The Charity Commission has recently published guidance primarily directed at recognising small charities and the financial difficulties that they are facing.
In addition to pointing to existing guidance, it sets out the issues that charities should consider, and is a checklist which I would urge charities to look through to make sure that they have not missed anything. Recent evidence suggests that more than 2 in 5 charities are drawing on their financial reserves, and they may wish to look at whether it is possible to remove restrictions on funds they hold.
The guidance highlights the need to engage with third parties and the considerations which trustees should look into. I would encourage all charity trustees to read it carefully.
We understand that many trustees are having to cope with serious financial challenges that will have a major effect on their charities and those who depend on them.