Cloud-based enterprise tool Xledger is aiming to take UK mid-market businesses by storm through the use of automated, flexible business software, but a tough task awaits them as competition hots up in the sector.
No matter their size or the cause that drives them, long-term grants are the Holy Grail for organisations in the voluntary sector in ensuring financial sustainability. Against a backdrop of slow economic growth, however, significant reforms to the shape of government spending has made securing such contracts an unfair fight for organisations on the smaller end of the scale.
There’s no denying the fact that charity accounts are complex entities. Research shows that a university level of education is needed to understand most annual reports – and that’s just the summary at the end of the year. While non-profits have a duty to report back on spending to key stakeholders, the way in which they do this varies hugely across the board.
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From shrinking public sector budgets, local authority cuts and lack of long-term funding, charities across the UK are feeling the financial strain of a volatile economy. Unfortunately, the situation is made significantly worse by the number of instances of fraud that occur within the third sector each year.
In one year alone, the UK’s top 100 charity fundraisers earned £3 billion in restricted funds – that’s according to new research from Xledger highlighting just how much of a challenge this type of income poses for finance teams.
Annual reports show that, for some charities, over 90 per cent of their earned income last year came in the form of restricted funding. Out of the 100 fundraisers on the list, more than a quarter recorded restricted income of 50 per cent or more.
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