UK Fundraising, in their article, explain what their 10 key fundraising risks are and what trustees can do to mitigate against them. As trustees know fundraising can be a risky business and it is important for organisations be aware of whet theses are and take the necessary actions.
The risks they discuss include:
- Lack of a robust fundraising strategy – so that fundraising is conducted ad hoc with no real targeting of investment in the most promising areas. The answer here is to develop and maintain a costed fundraising strategy, linked to your organisational business plan, that focus on the future growth areas you have identified as your best future opportunities.
- Over reliance on a few income sources – such as too much funding from statutory sources. The answer to this is diversification, which can take time but is usually possible and makes your organisation more sustainable. The risks of not diversifying are financial decline and even organisational closure.
- High staff turnover – This can be very damaging for your income, as new staff take time to learn about the organisation and possibly to develop their skills. Departing staff can also take their contacts with them. If your organisation is affected, find out why people are leaving and seek to win greater loyalty – it will pay for itself in the long run. If you have an effective fundraising team, try to keep them at all costs.
- Compliance issues – In recent years especially, data protection has been a major hygiene factor for fundraising charities, so it is imperative to have someone who understands your obligations in handling personal data – GDPR is here to stay, Brexit or no Brexit. Other compliance risks include late filing with the Charity Commission, which funders will notice, so ensure your finance team is on track to file on time.
To read the full article click here.