Monahans and Mogers

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Monahans and Mogers
Managing Your Charity in Testing Times
Seminar March 2009
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Agenda
Introduction Quentin Elston Keeping to your
objectives Samantha OSullivan How strong are
your finances Linda Boss Managing people in
difficult times Peta Fry Employing paid staff
and volunteers Tim Gofton Fundraising in
Difficult Times Sarah Whitfield Questions Coffee
Networking
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Monahans

• Leading firm of Chartered Accountants
• Five offices across Wiltshire Somerset
• Wide range of services provided
• Strong specialism in charity sector

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Mogers

• Leading firm of Solicitors
• Based in Bath with 155 years of experience
• Strong specialism in charity sector

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Keeping to Your Objectives
by Samantha OSullivan
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Keeping to your objectives

• To be charitable, objectives must fall within
  fixed parameters
• Objectives can be very wide
• anything regarded as charitable by English
  law
• Or much more specific
• to rescue homeless donkeys living in Bath

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Keeping to Your objectives

• Prevailing economic climate may lead to
  mission drift
• New activities may be properly charitable, but
  are they within your objectives?
• If not, ultra vires issues arise
• Charities are different!

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Keeping to Your Objectives

• Want to avoid Trustee liability
• Objects can be altered
• Charity Commission consent required

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Keeping to your objectives

• What about existing funds?
• Limited possibility to use for other purposes
• consent of original donor(s)
• but can you identify them?
• consent of Charity Commission
• have to show reason (NOT just wish)

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Keeping to Your Objectives

• Lessons for fundraising?
• DONT be too specific!

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Lessons

• Know your governing instrument
• Make any necessary changes sooner rather than
  later
• With existing funds, have to show reasons NOT
  just wish to use for other purposes
• Be careful how you fund-raise
• Avoid personal liability!

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How Strong Are Your Finances
by Linda Boss Monahans
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Statement of Financial Activities
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Statement of Financial Activities
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Statement of Financial Activities
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Statement of Financial Activities
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Statement of Financial Activities
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Statement of Financial Activities
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Balance Sheet
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Balance Sheet
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Balance Sheet
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Balance Sheet
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Balance Sheet
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Balance Sheet
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Summary

• Understand the charity Income Expenditure
  Balance Sheet
• Cash Flow is King
• Look at forecasts impact of decrease in income
• Possible outcomes
• - Diversify income streams
• - Maximise unrestricted income
• - Defer unnecessary costs
• - Ensure the appropriate costs are charged to
  restricted funds
• - Stop doing activities which are not
  unsustainable
• - Make redundancies
• - Renegotiate terms with donors
• - Use property assets to generate income
• - Look at gift aid and VAT saving possibilities
• Ultimately should you continue as a stand alone
  charity?
• Dont underestimate the time it takes to make
  hard decisions

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Managing People in Difficult Times
by Peta Fry Monahans
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Managing Staff in Difficult Times

• Plan ahead
• Communicate
• Manage staffing issues
• Understand what you can and cant do take
• advice
• Review

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Communication

• Build trust
• Listen
• Give good news as well as bad
• Easy to understand, concise, delivered
• effectively
• Timely how often and when
• Train managers to handle communication
• Review regularly and ask staff how it
• can be improved

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Maximise Staff Performance by

• Giving responsibility for the results of their
• work
• Setting clear goals together
• Ensuring suitable resources are available
• Giving constructive feedback
• Providing variety
• Staff involvement

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Managers Toolkit

• Recruit the right people and help them settle
• quickly
• Use policies, procedures and documentation
• Communicate, pool ideas and share concerns
  develop mutual trust
• Treat people fairly
• Ensure good work-life balance
• Value, recognise and reward good performance

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Considering Redundancy

• Understand the organisational requirements
• Know the skills, knowledge and experience
• required
• Consider all the options
• Consider the longer term impact
• Consider the real financial impact of
• redundancies
• Provide support for staff after the
• redundancies

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Managing performance through people means
finding ways to induce or encourage employees to
contribute more effectively by triggering
discretionary behaviour that makes the difference
in a job being done well. This happens when
people find their job satisfying, they feel
motivated and they are committed to their
employer
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Employing Paid Staff and Volunteers
by Tim Gofton Mogers
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Employing Paid Staff and Volunteers

• Volunteer or Employee?
• Changing terms and conditions
• Outsourcing
• Redundancy

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Employing Paid Staff and Volunteers

• Volunteer or Employee?
• Consequences of getting it wrong
• Control
• Mutuality of Obligation
• Reducing risks

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Employing Paid Staff and Volunteers

• Changing Terms Conditions
• Is there a right to vary?
• Express, implied or unilateral variation
• Consultation
• Risks

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Employing Paid Staff and Volunteers

• Outsourcing
• Concentrate on what you do best!
• Reduced Costs? Increased efficiency?
• IT/HR/Finance
• Manage the relationship
• TUPE

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Employing Paid Staff and Volunteers

• Redundancy
• Alternatives?
• Genuine Redundancy?
• Selection
• Consultation
• Dismissal

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Fundraising in Difficult Times
by Sarah Whitfield Dorothy House
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Dorothy House Hospice Care

• Local hospice serving Bath, North and West
  Wiltshire
• and the Mendip part of Somerset.
• 800 patients
• 10 inpatient beds
• 55 day patients per week
• 20,000 hours Hospice at Home service
• Budget 5.4m
• Income 32 NHS
• 12 Shops
• 18 Legacies
• 24 Fundraising
• 4 Investment
• 10 Reserves

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Maximise Income Streams

• Analyse all income streams, decide which to
  target and focus staff effort accordingly
• Be flexible
• Invest in fundraising staff do not disinvest
• Consider specific joint fundraising with one or
  two other charities
• Consider new income streams
• Work hard on public sector funding and be honest
  with commissioning / contract staff

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Build Relationships

• 80/20 rule - 80 income comes from 20 donors
• Keep in contact with past as well as current
  donors
• Keep thanking, however small the donation
• Give feedback
• Tailor messages to different audiences
• Networking use every opportunity
• Be passionate about your charity

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Public Relations

• Keep your charity in the public eye
• Focus on stories about your beneficiaries
• Press like quirky angles with photo
  opportunities
• Keep your website up to date
• Demonstrate cost effectiveness
• Work on all your staff, trustees and volunteers
  to be ambassadors

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Summary

• Analyse all income streams, including new ones,
  and focus staff effort on those which will
  maximise income
• Keep building relationships with donors
• Use all means of communications, including the
  media, to keep your charity and your
  beneficiaries in the public eye
• REMAIN PASSIONATE AND ENERGETIC ABOUT YOUR CHARITY

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ANY QUESTIONS?