Charities remain a powerful force for good, bringing communities together and supporting the UK’s most vulnerable people despite “stormy weather”, the Charity Commission’s chief executive has said.
Speaking virtually at the Institute of Chartered Accountants in England and Wales annual Charity Conference this week, David Holdsworth said charities were facing challenging times “like ships navigating stormy seas”.
Holdsworth said inflation pressures, rising operational costs and increased demand for services had created a “perfect storm” for many organisations.
“Some charities are having to dig deep into their reserves, while others are finding themselves in uncharted waters,” he said.
“We can’t change the weather but, just as a lighthouse keeper guides vessels safely around hazards, you, the charity accounting experts working hand in glove with trustees and boards, can help charities navigate and avoid the rocky outcrops that could hole and sink the ship.
“We at the Charity Commission also stand ready with advice and guidance to support the sector as it navigates these turbulent conditions.”
Holdsworth said chartered accountants played a key role in ensuring charities’ financial systems were “watertight”.
“Even in the choppiest waters, strong financial management and transparent reporting act as a sturdy anchor, helping charities maintain stability and public trust,” he said.
He said being data and insight-led was the best way for the Charity Commission to be a “supportive and robust” regulator.
“A lot of the work we have on the horizon aims to strengthen our commitment to gaining better insights,” he said.
“We have been collating data from our annual return 2023 to better understand how we can effectively support the sector moving forward.
“I look forward to sharing the valuable insights – particularly from our new questions – later in the year.”
Holdsworth asked chartered accountants in attendance to continue supporting charities in 2025.
“Ensure, as the finance experts and navigators, that you are looking out at the horizon – helping trustee boards spot the rocks before the ship hits them,” Holdsworth said.
“This might mean leading uncomfortable conversations, and advising they shift course to achieve their charitable purposes and protect their beneficiaries.
“As the ship navigators, supported by our guidance, you ensure the some 170,000 ships that make up our charity sector hold strong and do what they can to stay on track – and weather any storm.”