Financial leadership in small charities
Free finance guide for chairs of small charities
Building financial resilience in this challenging economic environment is critical, and the role of charity leadership – especially the board chair – has never been more vital.
Responding to this need, the Association of Chairs (AoC) launched a free guide to help chairs of small charities facilitate good financial leadership with their trustee boards. Funded by the Chartered Accountants’ Livery Company and authored by Liz Pepler and Uday Thakkar, the guide was shaped by feedback from AoC’s members, CFG and ICAEW.
Addressing the financial expertise gap
Research from NCVO reveals a stark reality: 35% of charities lack financial expertise on their boards. This gap is especially evident in micro, small, and medium-sized charities, where recruiting trustees with financial knowledge often proves difficult.
While this might seem daunting, ICAEW members have been stepping up again in 2024, holding more than 29,000 board roles in the charity and not-for-profit sector. While not all charities have a chartered accountant on their board, they can still strengthen their financial governance with the right tools and strategies, which this new guide provides.
Financial leadership in small charities
To support small charity chairs in fostering financial resilience, the free guide developed by the Association of Chairs is designed to help chairs:
- Reflect on their charity’s current financial governance
- Identify strengths and areas for improvement
- Access free and affordable resources tailored for trustees
While the guide doesn’t cover every aspect of charity finance, it offers a solid foundation to build on. At its core are five reflective questions that serve as a framework for chairs to lead their boards toward robust financial practices:
- How can I support trustees with their financial duties?
- What board arrangements will support our financial governance?
- Do we have a clear financial plan?
- Do we have the financial information that we need?
- Are key finance relationships working well?
An appendix includes a self-assessment tool to help chairs evaluate and track progress.
Leading with confidence
Although all trustees share equal responsibility for financial governance, the chair plays a unique role in creating the conditions for an effective board. A great chair transforms a group of trustees into a cohesive team capable of navigating financial complexities.
Whether you’re a new chair of a small charity or a seasoned leader, Financial Leadership in Small Charities offers invaluable insights and tools to enhance your board’s financial stewardship.
Good financial governance starts with asking the right questions. Download the guide now and equip your board with the knowledge and confidence to succeed.
