Financial planning for charities and trustees
Planning around your purpose
Managing a charity’s finances means balancing today’s needs with the organisation’s longer-term purpose.
Trustees may need to consider reserves, investments and the income required to support their charity’s work. We start by understanding your organisation, its objectives and the responsibilities behind your decisions.
Arrange an initial conversation
Supporting informed financial decisions
Every charity has different needs. Its governing document, activities, commitments and funding arrangements all help shape the financial decisions its trustees face.
Our role is to help you explore the financial planning questions within our area of expertise, working alongside your accountant, solicitor and other professional advisers where appropriate.
Understanding your reserves
Money needed for day-to-day activities or foreseeable commitments has a different purpose from funds available for longer-term investment.
A useful starting point is to understand which funds are available, when they may be needed and whether restrictions apply to their use.
Considering investments
Investment decisions need to reflect the charity’s objectives, time horizon, income requirements and ability to withstand losses.
Trustees may also need to consider liquidity, diversification, charges and any ethical or other investment requirements relevant to the organisation.
Investments can fall as well as rise in value. Returns and income are not guaranteed, and money may not be readily available when needed.
Balancing income and long-term needs
Some organisations need regular income to support their work. Others are setting money aside for future projects or commitments.
Considering those needs together can help trustees assess the trade-offs between accessible cash, investment risk and the longer-term effect of inflation.
Keeping arrangements under review
A charity’s circumstances can change. Funding, spending plans, trustees and investment markets may all develop over time.
Periodic reviews can help trustees consider whether existing financial arrangements remain consistent with the organisation’s objectives and requirements.
A clear starting point
Your organisation
What is your charity’s purpose, how is its work funded and what financial commitments lie ahead?
Your current arrangements
How are cash reserves and investments held? Are there restrictions, existing policies or professional advice that need to be considered?
Your priorities
Are you reviewing existing investments, considering longer-term funds or seeking a clearer understanding of the options available?
Working alongside your professional advisers
Financial planning sits alongside the charity’s governance, accounting and legal arrangements.
Trustee duties and investment powers depend on the organisation’s legal structure, governing document and applicable law. Financial advice does not replace legal or accounting advice, or the trustees’ own decision-making responsibilities.
Let’s discuss your organisation’s needs
An initial conversation gives us an opportunity to understand your charity, the questions you are considering and whether our services are appropriate for your requirements.
Important information
The value of investments and any income from them can fall as well as rise. Your organisation may get back less than it invests. Past performance is not a reliable indicator of future results.
Tax treatment depends on the organisation’s circumstances and may change. Charitable status does not mean every activity or investment is automatically exempt from tax.
Tax and legal advice are not regulated by the Financial Conduct Authority. This page provides general information for UK organisations and is not a personal recommendation.