1. The Helplines Association Planning for change 6 April 2011

3. Specialist in turnaround and restructuring for charities and other not-for-profit entities

4. Worked with wide range of charities and social enterprises, typically small to mid-sized charities experiencing some sort of financial difficulty

5. Part of the PwC Charities Team

8. Charities need to respond

9. There are both risks and opportunities

10. Planning and information are crucial

11. The success of the organisation may depend upon asking the tough questions nowSlide 4 Charities must embrace the need for leadership – how can you influence this?

12. Slide 5 Wordle on Big Society from NCVO The changing environment

13. The importance of planningRisk touches every part of your organisation Risk assessment processes Operational Governance Reputational and external Environmental Financial (Charity Commission CC26 – Risk Management) Slide 6 More than ever before risk needs to be properly addressed

14. Charity Commission publicationsCC26 – Charities and Risk Management Slide 7 What is your risk appetite?

15. The importance of planningWhy do charities fail? Slide 8 Predictable income flows Need to track trends in income Most comfortable model Flexible cost base Fixed cost commitments Most vulnerable position Need to understand reserves policy Unreliable income

16. The importance of planningWhy do charities fail? Slide 9 Predictable income flows Need to track trends in income Most comfortable model Actually, it is almost invariably.. ..weak planning and financial management Flexible cost base Fixed cost commitments Most vulnerable position Need to understand reserves policy Unreliable income

17. The importance of planning Slide 10 Strategy Scenario planning/risk assessment Managementinformation Governance Reserves policy

18. The importance of planning Slide 11 Strategy Scenario planning/risk assessment Managementinformation Governance Reserves policy Important when things are going well – VITAL in a downturn

19. Responding to change Slide 12 Sigmoid CurveFrom Charles Handy “The Empty Raincoat” It’s hard to make change when things look on the up Growth / performance It’s much easier from a burning platform Time

20. Responding to change – what are the options? Slide 13 Plan A Diversify income Assess Risks Plan B Streamline Plan C Focus on core Evaluate Opportunities Plan D Collaborate->close Consider all possibilities to benefit your beneficiaries

21. Responding to change – assessing the options Slide 14 Time is critical – how long does your charity have? Diversify income Streamline Availability of options Focus on core Collaborate Merge Close Time Milestones

22. Responding to change – assessing the options Slide 15 What are your charity’s core activities? Additional activity 2 etc Discretionary costs Additional activity 1 “Semi-fixed” costs Core activities Fixed overhead

24. The desire of one or more individuals to create a lasting legacy

25. To be more responsive to the needs of a local community

27. When you cannot take advantage of opportunities

28. When survival becomes your sole occupation

29. When you are less attractive to funders

30. If your Trustees are in it solely for egotistical reasons

31. If your strategy is influenced by your key Senior Managers’ fear for their future or that of their employeesSlide 16

32. Approaching the question with an open mind Understanding the true cost of activities and overheads Researching the market for potential partners Benchmarking against other charities Reviewing all areas of their costs Making the best use of professional advice Challenging the status quo and being strategic What should Trustees and Senior Managers be doing? Be prepared to have open conversations

34. What responses are open to helplines looking to secure their future?

35. How can you influence your helpline’s future?

36. What other types of organisation might your helpline collaborate or merge with?

37. We will then feed back and discuss as a groupSlide 18

39. Charities need to respond

40. There are both risks and opportunities

41. Planning and information are crucial

42. The success of the organisation may depend upon asking the tough questions nowSlide 19 Charities must embrace the need for leadership – how can you influence this?

43. Contact Ian Oakley-Smith, Director, PwC T - 0207 212 6023 E - ian.oakley-smith@uk.pwc.com Slide 20

44. Thank You