One of the great privileges of my work is supporting a range of organisations in the UK’s charitable and community sector. All of them have leaders who frequently describe their roles as “a balancing act”. This is because they have to manage a delicate balance between internal management and leadership by paid staff AND their Trustees. They also have to do this while ensuring their charity presents itself strongly in a difficult financial market AND managing how their charity shows up in the local community. This balancing act is essential for ensuring the charities’ sustainability (in all senses), credibility, and impact.
Running the Charity: Internal Management
Effective leadership within the charity sector starts with strong internal management. This involves effective and savvy strategic planning, sound financial management, and efficient operations. Leaders must ensure that the charity’s mission and goals are clear and that all activities align with these objectives. They must also bring paid staff AND volunteers along with them on the journey. When this journey features a big change of direction (or a big change in how the charity is run) this can be a tricky task for the leadership.
Add into that, that many charity leaders are “accidentals”. By this I mean that they took a senior job in a charity because they believed passionately in the purpose. The trouble is, they may not have had the management and leadership training to equip them with all the necessary skills to do the job. Often, the very different nature of charity strategic operations means it attracts people unhappy with (or unsuited to) the corporate world. Charity leaders are a varied lot, but always resourceful and pioneers of “agile” leadership way before it became on-trend. Survival instincts do that to you.
Trustee Behaviour and Responsibilities
Good governance is vital to effective charity operations. It is also a key feature of leadership. Trustees play a crucial role in the leadership of charities. They are responsible for effective governance, which includes ensuring compliance with legal and regulatory requirements, safeguarding the charity’s assets, and setting the strategic direction. This is all set out in the Charity Governance Code and yet is something very few charity trustees and paid leaders appear to know about.
Trustees are often people who have held senior roles in a long working life and are now “giving back” in retirement. For most this means doing good in a way that helps their local community. For most this also means doing good, well. However, for a slim minority, being a Trustee is a badge of office, an instrument of power to use as a bludgeon rather than a ladder to help up others. Sadly, I have encountered some autocratic bullies in local charities. Such people tend to run their organisations as their own personal fiefdom, to pursue theor own personal agenda. That is toxic and has nothing to do with effective leadership. Effective trustees are engaged and knowledgeable leaders, acting with integrity.
Presenting the Charity to the World
How a charity presents itself in the marketplace is vital for attracting donors and volunteers at both the operational and strategic levels (Trustees are volunteers who run a charity). A charity’s market positioning is also key to ensuring it targets, reaches and attracts its beneficiaries. These are the people that the charity has been set up to help and they have to be defined in governance documentation and registered with the Charity Commission in the UK.
It is impossible to have strong and effective market positioning and branding without effective leadership within the charity. Effective marketing involves creating a strong brand identity, clear messaging, and a compelling value proposition. Good luck having that in an organisation that lacks a vision, a clearly communicated sense of shared purpose, and an effective operating model that maximises the impact fundraising can have.
Demonstrating Leadership in the Community: Impact and Engagement
Next in this list of leadership obligations that charity leaders have to juggle and, hopefully, balance, is leadership within the local community. This may involve engaging with community members, whether beneficiaries of the charity or not. It may also involve understanding the community’s varying needs. It is almost certainly going to involve delivering services that have a lasting impact in the community that the charity aims to serve.
There is another angle to this. There are many local and national charities which are advocates for change. On the one hand, leadders might push for change, demonstrating leadership in their own field. On the other, it might be by collaborating with others to increase their impact and effect. The recent marches in London in support of nature, prior to the UK General Election, were an example of this. Many national and global charities came together to remind politicians that wildlife and the natural world need a voice at future political tables. It was a powerful message.
The Balancing Act in action
Charity leaders are looking to the future more than ever before. Not only is this a reflection of the scarcity of money available to them, through reduced public sector spending and a cost of living crisis, but it is also a reflection of the increased reliance we all have on digital tools. Online fundraising, virtual events and the widespread use of Artificial Intelligence to improve donor experience when giving hard-earned cash, are here to stay.
I am pleased to report that charity leaders are also pooling their meagre resources more and better. Small is no longer beautiful, because it splinters the pot available to charities. More charities are seeing the solution to complex issues to be shared, not a solo challenge.
Impact measurement is also something that charities are looking to do. I always advocate the use of Generic Social Outcomes, as I have noted in another blog on this site. However, there are others, such as the sustainability impact indicators associated with BCorp status. It is vital that donors can see their money making a clear difference.
Leaders in the voluntary and community space have a tough job. We rely on them doing that well, every day. We don’t realise how much we rely on them, I suspect. So the next time you think about a local charity as they fundraise and ask for support, please consider helping out. You never know where it might take your leadership journey!
If you would like to explore how I can help your charity with its leadership development, I would be delighted to have a chat. Please book a complimentary strategic conversation and let’s get you started.