I read an interesting article recently about a large, well known charity in the UK. This charity has grown hugely over the last few years, helped by the fact that it has been awarded millions of pounds from the UK government towards its work as well as from other famous benefactors.
The investigative report suggests that, as the organisation has grown hugely in a short space of time, the way it operates has not grown in the way it needs to. It listed ways in which it wasted money and gave it to individuals and programmes that didn’t meet its objectives. It was suggesting mismanagement and misuse of funds.
To balance these findings, it appeared to quote a number of concerned staff and volunteers – and we don’t know how representative they are of the whole, or whether they have an axe to grind – and there was the expected rebuttal of the allegations from the Chief Executive of the charity. However, I believe that the suggestion that the organisation needed to undertake an audit of its operations in view of its rapid growth appears to me to be sensible and valid.
Every year, your organisation will – or should – undergo an audit of its financial activities. Depending on your size, this may be merely an unconnected individual giving a quick check that all appears in order, or it may be a formal independent examination or full audit, whatever is appropriate. But the finances are only one aspect of your operations. Do you ever think of auditing other areas? Maybe a governance review, looking at how Trustees operate, how they interact with staff and volunteers, and how staff work with volunteers. Do staff and volunteers understand your aims and vision? Maybe changes could improve the overall operation. What about looking at the processes and how things get done, and whether they could be completed more efficiently and effectively? It could be something as fundamental as whether what you do meets your charitable objectives, as it is easy to drift away if you don’t keep a clear focus on them.
It may be that your organisation is being as effective as possible and working in the best way it can – but wouldn’t it be good to know that for sure? Many of our businesses undertake these sorts of audits – but what about our charitable organisations?
It is good to do this as individuals, and many of us do. Some of us will do this at the turn of the year – maybe making resolutions or setting personal goals for the coming 12 months. Others do this at the end of the summer to tie in with the change of the academic year in September. Some of us do this at other times of year – or even on a more regular basis.
Your organisation may want to think about undertaking some sort of audit of its operations and governance. It would be sensible to do as there may be gains to be made – but it will also show that you take your responsibilities seriously enough to do this and it will reflect well on your charity. It doesn’t have to be hugely expensive. You can do something yourselves (and if you want to do so, I can make suggestions on what you need to look at), or better still, bring in someone from outside for a fresh pair of eyes on your organisation. I would be happy to discuss this further if you want to give me a call.
Don’t be the sort of organisation that hits the headlines for the wrong reasons. Keep your organisation fit for purpose and operating well, continuing the excellent work that you are engaged in. A review always shows up something – it could be something right rather than something wrong – and often shows up new opportunities!!