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1. Executive summary
With the global pandemic it has never been more important to have a clear strategy
in place. Consistent and well-defined strategies contribute significantly to effective
charitable operations. Effective strategy-setting makes it clear exactly what a charity is
trying to achieve, and whether or not it has achieved it.
It helps demonstrate effectiveness to an external
audience, and enables senior management and trustees
to guide the future direction of the organisation. It is also
integral in meeting statutory reporting and best-practice
requirements expected by the regulators.
With this in mind, RSM has examined how charities in the
UK are setting their strategies and reporting on progress
over time. In an attempt to measure how charities
measure themselves, we mapped the strategies, aims and
objectives set by a diverse sample of 40 charities in both
England & Wales and Scotland and traced their reported
progress against these goals over a period of five years,
which we consider makes this research unique. We also
analysed financial data to assess the financial health of
each charity.
Unlike other assessments that have looked at charity
strategies, our research provides a comprehensive view of
charitable reporting. We have considered both the overall
strategic plans, but also its connection to each aim/factor
as it is reported and tracked year after year.
Aims contained within strategic plans can be categorised
as either low or high-level
Low-level aims made up around 86 per cent of
those set over five years
45 per cent of all charities set at least one highlevel
aim within the five-year period
Setting aims, whatever their ambition, is one thing. If they
are not achieved, there is no reporting on progress made,
or they are so vague as to be unmeasurable, then it can
defeat the object.
• On average, one in four aims set over the five-year
period was omitted from reporting in subsequent years
• Just over 50 per cent of aims were reported as
achieved across all charities over the period
• Achievement was negatively impacted by the number
of unmeasurable, or vague, aims initially outlined
Ultimately, any charity's ability to have an impact relies on
its underlying financial health.
• Approximately a quarter of the sample had a potential
financial risk factor that could impact their ability
to develop strategy and achieve aims over time
• Only a few of these properly addressed this
within their going concern disclosures
• No organisation can truly expect to fulfil its
objectives without having a strategic plan in place,
However, the time horizon of a plan can vary.
• Almost a quarter produced annual
strategies that were either substantively
or literally identical every year
• The largest charities were more likely to
adopt longer-term strategic plans
• 15 per cent either abandoned, changed
or completed their medium or long-term
strategic plans before the conclusion
of their intended timeframe
Key findings
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