Staying small is often a good thing – it can help you focus on a local community’s needs, for example. If your charity does grow, you’ll have a lot more to think about because you’ll be doing more. The following questions are designed to help you plan for growth as well as highlighting common pitfalls.
Is the growth sustainable?
Sometimes charities grow to meet an urgent need, such as a disaster. Once that need isn’t there, your charity may end up bigger than it needs to be. Make sure you balance what’s needed now with what’s needed in the future. Also, will your charity’s income sources always be there? You might want to think about researching emerging trends in your charity’s environment.
Do you have the right people?
Larger charities may need trustees with particular skills, knowledge and experience. You’ll also probably find you need more trustees, so start thinking about how you’ll recruit new trustees. You’ll also need to make sure everybody’s roles and responsibilities are clear – job descriptions could be a good idea.
Do you have the right rules in place?
If your charity wants to do things differently (or change its aims), you’ll need to make sure that your charity’s rulebook (its ‘Governing Document’) allows you to change the way it operates. If it doesn’t, you might need to to make sure it can continue to operate effectively.
Have you got the right financial and reporting mechanisms in place?
You’ll need to manage your charity’s increasing cash flow carefully, monitoring and reviewing financial performance. Small charities benefit from simpler accounting and reporting requirements. If your charity’s income grows, your legal obligations may change.
Have you thought about working with others?
It often makes sense for charities to pool their resources. Collaborations and partnerships can help charities with similar aims do more for their beneficiaries. In some cases, this can even become a permanent arrangement through a merger.
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