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Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
Charities & The Credit Crunch ~ Sweet TLC Ltd
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Charities & The Credit Crunch ~ Sweet TLC Ltd

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Charities and their Trustees need to think and plan for an uncertain financial future.

Charities and their Trustees need to think and plan for an uncertain financial future.

Published in: Business, Economy & Finance
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  • Sweet TLC Ltd
  • Transcript

    • 1. Charities and the Credit Crunch www.sweet-tlc.co.uk
    • 2. Charities and the Credit Crunch
      • 2008- 2009
        • Volatile world financial markets
        • Instability within the banking sector
        • Anxiety at every level of societ y
    • 3. Charities and the Credit Crunch
      • Things will get difficult for charities
        • Demand for services will increase
        • Funding will decrease
        • Some charities will face insolvency
    • 4. Charities and the Credit Crunch
    • 5. Charities and the Credit Crunch
      • 2008- 2009
    • 6. Charities and the Credit Crunch
    • 7. Charities and the Credit Crunch
      • Trustees must:
        • Review financial positions and cash flow forecasts
        • Fulfil their duty to preserve assets
        • Carefully consider where and how assets are held
        • Ensure they have an appropriately diverse portfolio
    • 8. Charities and the Credit Crunch
        • What other issues should trustees look into?
    • 9. Charities and the Credit Crunch
        • Reconsider credit ratings where deposits are held
        • Ensure deposits are covered by a Government protection scheme
        • Even trustees who have advice from investment managers have further questions to consider….
    • 10. Charities and the Credit Crunch
      • Qs
      Qs Qs Qs Qs
    • 11. Charities and the Credit Crunch
          • Does your charity use its investment portfolio to finance its grant funding?
          • If so, can it still continue to meet agreed funding programmes?
      Q
    • 12. Charities and the Credit Crunch
          • Does your charity’s portfolio consist of “permanent endowments”, which prevent expenditure of capital?
          • If so, will you have a shortfall of income?
      Q
    • 13. Charities and the Credit Crunch
          • Does your charity receive grants from large grant making trusts?
          • If so, are you considering the likelihood of cuts in grant income?
      Q
    • 14. Charities and the Credit Crunch
          • Has your local authority had its deposits frozen in Icelandic banks?
          • If so, will your charity be able to continue its programmes?
      Q
    • 15. Charities and the Credit Crunch
      • You need to seriously consider risk:
        • The Medium Term
        • Mergers
        • Restructuring
        • Insolvency
    • 16. Charities and the Credit Crunch
        • The Medium Term
        • Mergers
        • Restructuring
        • Insolvency
    • 17. Charities and the Credit Crunch
        • Anticipate:
          • Government spending will be tightened
          • Consequences of cuts in funding
          • Aggressive contract procurement
          • Falls in individual and corporate giving
    • 18. Charities and the Credit Crunch
        • The Medium Term
        • Mergers
        • Restructuring
        • Insolvency
    • 19. Charities and the Credit Crunch
        • Anticipate:
          • Small charities merging
          • Larger charities merging with small ones to prevent their failure
          • Needing to prepare for merger….
    • 20. Charities and the Credit Crunch
        • Pre merger considerations:
          • Undertake a financial and legal due diligence exercise
          • Ensure understanding of assumed liabilities
          • Identify the potential costs in terms of management time and reputation if a merger were to fail
    • 21. Charities and the Credit Crunch
        • The Medium Term
        • Mergers
        • Restructuring
        • Insolvency
    • 22. Charities and the Credit Crunch
        • Consider:
          • Fair redundancy programmes
          • Dilapidation claims in relation to property leases
          • Implications from contracts or grants with repayment or claw back provisions
    • 23. Charities and the Credit Crunch
        • The Medium Term
        • Mergers
        • Restructuring
        • Insolvency
    • 24. Charities and the Credit Crunch
        • Take every step to minimise potential loss to creditors
        • Where a charity is unincorporated, Trustees are, on the face of it, personally liable for its debts
    • 25. Charities and the Credit Crunch
      • So be prepared:
        • Global attempts to rescue the financial sector may succeed
        • But even if they do the financial fall out will continue for some time yet, so….
    • 26. Charities and the Credit Crunch
      • Get support….
    • 27. Charities and the Credit Crunch
        • Speak with Charities Commission
        • Contact the National Council for Voluntary Organisations (NCVO)
        • Seek specialist financial advice
        • Seek specialist legal advice
    • 28. Charities and the Credit Crunch
      • References
        • The Guardian
        • Russell-Cooke Solicitors
      • FFI visit
        • Charity Commission
        • NCVO
    • 29. Charities and the Credit Crunch www.sweet-tlc.co.uk Thank you for your time

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