Navigating the Charity Sector with Astrid Davies??

Astrid, a Charity Consultant and Governance Expert offers Community First her time as a trainer, recently, we discussed some of the top risks and opportunities facing charities and their trustees. ?

Community First: Astrid, thank you for joining me today. Let’s start by discussing the risks and benefits of operating an unincorporated charity. What should organizations be aware of?

Astrid Davies: It’s a pleasure to be here, Morya. Unincorporated charities face significant risks, including personal liability for trustees, financial vulnerabilities, and potential legal issues. A situation I often see is charities that failed to meet the terms of a grant. This leads to significant risks, both of financial losses and reputational damage. Incorporating can offer protection for trustees and members, but it's important to understand the flexibility that comes with it. Incorporation doesn’t dictate a particular governance model; you can still operate as a charity or even a Community Interest Company (CIC), which has its own regulator.??

Community First: That’s an important distinction. Incorporation seems to mitigate many risks, but are there specific downsides for smaller charities?

Astrid: Smaller charities may hesitate due to the perceived complexity of incorporation, but the benefits far outweigh the risks. It creates a safety net that protects trustees from personal liability. For small charities, merging with larger ones can also be a strategic move, bringing stability in governance and funding.

Community First: You’ve also touched on the importance of training for charity trustees. How critical is this for compliance and governance?

Astrid: Absolutely critical. Trustees must understand their roles in accordance with the Charities Act and the Governance Code. Compliance is a significant responsibility, and staying updated with resources is essential. Without regular training, trustees may face challenges in handling conflicts or dealing with sensitive issues. I always recommend continuous training, especially when new trustees join the board.??

Community First: It seems that platforms like LinkedIn, other social media tools and community organisations could play a key role in disseminating this kind of information to a wider audience.?

Astrid: Yes true, Social media can be a powerful tool for educating trustees and engaging them with governance updates. Finding a trusted source of updates is important in order to manage risks effectively.

Community First: Let’s talk about the essential skills for new managers and trustees in the charity sector. What stands out to you?

Astrid: Confidence in understanding financials is key. Trustees need to be comfortable with numbers and accounting principles. But beyond that, they need to avoid the paternalistic approach of thinking they're the “saviours.” Charities exist to empower communities, not to impose solutions. Active listening is also vital to understand the beneficiaries' needs. Volunteering should be viewed as a professional commitment, not amateur work.??

Community First: I love that perspective. It’s about empowering rather than saving. We’ve discussed the challenges small charities face, especially in funding. How should they approach sustainability?

Astrid: Small charities often struggle with funding, and mergers can be a solution. Merging with a larger charity might offer a more reliable income stream and better governance. It’s crucial for smaller organizations to assess whether starting from scratch is necessary or if joining forces with an existing entity could be more effective. A good example is a charity? which supports underprivileged girls in STEM. Collaborating with larger charities could enhance its impact.

Community First: Now, regarding business planning, what advice would you give to charity leaders?

Astrid: Keep it simple. A business plan should clarify your mission, goals, and values. Values are non-negotiable, especially in governance. The clearer the plan, the easier it is to stay focused and compliant. Business planning for charities should also reflect the unique challenges they face in balancing purpose with operational needs.

Community First: That makes sense. And when it comes to social impact, how should charities demonstrate their value?

Astrid: The concept of generic social outcomes is useful here. It's about showing how the charity positively impacts the community beyond funder requirements. Engaging the community with data collection can be fun—think postcards or questionnaires. Charities should focus on creating positive, measurable outcomes that resonate with their beneficiaries.

You can join one of Astrid's learning labs or short courses here:?

Trustee roles and responsibilities: https://www.cfirst.org.uk/training/training-courses/?query=charity&search=true

Good Governance https://www.cfirst.org.uk/training/training-courses/?query=governance&search=true