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Managing Key Risks in Charitable Organisations

Charities do a lot of good, but they also face many challenges and risks. This article will talk about five main risks and give some easy tips on how to deal with them, so charities can keep helping people without any trouble.

Governance Failures

Some charities face problems because they don’t manage things properly. For example, a charity called Kids Company had to close because it didn’t have enough money saved and depended too much on donations. To avoid such problems, charities should train their trustees well and make sure they have enough knowledge to manage risks.

Tip: Invest in training for trustees and keep a close eye on how the charity is run.

Financial Mismanagement

Managing money properly is very important for charities. A charity called Hope House had problems because it didn’t follow its own rules for managing money. To avoid such issues, charities should follow the Charity Governance Code and manage their finances properly.

Tip: Follow financial rules strictly and keep a clear record of all transactions.


Charities need to protect their computer systems and data from hackers. Many charities don’t realise when they are attacked, so it’s important to have good security measures in place and to train staff to recognise threats.

Tip: Keep computer systems secure, train staff on cybersecurity, and stay informed about new threats.

Climate Risk and Sustainability

Charities also need to be careful about how they affect the environment. They should follow rules about reporting their energy use and carbon emissions and try to be more sustainable.

Tip: Follow environmental rules, report energy use and emissions, and work towards being more eco-friendly.


Charities need to make sure that the people they help are safe. If someone alleges harm, charities should have clear rules on how to deal with it quickly and fairly. Delays can lead to loss of trust and damage to the charity’s reputation.

Tip: Have clear safeguarding policies, respond quickly to allegations, and make sure staff know the correct processes.

Charities do important work, but they need to manage risks properly to keep doing good. By managing things properly, keeping finances in order, protecting against cyber threats, being eco-friendly, and keeping people safe, charities can continue to make a positive difference in the world.

It’s important for charities to stay informed, follow best practices, and create a responsible and transparent culture to keep making a positive impact in the world. Keep it simple, stay safe, and keep doing good!


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