Support for the Charity Sector during Covid-19

With the nation dealing with the impacts of Covid-19, the charitable sector has seen a fall in donations, cancelled fundraising events, closed retail shops and stretched resources.

Charities are often in a unique position, operating on a not for profit basis and engaging people in various roles such as paid employees, volunteers and sponsors with trustees having ultimate responsibility. Nearly all charities are affected by the current pandemic including those created with the aim of alleviating poverty, helping the vulnerable and combatting inequality and continuing with this work will be high on the agenda during the current pandemic.

Trustee responsibilities 

Charity trustees will wish to continue providing essential services for their beneficiaries. This will require review and updating of the business plan to take account of reduced income and diminishing reserves. There will also be an increased need to have up-to-date financial information (including cash flow and budgets) so that trustees can take properly informed decisions.

Charity trustees will be particularly concerned about the effect on resources and reserves and the need to inform the Charity Commission where there has been a serious fall in income.

It will also be beneficial for charities to have the benefit of written policies to cover key issues so that the trustees can demonstrate that they have followed Charity Commission guidance about good governance.

Staff wellbeing 

With an increase in demand for charitable services employees are likely to face heightened workloads which may lead to work related stress. It is essential that during this time charities are mindful of their duties as employers and ensure that they promote employee wellbeing. It is important that staff feel supported within their roles especially those working with vulnerable service users.

For further information on employee wellbeing see our guidance.

Financial support

The Treasury has announced a £750 million fund to support frontline charities.

How the funds will be allocated:

• £360 million - aimed at charities providing key services and those who support vulnerable people (including ambulance organisations, hospices and charities supporting those dealing with domestic abuse).
• £370 million - available for smaller charities supporting local communities, including a grant to the National Lottery Community Fund.
• £20 million – in matched funding to donations made during the BBC’s Big Night In fundraiser (with a minimum of £20 million pledged to the National Emergencies Trust).

In addition to the fund extra support may be available for struggling charities, in the form of the below:

The Coronavirus Job Retention Scheme (CJRS) supports businesses by paying 80% of furloughed (on leave) employees' wages up to £2,500 per month. This has proved beneficial to charities that employ retail workers for example, although the use of furlough may not be an option for frontline workers and those operating within the community.

Charities may also benefit from the Coronavirus Business Interruption Loan Scheme (CBILS) which supports small to medium size businesses in gaining access to loans of up to £5 million, with part of the loan being guaranteed by the government. Certain charities could potentially be eligible for CBILS but this is dependent on how their trading income has been affected by Covid-19.

Government guidance 

With business not operating as usual the government has provided specific advice to charities to assist them in running their organisations. The position regarding company meetings and fundraising partnerships is summarised below.

Trustee meetings and Annual General Meetings (AGMs)

In these circumstances it may be extremely difficult for trustee boards to meet in order to hold business critical meetings. According to the guidance charities may be able to postpone or cancel their AGMs and other critical meetings.

It is essential that all trustees decisions are properly recorded to demonstrate proper governance of the charity especially where the cancellation of a meeting may cause issues in filing reports and accounts. The advice to charities that may have issues with filings is that they should contact the Charity Commission via email, where they have imminent filing dates (i.e. the submission of annual returns).

Online and telephone meetings

With the country in the midst of a lockdown, charities may need to convene trustee meetings online and there are a variety of free online conferencing platforms available. Your charity's governing documents may contain provisions relating to virtual meetings, however if this is not the case the decision to hold virtual meetings should be recorded in order to demonstrate proper governance of the charity.

Partnerships in challenging times

It is anticipated that charities may wish to enter into fundraising ventures during this difficult time. Therefore it is important the trustees should always take decisions on the basis of what is in their charity's best interest. Charities should asses the risks and ensure that they are appropriately managed. Consequently all aspects of a proposed arrangement should be fully considered before entering into the arrangement.  

To view the full list of considerations please see government guidance.

Additional charity partnership guidance is also available here.