18% of charity chief executives believe that their organisation is struggling to survive, according to a survey carried out by the Association of Chief Executives of Voluntary Organisations (of which I am a member).
What is particularly worrying is that charities with a turnover of less than £1 million were disproportionately represented in those who are taking a pessimistic view. Those of us leading larger organisations are fortunate to have more options available to us, and the loss of one or two key income streams will not compromise the financial viability of the organisation as a whole, even though individual services might close.
It is these small organisations that are probably the closest to their communities but may also be ones that are least equipped to respond to a worsening economic environment.
Three small organisations have sought sanctuary by joining BHT over recent years – Threshold Women’s Counselling, the Hastings Community Housing Association (HCHA), and the Whitehawk Inn. There are some efficiencies to be gained by such mergers, but they are often overestimated. The real advantage can come through shared central expertise and improved cash flow.
Merging with a larger organisation can ensure the continuation of services and doesn’t necessarily mean a loss of identity. Threshold is still called Threshold, HCHA is now Hastings Community Housing, and the Whitehawk Inn remains the same.
There is a loss of autonomy with the governance and management arrangements of the ‘receiving’ organisation tending to take over, and the business disciplines will be applied across the expanded organisation.
An understandable mistake that trustees of small, struggling charities are known to make is to hope a corner will be turned or something cropping up. That very rarely happens. They might leave an approach to a larger, relatively stronger, organisation too late. It is tough to be at the helm of an organisation that is struggling. I know, I have been there. But an early approach can result in charitable services being saved and continued. After all, that is why we are here.