Charities lack continuity plan: most third-sector bodies are unprepared for the words.
Author | Boateng, Esther |
Position | Risk Management |
Fewer than half of the UK's charities have developed strategies to respond to technical, natural or financial disasters, according to a survey by the Charities Finance Directors' Group (CFDG) and accountancy firm PKF.
Almost 60 per cent of small charities--classed as those with annual revenues not exceeding 250,000 [pounds sterling]--and more than 40 per cent of larger charities do not have a business continuity plan in place. And, although more of them are now incorporating risk management into the day-to-day running of the organisation, there are still "significant gaps to be filled", according to Charles Cox, head of the charities group at PKF.
"Charities need to prepare contingency plans for negative media coverage, the loss of a key financial source, a major computer breakdown and incidents such as a fire or flood," Cox said. "These are fundamental concerns that charities, just like businesses, must do more to address."
The type of dangers a charity faces depends on the size, budget and complexity of its activities. But the main risks are loss of income, shortages of staff or skills and ineffective management, according to the research report. Negative media coverage is also extremely damaging, as it's crucial for a charity to maintain a good name. Despite this, only 62 per cent of large charities and a quarter of small charities said they had a media response plan.
"Risk management is an essential activity and charities...
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