Effective financial management is critical for charities that want to survive and thrive
Charities need to have robust financial management, policies and procedures running through their organisations if they want to plan for the future effectively and flourish.
That’s the view of Anne Davis, head of charity and voluntary sector at the ICAEW (Institute of Chartered Accountants in England and Wales).
Interviewed in the Guardian this week, Anne argues that effective financial management is not just about balancing the books. It also covers planning, forecasting and organising.
All of which, she says, “help charities large and small meet their objectives and use their resources effectively and efficiently.”
In the interview, Anne explains how a balanced scorecard - a performance measurement system developed in the early nineties - can help charities plan, organise, monitor and measure.
Says Anne: The balanced scorecard tool is a crucial lynch pin in the battle for survival. Well-managed charities that monitor progress towards their strategy and objectives are more likely to survive recession than poorly managed charities.”
You can read the full interview with Anne Davis here.