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Leadership & Governance
The Top Three Trends Affecting Charites
Mike Preston Between Roles at Between Roles Posted 9 months ago
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In today's rapidly changing world, charities face new challenges and opportunities.
- This week we explore the top three trends impacting the sector: digital transformation, impact measurement, and the need for sustainability and resilience.
- We discuss how these trends shape the way charities operate and engage with supporters.
Trend 1: The Rise of Digital Transformation
The digital age has revolutionized how charities operate and engage with their supporters. From fundraising to volunteer management, technology offers a wealth of opportunities. However, it also presents challenges, such as data security and the need for continuous adaptation.
Trend 2: The Growing Importance of Impact Measurement
Donors and funders are increasingly demanding transparency and accountability from the organisations they support. They want to have a clear understanding of how their contributions are making a tangible difference in the world.
Effective impact measurement is absolutely essential for building trust with these stakeholders and attracting long-term support. By demonstrating the positive outcomes and changes resulting from their donations, organisations can foster a stronger relationship with their donors and ensure continued backing.
These outcomes could be soft for example skill development, or hard such as employment or imporvement in health.
Trend 3: The Need for Sustainability and Resilience
The COVID-19 pandemic has truly underscored the critical importance of building resilience and sustainability within organisations. In particular, charities must be proactive in adapting to ever-changing circumstances, which can be unpredictable and challenging.
To thrive in the long term, they need to diversify their funding sources, ensuring they are not overly reliant on a single stream of income. Additionally, optimizing their operations is essential to maintain efficiency and effectiveness, which will help ensure their long-term viability and success in fulfilling their missions.
Trustees should have several items on their agenda each month. These include the Finance Report, Restricted Funding Report, and Funder Relationship Summary. These all help not only in looking at the current performance but also allow the trustees to identify any risks to program delivery, and in turn, provide fundraising teams with priorities.
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