Introduction to Small Charity Finance

Finance doesn’t have to be a mystery. In fact, we have just three jobs:

• Getting on top of the recording so that we know what the numbers are
• Getting on top of the reporting so that we know what the numbers mean, and
• Getting on top of the financial decision making to lead with financial confidence

In the content below, we introduce the finance cycle and how to record and report financial information for purposeful, resilient financial decision making. The exact nature of what we need differs from small charity to small charity but most will need at least a version of the following:

• A finance cycle so that we know what the numbers are
• A monthly finance pack so that we can understand what the numbers mean
• A finance plan so that we can use the numbers to help us decide what to do

In our experience, those charities that manage the finances best in their small charity - and in doing so really build their financial resilience - get on top of and stay on top of the numbers. They set aside - and stick to - one to two days per month. Half looking backwards, half looking forwards. We know this can be tricky. Things get in the way. Whatever it is that gets in the way for you, never let one spreadsheet stop you changing the world. Enjoy!