Articles

COVID-19 – Advice for Charities

30 March 2020

Charities are at the forefront of the nation’s response to the current crisis, being vital to the delivery of much-needed services, many of which are now in even greater demand. Yet charities face particular complexities, due not just to increased demand but also pressures on their funding models and the extent to which they rely on volunteer support – from board level to the front line. Charities may experience all the challenges being tackled by other types of organisations, but they are also subject to the additional requirements of charity law and regulation.

The immediate key message for charities is to ensure that they have sufficient funds to continue the essential work they do. It is important to review staffing levels and, where possible, make use of Furlough Leave to support those staff who cannot work: acting sooner rather than later is essential, so that funds can be directed to service delivery and, in some charities, survival. Where relevant, charities should also apply for available local authority grants and liaise with Government in relation to immediate funding for critical service cover.  We can support with contract discussions and ensuring that charities are protected as much as possible from complications arising from grant and contract conditions.

Charity regulators, including the Charity Commission for England and Wales, the Office of the Scottish Charity Regulator, the Charity Commission Northern Ireland and the Fundraising Regulator, have produced helpful guidance and confirmed the relaxation of certain usual requirements (for example, holding virtual meetings even where a charity’s governing document does not permit this). The Institute of Fundraising, NCVO, other umbrella bodies in the sector and other relevant regulators such as Companies House and the Information Commissioner’s Office have also provided extensive online guidance which is being updated as the current situation develops. In addition to Government schemes, funding initiatives such as the National Emergencies Trust’s Coronavirus Appeal, to support local charities and grass roots organisations, have been launched and a number of major funders have offered flexibility on reporting and other requirements.

We are here to help you navigate your way through the guidance, revised requirements, applicable laws and regulations and to support you in determining what is relevant to your charity’s particular circumstances and what that means for your charity. For trustees and senior staff, leading a charity in this environment is stressful, complex and constantly subject to rapid change: we can work with you to alleviate the burden.

Your charity may be experiencing any or all of these challenges:

  • Funding, including whether you can deliver on existing commitments to funders, whether restricted funds or reserves may be spent, assessing and coping with reduced income from investments, trading operations and donations and the consequences of cancelled fundraising events.
  • Staff and volunteers, including how best to keep them safe, how to pay staff, dealing with sickness absence and leave, contractual matters.
  • Contracts, including those relating to events and services having to be cancelled or performed differently and with suppliers whose supplies are either no longer needed or can no longer be provided.
  • Buildings and related obligations, including where charities are landlords or tenants.
  • Insurance, including whether existing policies provide cover for the risks arising from COVID-19 or whether extended cover may be purchased or if COVID-19 is excluded.
  • Governance, including how to ensure and maintain effective governance and make valid decisions when meetings are held online.
  • Risk management, including the reputational risk the crisis poses for charities.
  • Fraud, including COVID-19-related online scams and phishing emails to which staff and volunteers must be alert and remain vigilant.
  • Possible insolvency, including where the impact of the crisis is of such severity that it could lead to closure.

For more information, please contact Benjamin James at [email protected] or Jayne Adams at [email protected]. More details on specific issues identified above are also available in our COVID-19 Hub:

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