Big challenges facing smaller charities need forensic input.

In May 2019, I met an old friend for lunch in Birmingham city centre, back in the days when we could all enjoy that luxury.

He’d just taken on an interim role as CEO of small charity and in his usual laconic way, asked if I could help with getting it back on its feet.

It needs structure, process and proper management – both strategically and operationally, he conferred, and with the right people, it can restore its reputation and ability to collect large sums to fund vital projects in some of the poorest parts of the world.

Sounds interesting, I replied, I like to get stuck into organisations that needs re-purposing, especially one that does such good, and he knew I’d done this sort-of-thing before.

So, we agreed to meet up at the charity’s premises the following week. That’s when he gave me the full picture!

The Charity Commission had opened a statutory inquiry as a result of a large amount of money disappearing out of the charity’s bank account. The assumption was that the money had been siphoned off overseas for sinister purposes and the finger of suspicion fell on those who ran the charity.

The Commission gave them twelve months, upon being informed of the appointment of my old friend. Failure to turn it around would result in its immediate closure.

As we started to peel back the layers, what became apparent was a clear lack of structure and process. Risk and governance, for all intents and purposes didn’t exist, there was no audit trail for donation to implementation, the reporting back to donors was patchy and ineffective and most activity was done verbally by the previous board of trustees.

Procurement was also done on the hoof, often to the detriment of the charity and above all, there appeared to be no distinctive measurement or analysis of the charity’s impact.

The Charity Commission then issued a stringent order, forbidding the charity from sending monies overseas, paying any previous employee or trustees, or using the latter for any fundraising activities. Seeing as the nature of the charity and the reason for its existence lay with these individuals, the writing appeared to be on the wall.

So, what did we do?

First, we replaced the board and brought in trustees with experience of not only turning around charities, but with senior strategic and operational heft.

Second, we introduced a detailed risk and governance structure, replete with the necessary processes for fundraising, project implementation and impact assessment, as well as operational actions.

We then relocated the charity away from its locality and ensconced it in separate business premises in the city centre, asserting its independence.

Finally, we launched two detailed ‘deep dives’ into the charity’s historical activities over the past 5 years, one in the UK and one overseas. The aim was to establish where and how donated funds had been allocated and what the impact was; without ignoring the missing funds and the ongoing investigation.

As a new board, the trustees knew that not every avenue could be explored and there would be occasions when, through lack of evidence or opportunity, acknowledgement of a dead end had to be made – funds to undertake these deep dives were extremely scarce as it was. We could only do our best.

Throughout the following 12 months, we worked very closely with the Charity Commission; establishing a clear action plan with their help and keeping them informed every step of the way. Misunderstandings and frustrations did however occur, but both sides remained wedded to the same goal.

At the same time, a Strategy Working Group was formed by myself, drawing on the knowledge and experience of two fellow Trustees and the CEO and a Strategic Framework produced to map out the future plans of the charity.

A new donor database was created, with previous donors assiduously contacted and a definitive fundraising strategy established, aiming at the corporate as well as the individual donor.

In terms of communications, a detailed content schedule was drawn up to make informing donors where their money had gone and its impact more engaging and effective.

As you can imagine, much was going on, often at the same time and the CEO, my old friend, was now working pro-bono and the trustees, including me, taking a very hands-on role.

Fast-forward to May 2021, two long years after that initial conversation. Early one Tuesday morning, the Charity Commission called our CEO and told them that the order was being lifted; we had satisfied their every request and more, we’d put in place a definitive strategic and operational framework. They even offered to help re-launch the charity!

Even then, we still had obstacles to overcome. Our bank pulled out of the charity sector with a week’s notice; our bookkeeper died of Covid, meaning our accounts were late, making it difficult to obtain a new bank account and, despite the Charity Commission lifting the order, a technical glitch prevented them removing it from their website for several weeks; again, making it difficult to press the restart button.

At times over the past 2 years, it felt easier to throw in the towel, but seeing the impact this charity made to the lives of some of the poorest people in the world, we knew we had to see it through and we did.

There’s still much to do. Finalising the Board, re-branding, fully implementing the fundraising plan, reaching out to new donors - are just a few of the tasks ahead. What we do have now is a clear vision, and a framework to realise this vision. Only time will tell if it’s the right one.

What have we learnt in all of this and how does that help other smaller charities?

1.????Get the right people in place, with the right skills, and with the right vision. They need to drive the agenda, formulate strategy, and put in place a dedicated action plan to get things done.

2.????Ensure there is a complete risk and governance framework – for handling donations, project implementation and management, through to systems of reporting, operational management and for any Trustee involvement. It will provide a solid foundation to move forward with confidence.

3.????Develop a Strategic Plan - this cannot be overstated. From the constitution of the Board and their role, the development of sub-committees; project development, fundraising approaches, implementation and impact analysis; branding and communicating with donors and reaching out to the corporates and the CSR programmes; all of this should be corralled within a dedicated framework that is flexible and updateable.

For us, this has provided the Charity with a clear path into the future and went a great deal in impressing the Charity Commission that not only were the Trustees serious people, but they had a clear vision, effective aims and objectives and the right approach to realise them.

4.????Ensure your communications are concise and clear – with all interested stakeholders. We kept the Charity Commission informed on a weekly basis of the actions of the Trustees, and we upped our game with donors, and potential donors, many of whom had started to drift away amidst all the uncertainty.

5.????Brevity is the key to getting things done - keep all meetings, advice and briefs short and focused on decision-making. All Trustees are busy professional people and once the Strategic Plan framework is in place, the framework guides action, or should do. We all knew what needed to be done and when. Too much talking gets in the way!

There’s likely to be more, but the above is what we found to be particularly true.

However, if I could offer once final piece of advice, after the rollercoaster ride of the last 18 months, it would be to ensure everyone buys into the vision. Being on the same page and pulling in the same direction brings clarity of thought and purpose and ensure everyone’s unique skills and experience are utilised to the full.

And never forget the value and impact of your strategies and actions. It could literally be the difference between life and death.

Good luck!

If you’re a charity and would like some initial pro bono advice, then please get in touch – [email protected].