finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Concerns Raised About Complacency on Financial Governance in Charities

Posted: 14th December 2017 by Finance Monthly
Share this article

A report from MHA MacIntyre Hudson and Charity Finance Group based on a survey of over 120 trustees has raised concerns about complacency on financial governance within charities.

57% of respondents said that they understood strategic financial governance matters well or very well, with only 12% saying that they had a poor or inadequate understanding. This is very positive and indicates that boards are taking financial matters seriously.

Yet 84% of respondents said that it would be beneficial for their charity to have a better understanding of strategic financial governance matters.

This could be linked to the fact that only 16% of respondents always assessed board competency for charity finance skills, with 28% assessing skills sometimes and 30% occasionally. This was compounded by the fact that 47% of respondents never or only occasionally assessed the effectiveness of their financial governance.

Other interesting findings were:

  • Only 22% of charities indicated that they always made available charity finance training for trustees that needed it.
  • Less than one in five respondents considered that they had the complete skills and knowledge required to fulfil their responsibilities.
  • 49% of respondents said that they had used the latest Charity Commission guidance on charity finance.

Commenting on the findings of this report, Sudhir Singh, Partner and Head of Not for Profit, MHA MacIntyre Hudson said: “Strong financial governance is a major contributor to successful and effective charities, so whilst we don’t want to be overly critical of the good intentions of most trustees and charities, it is difficult to escape the very clear conclusion that many people just need to do better.

Andrew O’Brien, Director of Policy and Engagement, Charity Finance Group said: “This report is an important wake up call for the charity trustees and executive teams. Every charity should be regularly assessing its skills and understanding at board level to ensure that it has the ability to govern itself financially. There are lots of resources out there, but charities need to make a commitment to using them Complacency is simply not an option.”

(Source: MHA MacIntyre Hudson)

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram