How to get the edge when managing charity finances

When we opened our charity finance clinic for a week recently, your questions to our experts – and their insights – flowed. We've highlighted all the best advice so you can stay informed.

The panel
Kate McLeod, chief financial officer at Mencap
Colin Walton, head of client relations, charities, at CAF
Helena Wilkinson, partner and head of charities at Price Bailey
John Tranter, policy consultant at Charity Finance Group

"Trustees and management need to negotiate on common ground"

It's important that organisations find the right balance when there is a disagreement over financial management. Look for external guidance to help resolve such issues with an independent and unbiased view. Helena Wilkinson

"Talk to other charities of your size for advice"

It's always worth talking to people about their experience. However, the most important thing is to be clear what the key requirements are for you and your organisation and to not spend time looking into things which aren't essential for your charity. Kate McLeod

"Spread the burden of responsibility"

It can be a lonely role for a finance manager. The support of a good treasurer trustee is helpful – you need to protect your finance person from potential misunderstandings as money can be divisive if things get choppy. Things like ensuring that there's more than one signatory on bank accounts and that contracts can only be agreed at a trustee board meeting spreads the burden of responsibility. John Tranter

"Trustees and volunteers can help small charities with finance management"

When resources are tight it can be difficult to manage your charity's finances. Some specialist organisations provide support, you could hire an experienced finance director on a part-time basis, or a workable solution could be found in-house where trustees or volunteers may have relevant experience that can be put to good use. Colin Walton

"When it comes to risk – think about cashflow"

When thinking about risk, always concentrate on cashflow and be aware of events that might need you to access additional cash quickly. One small charity I know sent volunteers abroad. Their biggest potential risk was that they might need to repatriate volunteers quickly in the event of civil unrest – so they always made sure they had enough in the bank for that eventuality. John Tranter

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