Advice issued for dealing with sudden large increases in funding due to Ukraine war
Melanie May | 30 March 2022 | News
The Charity Commission has issued new advice for charities that receive sudden and significant increases in funding in response to the Ukraine crisis.
It states that the trustees of charities that find themselves in this situation should carefully consider the practical implications for their organisation, particularly if they are a smaller charity and the proportionate increase in funding is very large.
The regulator recommends that charities:
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- review whether they need to change the way they work and how they operate, for example bringing in more expert staff in support areas such as financial management, as well as operational or ‘front line’ areas
- maintain clear records on decision-making, with supporting evidence
- assess the risks of dealing with the extra income, for example checking whether their financial controls are still suitable
- think about whether their reporting requirements may change
Its guidance for charities and trustees responding to the crisis in Ukraine also covers setting up new charities to help people in the Ukraine, changing charitable objectives to offer support, safeguarding, organising or participating in aid conveys, complying with financial sanctions, and working with new partners.
The Commission has also previously issued advice on ‘knowing your donors’, to help charities take into consideration any potential reputation impact of accepting a donation.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.