We’ve all seen the reports of people driven to the financial brink over the last few years. As austerity has bitten deeper than many anticipated, hard working people have been forced to go to food banks and other charities to survive. And while this increase in demand has stretched charities they have also experienced a fall in revenues. According to chartered accountants in London, where some of the worst effects of austerity have been seen, it all adds up to a toxic mix.
There have been two major reasons for the fall in revenues:
- Government and councils have had to reduce their funding to deal with their own budgets.
- Donations have fallen, as people are now counting every penny and many feel that they don’t have the cash to spare. Those that do give are giving less than previously too.
Responding to this building problem chartered accountants in London and across the country who specialise in the charities sector are working on ways to help their current and potential clients budget more efficiently, make savings where needed and boost income. These are some of the ways that they will help charities in the age of austerity.
- Identify The USP. When it comes to raising funds the main problem many charities face is that potential donors are often snow blind from the sheer number of organisations out there. Chartered accountants in London and around the UK all advise that charities must identify and promote what makes them unique and important in this competitive market, if they want people to part with their cash.
- Analyse Operating Costs. Even if you’ve got enough donations coming in, excessive running costs can cause real problems. A careful analysis of current operations will reveal if there are ways to minimise expenditure, such as new working methods, the inclusion of technology and so on.
- Considering Collaboration. We’re in a new age of collaboration, where likeminded individuals, groups and even corporations are working together to make the most of a tougher environment. Looking at merging or collaborating with other charities is something chartered accountants in London believe can really help, having seen its success in other sectors.
- Securing Funding. Although government funding for charities has been put under pressure it is still there, and good chartered accountants in London and other major cities are well-versed in helping clients secure grants. The process is complex but with the assistance of a good accountancy firm it can be made a lot simpler.
It’s still possible for charities to thrive in these straitened times it just takes a different way of approaching things. Sometimes it requires an outside agent to provide the objectivity needed to make the changes necessary, which is why seeking advice from a quality firm of chartered accountants in London or other major financial hub in the UK can help. Austerity doesn’t have to mean an end to charity.
HW Fisher’s expert team of chartered accountants in London have extensive experience working with charities. Contact them today to see how they can help your organisation.