CHARITIES face a diverse set of challenges in the current economic climate.
And how Manx organisations are coping with reduced government spending, low interest rates, changes in legislation and an unpredictable economy was under discussion at an event hosted by financial analysts at PwC at the Villa Marina.
Ian Oakley-Smith, from PwC UK’s London office, spoke about the continuing challenges faced by charities in the UK and delivered a presentation on ‘Managing in the “new normal”’.
His presentation addressed key messages gathered from the surveys, which will be relevant to UK and island charities over the coming year. He offered advice on finding sustainable strategies, finding a balance between remaining independent and collaboration, strategic funding and demonstrating financial leadership.
PwC director Gordon Wilson concluded the event by delivering the results of a recent survey, conducted by the firm, of the charities sector in the Isle of Man.
He said: ‘We posed a number of questions relevant to the overall sector and believe the results are beneficial in helping island charities to continue to plan and structure in the current climate.’
Around 40 respondents took part in the survey, the majority being small to medium-sized charities operating only in the Isle of Man. Questions covered a range of issues, including respondent’s views on government involvement, issues faced over the past year, future outlook and levels of reserves.
The results showed that, while a reasonable proportion of respondents felt that there was a healthy relationship between charities and the Manx government, many would like to see more outsourcing of services to charities during 2013, as well as other initiatives such as gift aid and secondment of government staff into the charity sector.
This call for support comes as 66 per cent of respondents recorded an increase in demand for their services over the past 12 months and 63 per cent predicted an increase in the coming year.
Respondents suggested that the reasons behind the growing demand for charitable services could include the economic downturn, cuts in government spending, demographic changes and environmental pressures.
Many charities which responded to the survey had found it necessary to dip into existing reserves to cover the gap between funding and demand for services, with the majority that are doing so having sufficient reserves to cover core costs for the next 18 to 24 months.
This was not regarded as a long-term solution to fundraising shortfalls, however, and more than 50 per cent of respondents had carried out a review to determine future plans.
The majority of respondents were optimistic about the outlook for their charity over the next year, adding that support such as having better access to IT expertise, the involvement of more qualified directors and recruiting more volunteers would be of great benefit in meeting demand.
David Gawne, director of the Isle of Man Council of Voluntary Organisations (CVO) expressed appreciation to PwC Isle of Man and the individual speakers. He said: ‘The results of the survey, to a very large extent, reflect the CVO’s reading of the current situation and will help to finalise our strategy for 2013.’