June 20, 2016

Charities failing to embrace benefits of collaboration, warns report

A comprehensive survey conducted by charity umbrella body, the Foundation for Social Improvement (FSI) found that 44 per cent of small charities were not involved in any kind of collaboration, and that only 5 per cent of those in collaboration had involved themselves in mergers and acquisitions (M&A) activity.

The report urged small charities nationwide to form ‘strategic alliances’ in order to survive potential closures, after one in ten small charities told the FSI that their chances of closure in the next 12 months were ‘likely’.

The report read: "Not enough small charities are committing sufficient resource to the development of significant collaborations when the benefits of doing so could prove vital to the continued successful delivery of services and improved impact on beneficiaries.”

89 per cent of charities in a strategic partnership told the study that they committed either less or an equal amount of time to delivering the same proportion of services under their new alliance.

Pauline Broomhead, founder of Small Charity Week and chief executive at the FSI warned that smaller charities in particular were ‘missing out.’

“The results from the research indicate, quite strongly, that small charities don’t collaborate enough in any meaningful way,” she said.

Royds has a wealth of experience in dealing with charity mergers and advising charity clients on the laws and regulations affecting the sector. For further advice on these matters contact Tony Millson or Deanna Hurst.

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