Whilst many of the outcomes of Article 50 remain largely unknown, businesses and charities alike are second-guessing what Brexit will mean for their organisation. Add to that the recent announcement of a General Election to be held on 8th June 2017 and it’s clear that the road ahead is anything but clear…
At WRS Insurance we support charities across the UK with their specialist charity insurance requirements, understanding the third sector and it’s uniqueness. Therefore we have taken the time to identify three ways that Brexit may affect charitable organisations and outlined them in our own article to help guide our charitable clients during these turbulent times.
1) EU Funding
Any charitable organisations or community groups that receive EU Funding will no doubt be concerned about what lies ahead. EU Funding currently provides UK charities with around £200million / year. It is important at this stage to clarify your own situation with your funding body as outcomes could vary. It would be wise to financially plan for the worst while you hope for the best. Investigating other income sources to cover any potential losses would be a sensible strategic move for any charitable organisation currently in receipt of EU funding.
2) Pound for Pound
The announcement that the UK was to leave the EU had a catastrophic impact on the value of the pound. For many international charities the affects are still being felt. World Child Cancer, an international charity based in the UK reported a 9 – 13% cut in programme funding because their grants were worth so much less due to the pound being so weak against the dollar.* It is therefore wise to evaluate your organisation’s financial stability, making provision for any future impacts, while we remain in the midst of all this uncertainty.
3) Supply & Demand
It is likely that Brexit will result in an increase in demand for certain charitable services. Organisations that assist migrants, asylum seekers and refugees may find their services in more need during these divided times. They may also be prone to attack or abuse whilst political emotions remain high. There is also a lot of speculation about how Brexit will impact unemployment in the UK, so charities specialising in this field may see a rise in activity too. Be aware and be prepared, with contingency in place where possible.
With so many uncertainties and unknown outcomes, you can at least make steadfast provisions to ensure that your charity is comprehensively insured, protecting you against any unforeseen accidents or incidents. To check if your charity is currently insured correctly and cost effectively, contact us today.