18 October 2014

Charities Finance Schemes

Charities FinanceCharities Finance Schemes

In 2014 there are over 20,000 charities in the UK who were generating an individual annual income between £100k and £500k. A further 8,000 charities generated between £500k and £5m income per annum.

The small & mid sized charity sector in the UK is massive and is growing fast.

We all know the names of major charities, these causes can access funding to grow, acquire premises and expand their good work. This ability exists due to various economies of scale and an appetite for major lenders to work with them.

The gap in the finance market exists for those UK charities who turnover under £5m. It is here that traditional charity lenders and banks are more cautious.

Why Is Charity Finance Challenging?

The major issue surrounds the following;

  • Longevity of donations and income
  • Operational management

These are the core issues.

Unlike businesses, there is generally no product, market or an ability to generate future income with certainty. Add into this an additional level of regulation then the risks with lending to charities starts to become clear.

Charity Funding Solutions

At the small and mid level charity sector there are limited funding options. Lenders to this sector need to be specialised and understand the charity sector. However, it takes more than just a lender to put together a successful finance package for charities.

At Lime Consultancy we have partnered with a leading UK charities sector lender, and a charities specialist accountancy firm. This means that when it comes to preparing finance for the charity sector we can cover more bases, and work collaboratively to get the best result for the charity.

Why Use Lime Consultancy?

Charities face many challenges with funding. Many of the challenges are similar to normal profit driven enterprises, however how these funding products are structured is different.

At Lime Consultancy we understand;

  • The decision to commit to commercial funding is not easy
  • That charities operate with a board of trustees, it is essential that how the proposed funding is explained obtains the buy in from the trustees. We understand this, we are also happy to liaise with trustees to explain and answer questions or reservations they have
  • Because we work closely with our charity scheme lenders, we can more easily respond to queries and are happy to get the lender in front of you to provide further assurances
  • It takes time for charities to be certain of doing the right thing, we understand this and will give you the time, resources and support you need to make the right decision

What Next?

Have a look around the commercial funding options, most of these are available to charities even if they sometimes need a little tweaking. For any queries then please contact us on 01293 541333, email info@limeconsultancy.net or use our contact form. We always aim to respond within 24 hours so please provide the best number and time to call you back.

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