
Other concerns highlighted included the fact that only 22% of charities indicated that they always made charity finance training available for trustees that needed it, and less than one in five respondents considered that they had the complete skills and knowledge required to fulfil their responsibilities.
The findings of the survey are consistent with a research study on trustee awareness and effectiveness released this month by the Charity Commission entitled Taken on Trust.
To support charities, MHA MacIntyre Hudson and Charity Finance Group have launched a new free guide on Essential Charity Finance for Trustees. The survey and trustee guide are both available free here.
If you have any questions or would like to discuss your charity’s finances with us in more detail, please contact Hannah Farmborough or call on 0207 429 4147 to be put in contact with a member of our Not for Profit team.
This article originally appeared on the blog of our member firm, MHA MacIntyre Hudson.