An Olympic Task?
The 2024 Summer Olympics, officially the Games of the XXXIII Olympiad and probably more easily referred to as "Paris 2024", is scheduled to start on Friday 26?July [1].
Paris is the main host city with 16 other cities spread across France and even one subsite in Tahiti (French Polynesia). But what does that have to do with charities? This article considers how success is measured in various walks [2] of life.
Measuring the success of an athlete is easy, or is it?
At first, measuring the success of an athlete might seem easy. The winner is the one with the gold medal. A bit like (spoiler alert) Eric Liddell in the 1924 Olympics, also in Paris, as depicted in Chariots of Fire [3].
But, if you are the best in the world and you win gold in Paris, will the Olympic games be more of a success for you than, say, another athlete who is tenth best in the world yet achieves a bronze medal? This latter scenario is similar to what is sometimes measured in education and is known as “value-added”, which is the difference between the expected grade from a student’s baseline assessment score at the beginning of their course and the grade they actually achieved.
An actual example of what might be considered ‘success’ is that of Derek Redmond, a British athlete who competed in Barcelona at the 1992 Olympic Games. Redmond was in good form by the time of the Olympics, posting the fastest time of the first round, and went on to win his quarter-final.
In the semi-final, Redmond started well, but about 250 metres from the finish, his hamstring tore. He came to a halt, falling to the track in pain. Stretcher bearers approached him, but Redmond decided he wanted to finish the race. He began to hobble along the track. He was soon joined by his father, Jim Redmond, who had barged past security to get to the track. Father and son completed the race together, with Derek leaning on his father's shoulder for support. As they crossed the finish line, 65,000 spectators rose for a standing ovation. However, Derek was officially disqualified from the race due to the assistance provided by his father. Although Olympic records state that he "Did Not Finish" the race, it was a success for compassion and humanity [4].
What makes a successful charity
In a corporate entity the measurement of success is relatively easy to define – it’s profit (although increasingly ‘successful’ corporates are now being measured on ESG impact).
Charities have a very different requirement: developing the charitable objects and measuring progress. Neither developing the mission nor tracking progress is easy to do.
Corporate entities have their Profit and Loss Accounts and charities have their version - the Statement of Financial Activities. But ultimately, these statements are only measuring income and expenditure, which is why the Charities SORP has addressed the shortcomings of measuring "just the numbers" by requiring charities to include extensive narrative disclosures in the Trustees' Report.
By now, you might be thinking "what makes a successful article?". For me, it should include a little humour and perhaps some nostalgia. This reminded me of London 2012 - check out one of my favourite moments here.
Charity impact reporting
Back to charities. ICAS - The Professional Body of CAs has recently undertaken research in the charity sector to address the struggle faced by charities with the measurement and reporting of impact [5]. The research noted that:
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The quality of financial reporting is essential in the charity sector, where the support of both funders and donors is dependent on the clear communication of impact.
The first phase of the ICAS project analysed how UK charities develop and use impact reporting. The objective of the report was to understand the motives, processes, barriers and benefits of developing impact reporting, and ultimately assess whether it communicates charities’ achievements appropriately. The main findings from the first phase of the research were based on the following themes:
Like Jim Redmond, help is at hand
To provide tangible assistance to the charity sector, ICAS has compiled examples of best impact reporting practice and these formed the second phase of the research [6].
If you are struggling with impact measurement, or want to enhance your current reporting, then I highly recommend using the ICAS resources (free to download!).
Enjoyed this article? Then check out more insights at Charities | RSM UK
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[2] As I’ve now mentioned walking, it might be of interest that a new race-walking format will make its debut at Paris 2024: the mixed team relay marathon. Twenty-five teams will participate in the race, each made up of one male and one female athlete, who will complete the marathon distance (26.2 miles) in four stages, alternating in the race (man, woman, man, woman). The event will take place on the same course as the individual races, at the foot of the Eiffel Tower.
#charities #olympics #paris2024
Head of Charities and Reporting at ICAS
4 个月Nick, many thanks for a very entertaining and inspiring article, and for referencing the ICAS - The Professional Body of CAs funded research on impact reporting by charities. We hope our best practice examples can support charities in developing their own impact measures. The examples show that impact measures don't have to be complicated to be effective.
Accounting and Financial Reporting Advisor
5 个月Really helpful - thanks Nick Sladden! That set of examples is a really useful resource. Charity reporting is evolving to focus on reporting their impact more however so many Trustee Reports still focus on ensuring compliance without standing back to assess whether the Report is telling the real story of the charity and the amazing things that they have achieved. It can really be a missed opportunity. Compliance is important but the scaffolding of the SORP does allow for really meaningful reporting.
Thanks for sharing, Nick!