No more small change

Pressures on charities are intensifying. Against an increasingly challenging backdrop, charities need to change fundamentally if they are to survive and thrive.

What does this mean for charities

Charities are already drawing on reserves but this is a temporary measure and more fundamental change will be needed to achieve longer term sustainability. There are five key areas to consider.

Diversification and prioritisation of service

It is essential that charities identify their strategic priorities and form an objective view of which capabilities, services and products are aligned to this and which should be stopped.

Embracing digital services

Technology opens up opportunities to deliver new services entirely: Mobile apps can offer different, engaging experiences for beneficiaries and collaboration tools can enable staff and volunteers to work remotely and flexibly to be productive.

Targeting efficiencies

Efficiencies can be achieved through rethinking how services are delivered and focusing the number and breadth of services on the most viable areas - whether geographic, customer or product based.

Increased collaboration and partnership

Collaboration offers opportunities to reduce administrative and 'back office' costs by sharing services within and across charities while still retaining the brand, strategic purpose and front line delivery unique to each charity.

Income Maximisation

Charities need to be more commercial in their retail functions and drive more unreserved income. They are increasingly required to embrace practices that are more typical of the private sector, such as understanding and actively engaging with customers and donors.

If charities are to be sustainable in future, embracing this radical change agenda will be essential.

Contact us

James Bowman

Consulting Director, PwC United Kingdom

Tel: +44 (0) 7841 563 804

David Gimson

Senior Manager, PwC United Kingdom

Tel: +44 (0) 7841781211

Paul Deegan

UK Consulting Partner, PwC United Kingdom

Tel: 07903720714

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