Chris
6/17/2025 9:27:17 AM
4 mins read
With Small Charity Week (23rd to 28th June) celebrating the vital frontline efforts of countless small organisations, Ansvar Insurance is highlighting a critical and often overlooked challenge: financial resilience.
While small charities are the backbone of local communities, many can be vulnerable to economic shocks, threatening their long-term impact, services and the people they support.
In Lincolnshire alone, 1,194 registered charities fall under the NCVO’s definition of a small charity (annual income below £1 million). Of these, 79% operate on less than £100,000 per year.
David Eccles, Head of Distribution at Ansvar, a leading insurer for the charity and not-for-profit sectors, commented:
“Small charities are incredibly adept at stretching every pound to deliver maximum impact, but the current economic climate presents a hurdle. While we rightly applaud their dedication, having proactive financial resilience practices in place is crucial. This isn't just about weathering a storm; it's about building a robust foundation to ensure services can continue.”
Beyond traditional fundraising and grant applications, organisations must prioritise strategies to protect their income, safeguard their services and support their dedicated staff and volunteers.
“The 'cost of caring' extends beyond direct operational expenses,” David added. “It includes the costs of unexpected events, such as a sudden drop in donations, unforeseen legal challenges or even a cyber-attack. These can be catastrophic for a small charity operating on tight margins.”
Ansvar is providing three practical steps for small charities to help build financial resilience:
- Revisit risk planning – Identify potential disruptions and how the charity would respond. Build contingency planning into operations, not just governance documents.
- Protect people and assets – Ensure staff, volunteers, service users and property are appropriately covered. Check policies reflect how the charity actually operates today.
- Seek sector-specific advice – General insurance or financial products often don’t account for the nuances of the not-for-profit sector. Speaking to a specialist can help avoid overpaying or under-protecting.
David concluded:
“Small Charity Week gives us the chance to not only celebrate the incredible work of these organisations but also highlight how we can help equip them with the tools and knowledge they need to thrive. By focusing on financial resilience, the work provided by small charities can continue to reach those who need it most, now and in the future.”
https://www.gov.uk/government/organisations/charity-commission
