The Charity Finance Blog
Expert financial advice for charities and non-profit organisations from Ben Dowdeswell, Third FD founder.
How to Facilitate Agile, Insight-led Decision Making Via Regular Financial Snapshots
For charity CEOs and trustees, making informed, data-driven decisions is a critical part of running a successful organisation. However, financial information can often feel overwhelming or too technical to process effectively. The solution is regular, clear, and concise snapshots of the charity’s financial health, which allow you to act quickly and confidently, without getting bogged down in complexity.
7 Ways to Reduce Operational Risk Through Effective Governance Policies and Frameworks
Operational risk is an inherent part of running any organisation, including charities. These risks can arise from various sources, including inadequate processes, failed systems, human errors, or external events.
For charities, managing these risks is critical not only for their sustainability but also for maintaining public trust. One effective way to mitigate operational risk is by regularly reviewing and enhancing governance policies and frameworks.
How to Create Financial Metrics in Your Reporting to Target Improvements in Key Areas
Financial health is the foundation upon which any charity stands, and monitoring that health through detailed reporting is essential for sustainability and growth. However, financial reporting can often become overwhelming, especially when trying to measure performance across various areas.
To make these financial reports more actionable, incorporating "financial gauges" can help you track and improve key areas of your charity's operations. Financial gauges are indicators that highlight whether your charity is on track toward its financial goals, providing clear signals when adjustments are needed.
How to Keep Ahead of Internal and External Changes with Active Forecasting
In today's rapidly evolving landscape, charities face an array of internal and external changes that can impact their missions and operations. From shifting donor expectations to regulatory adjustments and economic fluctuations, staying ahead of these changes is crucial for long-term sustainability.
One effective strategy is active forecasting, which allows organisations to anticipate changes and adapt proactively. Here’s how your charity can implement active forecasting to navigate the complexities of the nonprofit sector.
7 Ways to Implement Cost-Saving Measures for Operational Efficiency in a Charity
Charities face a unique set of challenges when it comes to managing their resources effectively. Implementing cost-saving measures can help your charity achieve more with fewer resources, allowing you to maximise its impact.
In this article, we will explore 7 practical strategies for charities to implement cost-saving measures while maintaining or even improving operational efficiency.
8 Indispensable Ways to Analyse Risk in Your Charity’s Revenue to Identify Vulnerabilities
As a charity, your primary focus is often on delivering your mission and serving your community. However, financial sustainability is just as critical to ensure you can continue making a positive impact. Identifying risks in your charity’s revenue stream is a crucial step toward maintaining long-term viability and safeguarding your operations. Unforeseen financial vulnerabilities can threaten your programmes, affect staff morale, and hinder growth.
In this article, we’ll explore the key steps for analysing risks in your charity’s revenue and identifying potential vulnerabilities.
How to Create a Strategic Budget that Optimises Resource Allocation
In the dynamic landscape of charities and non-profit organisations, effective resource allocation is crucial for maximising impact and ensuring sustainability. Strategic budgeting serves as a powerful tool for charities to align their financial resources with their mission, enhance operational efficiency, and ultimately, increase their positive influence on the communities they serve.
In this article, we’re going to look at key strategies for optimising resource allocation through strategic budgeting.
How to Improve Your Charity's Cash Flow Management to Strengthen Financial Stability
Financial stability is crucial to achieving long-term sustainability and delivering impactful programmes for charitable organisations. However, many charities face the challenge of fluctuating donations and unpredictable income streams, which can lead to cash shortfalls, financial stress, and an inability to meet the charity’s goals.
In this blog we’ll look at some of the different ways a charity can improve its cash flow through initiatives that include:
Developing Accurate Cash Flow Forecasts
Optimising Grant Management
Maintaining a Cash Reserve
Improving Receivables and Payables Management
11 Essential Ways to Tighten Financial Controls to Reduce Financial Risk
In today’s challenging economic climate, charities face increasing scrutiny over their financial management practices. Ensuring transparency and accountability is not only vital for maintaining donor trust but also for sustaining the organisation’s mission and operational integrity.
In this blog we’ll look at some of the different ways a charity can protect itself from financial risk through actions including:
Segregation of Duties
Regular Reconciliation
Budgetary Control and Monitoring
Use of Technology and Automation
Regular Financial Reporting