Trustees: How comfortable are you with finances?

Author's position
RVA Advice Worker
Primary interest
Voluntary sector

You may recall the high profile news surrounding the closure of Kids Company last year, following reports of mismanagement of charity finances. So what did this mean for the sector and more specifically for Trustees? Putting aside the unnecessary media scaremongering, the most valuable take home lesson we can all learn is good financial management and governance is key to running a successful charity that can meet the needs of its beneficiaries (A year after the Kid’s Company demise, what have we learnt The Guardian, August 2016)

So what is ‘good financial management‘? Firstly, it’s recognising that although a treasurer’s role is key, it is not the sole responsibility of the treasurer to be able to understand and make sense of the charity’s financial information. Trustees share this responsibility in law. Trustees should feel comfortable with scrutinising the financial reports and updates at their Board/Committee meetings (Charities Commission enquiry into Bangladeshi Parents and Carer’s Association, October 2016, )

Next steps to help you feel more confident…RVA is hosting a training session for Trustees next week: Don’t Panic: Introduction to Financial Management – 20 October 2016. The session will be delivered by Rachel Eden of Holy Brook Associates. Testimonials from previous course attendees here

As always, if you have specific queries on governance matters, please drop us a line at advice@rva.org.uk or 0118 937 2273

Herjeet Randhawa
RVA Advice Worker