Sector Focus: Managing your finances in challenging times
Many arts and cultural charities are facing incredibly challenging financial circumstances. Increased utility costs, high inflation, real-term cuts to Arts Council England (ACE) funding and a difficult recruitment market are all combining to create a harsh economic environment.
Many arts and culture organisations operate with limited reserves and are reliant on fundraising income to support their charitable activities each year; however, the cost-of-living crisis is also creating increased uncertainty and competition for donations and grants. Sadly, there are already charities who have been forced to cease operating as a result of these challenges. It is important to take action swiftly at the first signs of financial difficulties, and in this article I set out some of the key areas that trustees and management should consider on a regular basis.