In this issue of the Governance Blog, we are highlighting a recent Charity Commission blog, Good financial health starts with good financial habits, which explores how charities can strengthen their financial resilience.
The blog reflects the ongoing pressures facing the sector, including a challenging funding landscape, reduced donations, and rising operating costs. In this environment, strong financial management is more important than ever to support sustainability and long-term impact.
The Charity Commission outlines several key elements of good financial management:
Maintaining a clear budget that is regularly reviewed
Having a reserves policy that is understood and actively applied
Ensuring all trustees, not just the Treasurer, understand the organisation’s financial position
Acting early and decisively to address financial concerns before they escalate
Encouraging trustees to speak up and work collaboratively if improvements are needed
Making use of available guidance and tools, including:
If you need further support with your charity’s finances, our team is here to help. You can contact us on 0191 323 2040 or email development@voda.org.uk.
To build your confidence further, you can also access our free online short course, Essentials of Charity Finance, available on the Elements Training Portal. This course is designed to help trustees and staff understand financial reports, balance sheets, and accounts, supporting better governance and informed decision-making.
