The end of the year and the beginning of another is often seen as a time for reflection. In a time where public scrutiny of charities is intensifying, it is increasingly important for charity boards and trustees to engage in their own process of deep self-reflection.

Assessing their effectiveness and relevance is crucial, particularly in a funding landscape that is becoming more challenging.

A report from NCVO highlighted a worrying trend in the UK charity sector – a significant income reduction for the first time in eight years.

The latest data showed a 14 per cent decrease in public donations and a 15 per cent reduction in investment income, with smaller charities bearing the brunt of this downturn. This situation underscores the need for charities to re-examine their strategies and impact.

Separate Charity Commission’s research points to a clear expectation from the public – charities must deliver on their promises. This is a critical factor in maintaining trust, which is essential for fundraising.

Charities are advised by the Charity Governance Code to be explicit about their aims and to ensure their activities are both effective and sustainable.

This, however, requires board members to face some challenging questions about their current operations and their broader role in society.

Charity boards are encouraged to think critically about the ongoing relevance of their charitable objectives, the necessity of their continued existence, the possibility of other organisations fulfilling their roles more effectively, and opportunities for partnerships or mergers are all crucial.

Additionally, boards need to assess whether they truly understand and meet the needs of their target demographic, and to identify any barriers to reaching those who are not yet benefitting from their services.

Though it may be a challenging process, this level of introspection is essential. It ensures that charities remain focused, impactful, and relevant, adapting to changing societal needs and maintaining the trust and support of the public.

If you would like assistance reviewing your financial position or governance, please speak to our team today.