The charity and not-for-profit sector has long faced financial challenges, in addition to ongoing public scrutiny and enhanced regulatory supervision, resulting in more and more organisations within this sector considering their ongoing viability. These considerations are especially prevalent within the current economic climate caused by COVID-19.
Restructuring Advisory Partner, Phil Reynolds, examines the specific challenges when dealing with the sector, which can make them more complex to successfully restructure over their commercial counterparts, in his recent publication.
Phil unpicks the common issues that cause financial difficulty, such as expiry or withdrawal of grants from local and central government agencies, as well as the impact of the wider economic climate. He explores the relationship struggles between management boards and trustees, which are often intensified due to the strong emotional attachments to the charity, alongside the reputational pressures which can lead to the charity coming off worse, or ultimately failing when attempting to restructure.
Drawing on his sector knowledge and experience, he offers advice on how to successfully navigate these challenging situations for the future benefit of the organisation.
As the effects of government intervention in response to COVID-19 continue to ripple through the economy, we will be continuing to support businesses – providing guidance and sharing our knowledge as more measures are introduced – to help businesses through what, for many, will be a challenging period.
Visit our Corporate Resilience hub for more resources, advice and guidance from our teams.
This article first appeared in Volume 17, issue 2 of International Corporate Rescue and is reprinted with the permission of Chase Cambria Publishing – www.chasecambria.com.
The number of charities registered in the UK