Professional Services

Charities have been hit hard by the pandemic. In some cases, income has been decimated with reductions in donations, grants and the all-important gala dinner. In addition, the operational side of the business has been hit hard with many staff put on furlough or being made redundant.

Certain types of charities have been hit the most. The arts in particular have been badly hit as there are currently no live performances, and as social distancing restrictions are lifted, there are likely to be continued restrictions on capacity in venues and for functions.

However, it is important to bear in mind that many charities are also corporate entities that are monitored by the charity commission and have reporting requirements and legal responsibilities. The trustees (and the CEO) may well be directors and therefore have legal duties if they have any doubt as to the solvency of the entity.