Organisational health check for small charities, voluntary and community organisations
Overview
- Introduction
- Stage 1: The Health Check
- Governance structure and purpose
- Funding and income generation
- Finances and risk management
- Planning and delivering your services and activities
- Managing volunteers
- Communications
- Collaborations, networks and partnerships
- Stage 2: The Action Plan
Introduction
Do you want to…
- Take an in-depth look at your organisation’s governance?
- Highlight strengths and what you’re doing well?
- Identify any gaps and areas for improvement?
- Make a plan to increase your organisation’s resilience?
This simple self-assessment tool has been designed specifically for small charities, associations, voluntary and community organisations. It has two stages:
Stage One: The health check. You can identify your strengths and weaknesses. If any of the answers in this section are ‘No’ add them to action plan in section 2 for discussion. These are the areas you will need to focus on.
Stage Two: The Action Plan. This will allow you to plan for success. As a board you will be able to prioritise which things you should focus on first and work together for success. You will also be able to access support from your local county voluntary council to assist you with this work.
Stage 1: The Health Check
Management Committee*/board of trustees (Governance)
*We have used the term ‘committee’ throughout this document, but it can be used interchangeably with board of trustees of any charitable organisation. It doesn’t matter which title you use, you have the same responsibility.
Good Governance
Good governance is essential to the success of any charity or voluntary organisation. The following questions will help you to assess how well your organisation is currently governed by its committee/ trustees.
| Does the Committee consist of (at least) a chairperson, secretary and treasurer? | Yes/No |
| Are the majority of your trustees unrelated and residing at separate addresses? | Yes/No |
| Does the Committee understand and follow the rules outlined in the governing document/constitution? (e.g. AGM/appointment of trustees etc) | Yes/No |
| Are all the Committee members aware of their legal duties and responsibilities? | Yes/No |
| Is the Committee aware of relevant laws that the organisation must abide by? (e.g., health and safety, data protection, safeguarding, insurance,) | Yes/No |
| Are meetings held regularly, using an appropriate format (Agendas and minutes) | Yes/No |
| Is the Committee able to manage differing opinions in a constructive and respectful way and do they understand the value of compromise? | Yes/No |
| Does the Committee understand the importance of diversity and the community it serves (for example, includes men and women, people of different ages, ethnicities, backgrounds, identities and lived experiences). Is this considered when recruiting new members? | Yes/No Yes/No |
| Is the work of the Committee shared equally and fairly among the members? | Yes/No |
| Do you have a process to recruit new committee members? | Yes/No |
| Does the Committee have an induction pack and process for new members of the board, which includes: Copy of governing documentAccountsInformation about the organisationInformation about the committee’s roles and responsibilities | Yes/No |
Where to go for help
- Charity Commission, 5 Minute Guides for Trustees
- Charity Commission, The Essential Trustee (CC3)
- Charity Governance Code
Governance structure and purpose
Voluntary organisations have different governance structures. They could be unincorporated, a trust, a Charitable Incorporated Organisation (CIO) a Company limited by guarantee or a Community Interest Company (CIC). It is important that everyone involved within the voluntary organisation understands its legal structure and that the organisation acts within the aims and purposes written in its governing document.
| Does everyone within your organisation know its governance structure? | Yes/No |
| Does your organisation have an up-to-date relevant governing document that is appropriate for its legal structure? | Yes/No |
| Does your organisation have a clearly defined purpose? | Yes/No |
| Is everyone on the committee aware of the organisation’s aims? | Yes/No |
| Is there a written record of the history of the organisation? | Yes/No |
| Are you aware that if your organisation has an income of over £5,000 per annum you may need to register with the Charity Commission? | Yes/No |
| Is everyone on the committee aware of the geographical area that your organisation can work in? | Yes/No |
| If you are a registered charity does the constitution on the Charity Commission website match that you are working towards? | Yes/No |
Where to go for help
Introduction to Voluntary Sector legal structures and charitable status
- Charity Commission, How to choose a charity structure
- Office of the regulator of community interest companies
Funding and income generation
Voluntary organisations must aim to ensure that they have sustainable sources of income to deliver their activities and put in place ongoing plans for developing appropriate and varied income streams.
| Can the Committee identify the organisation’s primary sources of income? | Yes/No |
| Does the organisation fundraise in line with its governing document? It is good practice to ensure fundraising activities are compliant with the Code of Fundraising Practice and other applicable legislation (e.g. Gambling Act 2005/Local authority licensing)? | Yes/No |
| Is the organisation registered for Gift Aid (if eligible) and do you have the processes in place to make a gift aid claim? | Yes/No |
| Does your organisation collect information regularly, to help with future funding applications? (This could include: case studies, feedback from beneficiaries, evidence of impact, monitoring and evaluation) | Yes/No |
Where to go for help
Income Generation Health Check
A more in depth income generation health check can be found here.
- Fundraising Regulator and Code of Fundraising Practice
- Charity Commission, Charity Fundraising, a guide to trustee responsibilities (CC20)
- Chartered Institute of Fundraising
- Fundraising Everywhere
Finances and risk management
Financial controls are important for all voluntary organisations. They are essential checks and procedures that help you to protect your charity’s assets, identify and manage risks, and make informed decisions about your charity’s financial position. You should also ensure that you have a robust approach to identifying and managing risks to your organisation.
| Does the organisation have bank account in its own name, which requires two unrelated signatories? | Yes/No |
| Does the organisation have a clear process in place to manage its finances? | Yes/No |
| Is there at least one named individual within the organisation with suitable skills and experience to manage the organisation’s finances? | Yes/No |
| Are financial records showing the income and expenditure kept and recorded? Are they regularly shown to the committee at meetings? | Yes/No |
| Do you have any assets (e.g., land, buildings, vehicles)? If you do, then seek guidance from Third Sector Support Wales. | Yes/No/Not applicable |
| Do you have any rental/lease agreements? If so, do you know the terms and conditions of the agreement? Seek guidance from Third Sector Support Wales. | Yes/No/Not applicable |
| Are you aware of the potential tax implications for your organisation? If you need help with this please contact TSSW. | Yes/No |
Where to go for help
- Charity Commission, Internal Financial Controls for Charities (CC8)
- Charity Commission, Charity Reserves, Building Resilience (CC19)
- Charity Finance Group
Planning and delivering your services and activities
As an organisation, planning for the future is essential. Successful planning will help you to make effective use of your organisation’s funds, ensuring all the work completed is in line with your governing document. Planning will also allow you to ensure that the work being delivered complies with guidelines associate to Data Protection, Safeguarding etc and will enable you to reduce risk and protect the organisation.
| Have you ensured that the activities and services that your organisation delivers are in line with your governing document? | Yes/No |
| Is the beneficiary group (the people you help) clearly defined and identified? | Yes/No |
| Are services and activities you deliver open and accessible to your target beneficiaries? | Yes/No |
| Have you produced a plan for the current year which details the activities and services to be delivered? | Yes/No |
| Do you monitor and evaluate the effectiveness of the activities and services which have been delivered? | Yes/No |
| Do you use the results of the monitoring and evaluation you completed to enhance your work in the future? | Yes/No |
| Are your services and activities carried out in a safe environment? | Yes/No |
| Does your organisation comply with GDPR (General Data Protection Regulations)? | Yes/No |
| Does your organisation have a data protection policy and keep all personal data secure? | Yes/No Yes/No |
| Does the organisation have appropriate insurance? This may include: Employers’ liability insurance Personal Indemnity Public Liability Buildings insurance Contents insurance Trustee indemnity insurance Vehicle insurance Events insurance Fundraising insurance | Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No |
| Does your organisation have a safeguarding policy which covers children and/or adults at risk? | Yes/No |
| Does your organisation have a named person for safeguarding who people can contact if they have any concerns? | Yes/No |
| Does the organisation have an Equality and Diversity Policy? | Yes/No |
| Are staff and trustees given the opportunity to complete EDI training? (contact TSSW) | Yes/No |
| Does the organisation strive to have a diverse board? (Contact TSSW) | Yes/No |
| Does the organisation make an effort to offer services and activities through the medium of Welsh? | Yes/No |
| When you receive funding, you will be given a contract. As part of that you will need to ensure that your organisation is completing what it said it would. Is this something you are doing? | Yes/No |
| Does your organisation ask your service users/beneficiaries for feedback on the work of the organisation? | Yes/No |
Managing volunteers
Volunteers are often the lifeblood of a charitable organisation, enabling the delivery of a wide range of services through the giving of their time and skills. Recruiting the right volunteers, and keeping them motivated to stay at your organisation will help you to achieve your mission.
| Does your organisation have a process in place for recruiting volunteers according to their skills and experience? | Yes/No |
| Is there a volunteering policy in place? | Yes/No |
| Does the organisation have a volunteer code of conduct? | Yes/No |
| Do volunteers have clear, defined role descriptions? | Yes/No |
| Have any volunteer roles that are eligible for DBS checks been identified and is this made clear on the role description and in the advert? | Yes/No |
| Are DBS checks carried out (for any eligible roles were there will be contact with children and/or adults at risk in the course of the volunteering)? | Yes/No |
| Do volunteers receive support and guidance? (e.g., induction, volunteer handbook, supervision?) | Yes/No |
| Does each volunteer have a named person within the organisation for support and guidance? | Yes/No |
| Are the organisation’s volunteers paid expenses? | Yes/No |
| Does the organisation’s insurance cover volunteers? | Yes/No |
| Have all other legal issues relating to volunteers been considered? | Yes/No |
| Are volunteers given appropriate recognition for their contributions? | Yes/No |
| Are volunteers encouraged to give feedback on their experience, and asked what could be done to improve their volunteering? | Yes/No |
| Is there a clear and fair process For terminating the volunteering relationship if necessary? | Yes/No |
Where to go for help
Communications
Good communication will have a positive impact across your organisation. Being able to communicate the impact of your organisation to funders, potential members and other people your organisation engages with will aid your ability to raise money, recruit volunteers, attract new beneficiaries and build relationships with other organisations who you may wish to work with in the future.
| Does your organisation ensure that clear communication is given between the committee, group members and the community? | Yes/No |
| Do you carry out regular community consultation to ascertain your communities needs? | Yes/No |
| Does your organisation publicise its activities? | Yes/No |
| Does the organisation use different forms of communication for different groups you engage with? (e.g. the community, funders etc) | Yes/No |
| Does your organisation have a social media and communication policy? | Yes/No |
Where to go for help
- Charity Commission, Charities and Social Media
- Charity Comms
Collaborations, networks and partnerships
Collaborations and partnerships can help you and other organisations to make the best use of your resources and maximise the impact of your services. Whether you cross-refer to each other’s services, complete joint funding applications, share resources or pool volunteers, working together can have a positive impact for you and your beneficiaries.
| Does your organisation have links with other relevant organisations at a local, regional and national level? | Yes/No |
| Are beneficiaries sign-posted to other organisations, where appropriate? | Yes/No |
| Is your organisation linked in with relevant support and infrastructure organisations? (e.g., CVC, WCVA, umbrella/membership body for your sector) | Yes/No |
| Does your organisation share best practice with other organisations? | Yes/No |
| If your organisation works in partnership with others, are partnership agreements in place? | Yes/No |
| Does your organisation ensure that it avoids duplicating activity already happening in its area of operation? | Yes/No |
Where to go for help
Stage 2: The Action Plan
Now you have completed Stage 1, it is time to make your action plan.
In the table below:
- Place any areas to which you answered no to in Stage 1 in column 1
- In column 2 state what actions you and the board are going to complete to ensure this area improves.
- In column 3 put a date of completion for your actions to be achieved by. Make sure that this date is achievable.
If you need help with any of the sections your local County Voluntary Council will be able to help you.
| Stage 2: Action Plan | ||
| Areas you answered no to | What actions you need for improvement | Expected date of completion |
