This free digital resource from the Organisational Financial Literacy project can help charities to build a financially sustainable future
Over the last few years, many different areas of charity work have been digitised and streamlined, including fundraising, security and service delivery. While high-profile innovations in these areas have been met with widespread enthusiasm, the same attention has not been paid to charity finance management.
Finance management is an often-neglected aspect of charity operations. Yet it can have a clear and demonstrable effect on how a charity is able to sustain service delivery and secure longer-term operations.
A recent Charity Finance Directors’ Group study found that while more than 50% of charities published general reports on output and outcome, broader impact reporting is a far less common practice.
This can have severe knock-on consequences for charities when it comes to securing funding. It also means that these charities are making uninformed and potentially irresponsible decisions.
The Organisational Financial Literacy Project – a collaboration between Charity Digital and Sage Foundation, in consultation with Solid Base Non-Profit Support – has investigated the current levels of finance management, financial reporting, and finance skills and proficiency within the UK charity sector.
As part of the project, Sage Foundation and Charity Digital have published a report examining the root causes of the charity sector’s financial skills gap and proposing solutions.
The findings of this report have been condensed into an infographic, which can be downloaded for free on this page. The infographic outlines the core conclusions of the report, and highlights key statistics that provide information and context on the current state of finance management within the UK charity sector.
Download the infographic to learn more