Bates Wells’ have launched a new online tool which guides charities and social enterprises through next steps on insolvency, merger, collaboration, cost cutting, raising finance
Bates Wells’ new Crisis Decision Tool aims to help charities, social enterprises and other non-profit entities facing financial difficulty, who are unsure of the next steps to take.
The free and easy-to-use tool provides clearly structured, tailored guidance on what options are available. The user just needs to answer up to six questions to receive a detailed report on the options covering merger, collaboration, cost cutting, raising finance, insolvency advice and mechanisms, and other relevant content.
The tool has been developed in response to the challenges faced by the sector as a result of Covid-19. As the impact of the pandemic becomes clearer, it is thought that UK charities face a £10.1 billion funding gap over the next six months, with one in ten organisations facing bankruptcy within the next six months. As a result of this, the number of organisations facing difficult financial and legal decisions is expected to rise.
The Decision Tool was developed after consulting with NCVO (National Council for Voluntary Organisations) on the sector’s needs. It’s available to explore here.
Philip Kirkpatrick, Head of Charity and Social Enterprise team at Bates Wells, says:
“Charities and social enterprises are facing a reduction in income just when they are needed most. We have seen a dramatic increase in the number of calls to our sector helpline. Many organisations will have to make difficult decisions in the coming months and we have developed this tool to guide them. We hope it’s a resource that many find helpful in these challenging times.”
Josie Hinton, Capacity-building Programmes Manager at NCVO, says:
“The launch of this free tool is timely. We know that the coming months are going to be extremely challenging for voluntary organisations. Many organisations will need to consider all options, from cost cutting, collaboration to merger, to ensure the continuation of their services. This practical tool offers a step by step approach to help them consider their options.”
This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.