Charities need a legal ‘health-check’ as we settle into the new normal - Helen Kidd

Scotland’s charities are nothing if not innovative. That innovation – coupled with a determination to make a difference – saw the sector emerge from the worst of the coronavirus pandemic in stronger shape than many expected.

Helen Kidd is a Partner in the Charities and Third Sector team at Lindsays

That’s not to say that things have not been challenging. Quick thinking, innovation and difficult decisions have been taken by organisations – many of which have been on the frontline of responding to Covid-19.

In truth, the resilience of the sector has been remarkable. That resilience has supported communities at a time when help was never needed more, kept people from harm and protected jobs.

In order to do that, some have had to adjust how they generate income, diversify activities and alter how decisions are made. As we all now settle into the so-called new normal, charities would be well advised to take the opportunity to reflect and sense-check where they are, what they are doing and where they are going – and in doing so, ensure all of their activities align with their constitution, charitable purposes and strategic objectives.

I appreciate that, to many, this may seem a bureaucratic exercise when the day-to-day is so often taken up by immediate issues. However, many organisations across the third sector are now making plans for the future based upon the consequences of Covid-19 on their work and impact, and with that in mind a legal and governance based ‘health-check’ would be time well spent.

Nobody wants the good achieved during the pandemic to be outdone by having inadvertently walked into a constitutional trap or dilemma. Even if it was done so with the best of intentions.

Organisational evolution which is aimed at leaving a lasting impact may mean that discussions need to take place now about addressing constitutional issues. Considering a governance health check now will mean your organisation will be well armed to act nimbly should they need to do so as we face fresh challenges, such as those posed by the rising costs of living.

Charities cannot afford to overlook the importance of good governance and, where needed, legal advice. It underpins all that charities of every size and type do. Only by having the proper policies and procedures in place, can the dedicated and determined people who make our third sector what it is strive to do all they can with confidence.

That fact that there has not been much evidence of charities being forced to merge or fold over the past two-and-a-half years is something that the sector should be incredibly proud of. It is important, however, that we sense-check the decisions made over that time to ensure they were constitutionally appropriate and take steps to rectify anything requiring action, including those related to alliances forged with other organisations.

Whether through climate change or cost of living, the challenges charities (and society at large) face are not going away. The time for charities to reflect is now, to ensure they are set up to take on those challenges and continue to provide crucial public benefit in this time of flux.

With the key pillars of policies, procedures and people firmly in place, they will be in the best possible position to harness that renowned resilience and innovation in order to tackle whatever lies around the corner.

Helen Kidd is a Partner in the Charities and Third Sector team at Lindsays