of charities are experiencing increased demand
of charities are needing to deliver the same, or more, with fewer resources
of charities delivering public sector contracts rely on other sources of income to fulfil these contracts
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.
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.
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.
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.
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.
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.
Senior Manager, PwC United Kingdom
Tel: +44 (0) 7841781211
UK Consulting Partner, PwC United Kingdom