Running a start up charity
Julian Lomas
Recently we have been working with several start up charities, both registering new charities and helping the founders of recently registered charities get things up and running.
What these clients tell us is that there a lot of advice (of varying quality it has to be said) available on registering a new charity, choosing the right legal structure and objects, finding Trustees, opening bank accounts, getting HMRC recognition, etc, but very little on the challenges you’ll face once the charity is registered.
We’ve been reflecting on this and what simple tips we can offer to help new charity founders get things off the ground once they finally have that elusive Charity Commission registration and a bank account.
As we see it, the critical things to think about both before registering a new charity and in the early years of operations include the following:
Make sure you have the capacity and resources in place to make the early years of your new charity a success. Many founders are, frankly, “forces of nature”; inspiring and energetic people who get things done. But founders can rarely do it alone and nor should they. Much better to have a team of Trustees and volunteers (assuming you can’t yet afford staff) who have the time and skills to make the charity a success.
Have a plan at least for the first couple of years, ideally also thinking little longer term. Write it down and share with others; you’ll find that writing down your plans, even on one page, will order your thinking and reduce your stress levels. The plan should cover not only what services/projects you will deliver but where the money will come from and any other key resources and partners you need to do what you want to do. Plans should not be static or rigid; keep them under review as your circumstances change.
Fundraise early and don’t try to raise funds from everywhere to start with. Focus attention on the best fundraising options for your charity, and think seriously about some form of start up appeal (e.g. crowd funding) to build a small war chest to get things moving, build track record and remove some of the financial stress from the early phase of your work.
Don’t try to deliver too much too soon; tailor your ambition to your resources/funding. It’s always better to under-promise and over-deliver than the other way around.
Keep good records right from the start. This is not just about financial records (bookkeeping), though that is very important (having an accountant who knows about charities will make a huge difference to this); it’s also about evidence of impact, for example asking your beneficiaries what difference your services/project are making to their lives so you can tell funders and others not only how many people you help but also what the impact of your work is on the people you support.
File statutory accounts and returns on time. This gives funders confidence you are on top of things and, if you get accounts filed early in your first few years you will open up more funding opportunities. You need good records to be able to do this.
Make sure you have the right policies in place to run things safely and securely, and to satisfy funder and regulator requirements. This should include at least safeguarding, health and safety, financial controls and data protection and is likely also to cover things like complaints, whistleblowing, equity, diversity & inclusion, codes of conduct and more.
Get advice when you need it. This could include a good accountant with experience of charity accounting, legal advice if you need it, governance support and expert mentoring or coaching to help you on your way. It will relieve some of the stress of start up and help you do an even better job.
All in all, the key is to lay the groundwork before you get too far into delivery. Take the time to plan and put the key building blocks in place before you apply for registration as a charity as well as while you are waiting for the Charity Commission and banks during the set up phase. A little time spent getting it right from the start will make it easier later and keep you and your beneficiaries safe in those exciting, whirlwind early years of a new charity.
Most importantly, enjoy it; making a difference in your community is one of the most fulfilling things you can do.
To find out more about the services we offer to help start up charities, please contact us at julian@almondtreeconsulting.co.uk to arrange free initial telephone discussion.