Financial management during COVID-19
Gurbinder Singh, Director of Leicester-based accountants BGS Accounting, provides guidance for local charities and community groups on how to manage their finances during COVID-19.
Six tips for financial management
1) Check state aid eligibility and ensure that you have applied for all the possible help that is available to you. This can range from the following:
a. Furloughing Staff
b. Small Business Grants
c. Charitable Rates relief
2) Check to see if you can tap into any Emergency Funding support available:
a. Charities Aid Foundation – £10k grant for small charities that are struggling to survive
b. Halifax Foundation Northern Ireland
c. The National Lottery Community Fund
d. The National Lottery Heritage Fund – Establishment of a £50 emergency fund to support heritage projects in crisis. You can apply for grants of between £3,000 and £50,000
e. Any other locally available funding
3) Do a cash flow forecast to see if you need to use your cash reserves
4) Make sure the use of any restricted funds is only spent on a defined purpose. It may be possible, in some circumstances to amend the restrictions, however this should only be considered if other options are not available.
5) If you are VAT registered, ensure you have cancelled your direct debit for VAT payments, as you can defer these until next year.
6) Look at planning a donation drive to get you through this tough time.
Support to get to the other side of the pandemic
Gurbinder has also provided a guide to financial management on the other side of COVID-19.
You can find out more about BGS Accounting on their website.
Get support from VAL
If you are a charity or community group and you need additional support to deliver services during the pandemic, VAL is here to help.
We can offer advice on issues that affect charities, from fundraising to proper governance and managing volunteers.
You get can in touch via:
helpline@valonline.org.uk
0116 257 5050