The internal culture of a charity can directly improve its bottom line and its performance making it more sustainable and able to weather storms, the chief executive of a £7 million turnover music education and training charity, will tell finance specialists.

However, encouraging and developing the “right kind” of culture in voluntary and third-sector organisations challenges even the most experienced charity and business leaders.

Sharon Bell, Chief Executive of Services For Education – which was created in 2012 and whose activities were originally delivered as part of Birmingham City Council – will tell delegates at the Charity Finance Group’s Annual Conference (CFG) in London (June 26), that there are real benefits in creating a culture that values both financial resilience and long-term impact.

“Maintaining financial control whilst delivering activities and positive outcomes can be demanding in any organisation but in charities it is even more challenging in part because of the ethos of those who choose to work and support the charitable sector,” said Sharon.

“In an ideal world, everyone delivering the charity’s services will be aware of the impact of their work on financial control, both to the bottom line and the long-term financial sustainability of the charity. But employees and volunteers are often solely focused on delivery without understanding or necessarily appreciating the impact of their decisions on finance or sustainability.

“This has become an increasing issue at present as many charities are facing increased national insurance costs, pay pressures and rising operational costs whilst having to cope with a fall in public donations and at best, flat funding.”

Sharon believes many charities do not share financial information fearing that to do so will distract their teams from delivery.

“We can see that transparency around all aspects of the organisation, including its finances, increases morale and reduces turnover.

“However, there is a tendency for charities to only discuss finance when there are issues such as shortfalls in revenue. I believe that if staff are to understand the impact of their actions on the bottom line, they need to be made aware of the broad state of the finances and the environment in which they operate. This needs to be done on a regular and frequent basis, as a matter of course, and not solely at times of crisis or by simply circulating an annual report.”

Sharon warns though that whilst there should be a focus on finance and sustainability, charities should never lose sight of what they deliver and their impact.

“Putting finance at the heart of an organisation increases impact and resilience, but all of us in charities and third-sector organisations must remain focused on our core-purpose. That should continue to be what drives us,” she said.

Sharon will pose a series of challenges to delegates at the CFG Conference – the UK’s largest in-person charity finance conference – including asking them to estimate the proportion of staff and volunteers who would understand how their charity is funded, and how financially literate senior colleagues are on a scale of one to five.

“Studies have shown that when staff understand where the money comes from and where it goes to, they tend to be more accountable for their use of resources and less likely to make wasteful or misaligned decisions,” said Sharon.

“Many charities demonstrated this during the pandemic when it became a necessity to shift resources and operate differently. Our staff rose to the challenge researching different opportunities, additional funding streams and accelerating different means of delivery.

“But you don’t need a pandemic to deliver such change – just a concerted effort and greater understanding,” she said.

Services For Education, an award-winning charity based in Birmingham, employs more than 200 staff delivering music tuition to children, and expert training and development to teaching and school support staff. It aims to bring music and learning to life.

More than 650 charity staff are expected to attend the CFG Annual Conference including finance directors, CEOs and finance managers as well as treasurer, trustees and consultants, representing both large and small charities from across the UK.

ENDS

For further information:
Public and media relations for Services For Education:
David Clarke
E: david-c@clarke-associates.co.uk;
M: 07808 735255

Sharon Bell, Chief Executive of Services For Education

About Services For Education: An education and training charity based in Birmingham, Services For Education brings music and learning to life. Services For Education employs more than 200 staff delivering music tuition to children, and expert training and development to teaching and school support staff. It has annual income of £7.1m 2023/2024). Part-funded by the Arts Council, England it also has its own fundraising and subsidised commercial operations.

• Services For Education’s School Support Service provides expert training and development to teaching and support staff in nearly 600 schools in the West Midlands and increasingly across England, to improve practice and ensure teachers are best equipped to respond to developments in curriculum and policy. As a leading provider of safeguarding education, Services For Education works with 400 schools delivering training in-person and on-line. It also delivers innovative programmes to support the physical and emotional health of children and young people through Health for Life and other community-based activity.
• Services For Education’s Music Service, one of the largest in the country, works with 98% of Birmingham schools and each year teaches music to nearly 32,000 children – as well as running 113 free ensembles. It provides 27,000 musical instruments free-of-charge so all children have access to playing and enjoying music together and its Youth Proms at Symphony Hall give 4,000 young musicians the opportunity to perform to an audience of more than 10,000. It also runs music schools, has a world music department, provides private music tuition to all ages as well as working with partners to deliver music and choral opportunities to disadvantaged and vulnerable groups. Its award-winning Online Music Educational Resource was completed and launched free to schools in 2021 to appeal to a young IT-connected audience attracted to learning online and to complement traditional tuition.

www.servicesforeducation.co.uk

Issued on behalf of:

Services For Education
Unit 3 Holt Court
Holt Street
Birmingham Science Park
Aston
Birmingham B7 4AX