Remaining Financially Agile Within the Voluntary Sector

Charities are used to change. They grow, they shrink and sometimes they do both in the space of a year. At a recent Charity Recruit event, Claire Reynolds, an expert financial director with 15 years of experience guiding charities through rapid growth and contraction, spoke openly about remaining financially agile when the ground keeps shifting.

She reminded us that growth can be just as tricky as contraction.

“You’d think rapid growth and income coming in would be a good thing, but actually it can be really challenging and unsustainable for an organisation.”

That honesty set the tone. This wasn’t about theory. It was about lived experience, the kind that comes from steering organisations through both expansion and crisis.

The reality charities face

Charities rarely stand still. External shocks like government changes, economic downturns or even a storyline on EastEnders can suddenly alter demand. Internally, well-meaning projects can overstretch resources. Claire described how the pandemic amplified this unpredictability.

“It can almost feel like you wake up one morning and the goalposts have totally moved.”

That sense of instability is now part of the sector’s daily life.

Practical ways to stay financially agile

Here are some of the practices Claire highlighted. They may not be glamorous, but they are the foundations that keep organisations steady:

• Cash flow planning

Daily checks and forward projections help spot problems before they hit.

• Scenario planning

Work with three versions: likely, worst, and best case. Focus on the big risks.

• Risk reviews

Keep registers short and useful. Share them with staff and trustees so risks aren’t hidden.

• Reserves

A cushion of reserves gives breathing space when shocks arrive.

• Flexible staffing

Short-term contracts or multi-skilled roles help organisations adapt quickly.

• Supplier conversations

Talking early to suppliers can ease cash flow and spread costs.

• Peer and donor support

Sharing challenges with funders and peers prevents isolation and opens up solutions.

Keeping the mission in sight

Remaining financial agile isn’t just about balancing spreadsheets. It’s about the way an organisation holds onto its culture, how it communicates, and whether it stays true to its purpose. Claire made the point clearly: chasing money at the expense of values is a dangerous path. Beneficiaries have to remain at the centre of every decision, otherwise the charity risks losing sight of why it exists in the first place.

She also spoke about the importance of openness. Leaders don’t always have the freedom to share every detail but making yourself available and being honest about what can and can’t be said builds trust. That kind of transparency, combined with a steady focus on beneficiaries, helps organisations weather difficult times without losing their identity.

In summary

There isn’t a single fix for financial agility. It comes from layering practical steps, building cushions where you can and keeping the mission front and centre. Charities that approach uncertainty in this way stand a far better chance of surviving the rough patches and continuing to serve the people who rely on them.