Building resilience in uncertain times: Five strategic priorities for charities

The UK charity sector is at a critical juncture. Several hard, back-to-back financial hits have taken their toll, including the long-term repercussions of the pandemic on funding, the cost of living crisis, and the increase in National Insurance contributions (NIC). These pressures have occurred amid a massive and seemingly relentless surge in demand for services, making it difficult for charities to deliver the quality and breadth of services they would like to provide, combat diminishing team morale and burnout, and ensure their long-term viability.

While the challenges are significant, they aren’t insurmountable — especially for a sector that has always been defined by its creativity and problem-solving capabilities. But finding your way through this landscape will involve focusing on a few strategic priorities. The following areas are going to be crucial: 

1. Embrace collaboration and shared learning

‍Working in isolation is no longer an option. Instead, it’s time to actively seek out peers who are working in your field so that you can create structured opportunities to learn from one another, whether you’re exploring innovative fundraising models, ways to improve operational efficiencies, or alternative service delivery methods. Partnerships that fuel knowledge exchange can help plug your critical capability gaps. ‍

2. Nurture supportive working environments

The financial status quo is arguably having the greatest impact on charity employees. Organisations are being forced to cancel recruitment drives and make redundancies, which means existing staff are having to shoulder ever-expanding workloads. Losing people to frustration and burnout is only going to make it harder to deliver your services. Which is why it’s so important, despite the current constraints and pressures, that you’re taking the time to invest in the well-being of your staff. Create sustainable working patterns, listen to grievances, monitor workloads, and do everything you can to prevent your teams from being overworked.

3. Explore diverse funding streams

‍The NIC increase has created a financial deficit that many charities are struggling to fill. While trusts and foundations are still an important funding source, some are pausing new grants or winding down operations, while others are opting only to actively support organisations aligned with their specific missions. All of this is making it harder for charities to rely on a single source of funding, and diversifying your funding streams has therefore become more important than ever.

4. Establish robust impact measurement:

The Statement of Recommended Practice (SORP) consultation has reinforced what many in the sector already know: demonstrating measurable outcomes isn’t optional anymore, especially for medium and large charities. Funders increasingly expect clear evidence of the impact you’re making, and as a result are making reporting requirements more and more stringent. Having these measures in place is sure to give you a crucial advantage when you’re competing for limited funding as it establishes your credibility immediately. Effective impact measurement also helps you understand what’s working and what’s not, helping you make informed strategic decisions and improve the way you work.

5. Strengthen your financial resilience through strategic banking

‍Finally, charities regularly face challenges opening bank accounts, navigating account reviews, and managing international transactions. Recent bank system upgrades have disrupted services at critical moments, leaving some organisations struggling to pay staff and beneficiaries on time. In this environment, it’s important that you’re able to manage your finances adequately and maintain adequate liquidity through short-term deposits and cash reserves.

One way to do this is to work with platforms like Insignis. We understand the sector’s unique needs, and offer targeted solutions and considered expertise that can help ensure funds flow smoothly when they’re needed most. With a single application, Insignis offers access to a wide selection of competitive savings accounts from banks and building societies that share your interests and priorities.

Charities are a vital source of support for their beneficiaries and recipients, providing critical services that no one — not even the government — is currently able to offer. The challenges the sector has seen of late are serious, but it’s possible to overcome them by collaborating, caring for your teams, diversifying your funding, measuring your impact, and strengthening your financial processes. Follow these steps and you’re likely to emerge from this turbulent period more resilient than ever.

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