Four reasons why now, more than ever, NGOs should be making space around the table for the financial gurus:
- Looking after the family silver
- Managing the day to day
- Keeping the rules
- Guidance for the developing social finance trends
The family silver
Community organisations have traditionally benefitted from citizens’ generosity in many ways; voluntary input, money, property and bequests. Over the years gifts of money and property have contributed to the asset base of some organisations, add to this prudent financial management on which many trusts and associations pride themselves and we have a healthy and fiscally sound non-profit organisation.
With expectations of both increased public disclosure of financial reporting and accessibility of this information via the internet, the financial situation of registered charities is wide open in the public domain. This financial accountability is absolutely right, yet in the current economic environment these hard won assets are sometimes at risk from zealous public health funders. In a cost cutting environment some believe that any savings or reserves should be applied to service delivery. There are also situations where organisations have been asked to justify the monies they have in reserve. Like many agencies, a number of the community organisations took a financial hit in the economic recession, as funds invested in a variety of places failed to perform. This leaves us with questions; how can NGOs maximise and leverage the assets they have and as the financially qualified volunteers often flee in the face of increasing regulation, who is advising them.
