Charities boards must ask tough questions to improve services

The UK public is placing greater scrutiny on charities to deliver noticeable impacts – and failing to do so could impact on their willingness to donate. In an environment where funding is already drying up, charity boards need to ask themselves some fundamental questions to discover if their organisation is still making a positive difference, according to Campbell Tickell experts.

The UK charity sector’s income shrank for the first time in eight years following the Covid-19 outbreak, according to new research from NCVO. The group’s most recent charity sector overview showed a 14% drop in money from the general public and a 15% fall in investment income led to an overall decrease of 3% in 2020-21 – with smaller charities hit hardest. As the third-sector looks to bounce back from that, other studies suggest some soul-searching will be in order.

Recently, the Charity Commission carried out research into public perceptions of the third-sector, and found that the public expects charities to make the impact that they promise to make. This is a driver of public trust in charities as a whole – and in the non-profit sector, trust is key to securing funding.

To help secure that trust, the Charity Governance Code recommends that all boards should be clear about the charity’s purposes and ensure these are being delivered sustainably and effectively. Doing so can be easier said than done, however – and means charity bosses will need to ask themselves some hard questions, contends Sarah Loader, a consultant with management consultancy Campbell Tickell.

Pointing to one example, Loader noted, “How many of us would put ourselves out of work because we didn’t think we were making the right difference to wider society? Not too many, I suspect. And how many of us would even reflect on the meaning and purpose of what we do in the first place? Well, the board of major UK funder Lankelly Chase has done just this and decided to redistribute all the charity’s assets over the next five years.”

According to Loader, writing in an article for Campbell Tickell’s company website, Lankelly Chase has taken the “bold decision” to close, after becoming “increasingly uncomfortable with the idea of traditional philanthropy” and a so-called “power-over-others approach”. Instead, the organisation will pass on its assets to organisations that directly undertake social justice work across the UK.

Loader continued, “How many other charity boards would so bravely question their own existence? However people feel about the outcome reached, the board of Lankelly Chase has really challenged itself in its strategic role, getting back to the fundamentals of why it is there and what it is for, taking into account changes in society and views.”

In this context, the Campbell Tickell consultant asserted that boards need to take a step back, and “really think about what the charity is there for”, in the way Lankelly Chase did. These include a number of specific questions, which will help determine if the charity as it currently exists is actually the best way to meet those needs.

Loader stated, “Questions charities should ask themselves are: Are our charitable purposes still relevant? Should we still exist? Are there other organisations that might fulfil these purposes more effectively? Should we consider partnership working or merging? Have attitudes and values changed in a way that should impact on how we operate?”

Additionally, charities need to be clear on whether they “really understand the people” they exist to help, their needs and if they are being met. They need to consider if the board actually has the relevant information to continuously ensure this; and to understand what barriers exist in supporting people the charity exists to help, but who do not use its services. Loader contended that all these questions can help boards to focus on the charity’s impact, and help it become more impactful.

She concluded, “At Campbell Tickell we can help boards to probe these fundamental questions, ranging from providing help with strategic planning, facilitating board sessions, or carrying out board effectiveness and governance reviews to assess how well the governance supports boards to ask these questions and really understand impact. It can be uncomfortable and challenging, but going back to the fundamentals really helps to focus on why you are still needed and if you are still making a positive difference.”