Across the UK charity sector the conversation is changing

For years, trustee boards focused primarily on funding, compliance and operational oversight. Those things still matter, but the environment charities are now operating in a far more complex, volatile and demanding environment.

The most pressing issue facing many charity leaders in 2026 is organisational resilience.

Not simply “can we balance the budget?” but whether organisations can remain financially sustainable, trusted, digitally competent, well governed and critically mission-focused at the same time.

Leaders are trying to navigate rising demand for services alongside increasing costs and growing workforce and donor fatigue. At the same time, organisations are grappling with digital transformation, AI and cybersecurity risks, reputational pressures and greater public scrutiny. What is striking is that these are no longer isolated challenges. They are converging.

For trustees, this means governance discussions need to evolve too.

Boards should now be spending meaningful time discussing long-term financial sustainability and whether their current operating models are genuinely viable. They should be thinking carefully about organisational culture, staff wellbeing, leadership succession and whether expectations placed upon teams remain realistic. Increasingly, trustees also need to understand the implications of AI, data protection, cybersecurity and digital governance, rather than treating them as purely operational matters.

Alongside this sits the growing importance of reputation and public trust. Many charities are operating in an environment where public criticism, misinformation and political polarisation can rapidly affect confidence and stakeholder relationships. Governance structures themselves also need scrutiny, with boards asking whether they remain fit for purpose in a changing world.

In many organisations, the greatest risk is no longer lack of commitment or passion.

It is governance inertia.

The strongest boards I see are strategically curious, willing to ask difficult questions early, focused on resilience rather than optimism alone and able to create space for proper discussion instead of simply reviewing papers.

Perhaps the most important question trustees should now be asking is:

“What must this organisation become in order to remain effective and trusted in a very different operating environment?”

That is where modern governance conversations need to begin.

Fractional Leadership

What does the situation in Iran mean for UK charities?

It’s a question I’ve been asked a few times over the past few days.

On the surface, it can feel distant, another geopolitical crisis unfolding elsewhere. However, for charities here in the UK, the implications are closer to home than they might first appear. Rising tensions are already feeding into energy prices, inflation expectations, and market uncertainty. That, in turn, affects the financial resilience of the organisations we lead.

For many charities, this is less about reacting to the crisis itself and more about quietly reassessing financial foundations. Cash reserves that felt prudent a year ago may now be losing value in real terms. Investment portfolios may be experiencing short-term volatility. At the same time, the cost of delivering services is likely to edge upwards, just as demand for support often increases.

In this kind of environment, the role of trustees becomes even more important. Not to predict the markets, but to hold steady. To avoid reacting to headlines, and instead stay anchored in long-term strategy. Good governance is rarely about dramatic decisions, it’s about calm, disciplined oversight when the world feels uncertain.

What I’m encouraging boards to do right now is to pause and reflect. Are reserves positioned in a way that protects their value? Is there enough liquidity if income dips or costs rise unexpectedly? Perhaps most importantly, are decisions being driven by strategy and purpose or by the noise of the moment?

These are not easy questions, but they are the right ones.

Across the charities I’m working with, I’m seeing thoughtful conversations emerging, boards leaning into their responsibilities, asking better questions, and focusing on resilience rather than reaction.

If that’s a conversation your board is starting to have, you’re not alone.

When Collaboration Isn’t Enough: Why More Charities Should Consider Merger

Something notable is happening quietly across the UK charity sector.

Between May 2024 and April 2025, 94 charity mergers involving 183 organisations were recorded. According to the Good Merger Index produced by Eastside People, that represents a 49% increase on the previous year. Much of this activity is among smaller charities with incomes below £1 million, many of whom are choosing to combine in order to create stronger, more sustainable organisations.

The drivers are not difficult to understand. Costs have risen sharply, funding is more competitive, and demand for services continues to grow. The Index reports that more than half of the smaller charities entering mergers were already operating at a deficit. For many boards, the question is no longer whether the environment is difficult, but how best to protect the mission in the face of those pressures.

Yet mergers in the charity sector are still too often viewed as a last resort — something that happens when an organisation has somehow failed. In reality, they can be one of the most effective ways to strengthen impact. When approached strategically, merging organisations can reduce duplication, strengthen fundraising capacity, improve operational resilience and ultimately direct more resources toward beneficiaries rather than infrastructure.

Despite the recent rise in activity, mergers remain rare. With more than 171,000 registered charities in the UK, fewer than one hundred mergers in a year barely registers across the sector. This suggests that many organisations with similar missions, overlapping geography or shared beneficiaries may still be operating separately when greater impact might be achieved together.
For trustees, whose legal duty is to act in the best interests of their charity and its beneficiaries, this raises an important strategic question: are we protecting the organisation, or the cause?

These are not easy conversations. Charities are built by passionate people who care deeply about their work and identity. But leadership sometimes requires stepping back and asking whether the structure itself is helping or hindering the mission.

In a challenging financial environment, the organisations that will thrive are those willing to think boldly about how they deliver their purpose. Sometimes that will mean collaboration. And sometimes, the most responsible decision may be to combine strengths and pursue the mission together rather than apart.

Not Power, But Responsibility

Leadership is not a throne,
Nor rule by right or voice alone.
It’s not the grip of tight control,
But guiding with a steadier soul.

It shows in how we take the strain,
In owning loss as much as gain.
In lifting others, hand by hand,
And helping those we lead to stand.

It’s found in trust, not fear or might,
In doing what we know is right.
Not seeking praise or needing fame,
But standing true in storm and flame.

A leader’s strength is service deep,
A vow to guard, inspire, and keep.
To walk ahead, but turn and see—
That growth and grace come shared and free.

So measure not by voice or crown,
But who you raise, not who kneels down.
For leadership, in its truest form,
Is quiet care amidst the storm.

Introducing the Charity Support Network

Empowering Small Charities to Thrive

We’re thrilled to launch the Charity Support Network, a tailored resource designed specifically to empower small charities to achieve more significant impact. This innovative program combines expert guidance, hands-on support, and a network of like-minded peers to help your charity not just survive, but truly thrive.

Through year-round access to specialised workshops, direct expert advice, and a collaborative community, the Charity Support Network equips you with the tools, knowledge, and connections you need to advance your mission and make a lasting difference.

Find out more.

Encouraging staff to return to the office

After two years of Covid and another two years on many businesses, charities included, are still facing challenges in encouraging staff to return to the office. With remote work becoming a new norm, leaders need to adopt thoughtful strategies to make the transition back to in-person work appealing and beneficial for their teams.

One effective approach is to communicate the value of in-office work clearly. Articulating the benefits of in-person collaboration—such as enhanced teamwork, spontaneous idea generation, and stronger relationships—can help staff understand why returning to the office is important. For example, the British Red Cross emphasised the significance of physical presence for rapid response planning. They discovered that being together in the same space allowed for quicker decision-making and fostered stronger team cohesion during crisis situations. As Mike Adamson, CEO of the British Red Cross, put it, “There’s a certain magic that happens when people are in the same room together. It’s about building relationships that are harder to foster over a screen.”

Creating a supportive work environment is another key strategy. Many charities have found success by implementing hybrid models that balance office days with remote work. Providing support for well-being is also crucial, addressing concerns like commuting and work-life balance. The National Trust, for instance, offered flexible working arrangements that allowed staff to choose a mix of office and remote days. This flexibility was particularly appreciated by those with long commutes or caregiving responsibilities. Hilary McGrady, Director-General of the National Trust, noted, “We recognise the need for flexibility in how and where we work, and we’re committed to supporting our staff in finding the right balance.”

Enhancing the office experience itself can also encourage staff to return. Making the office an attractive and comfortable place to work, with spaces designed for collaboration, quiet work, and socialising, can make a significant difference. Macmillan Cancer Support, for example, renovated their office spaces to include modern, comfortable furniture and collaborative work areas. They also introduced “Wellness Wednesdays,” where staff could enjoy free yoga sessions, massages, and healthy snacks.

Leading by example is another powerful tactic. When leaders regularly work from the office, it shows their commitment to the workplace culture and can inspire others to do the same. At Save the Children UK, senior leadership made a point of being in the office frequently, hosting informal coffee mornings and “Lunch with Leadership” sessions to stay connected with the team.

Fostering a collaborative culture is also essential. Organising activities that require in-person collaboration, such as workshops, brainstorming sessions, or team-building events, can make office presence more meaningful. Oxfam UK, for instance, organised “Innovation Days,” where teams from different departments came together to brainstorm and develop new ideas for fundraising and outreach. These in-person sessions often led to more creative and impactful initiatives.

Engaging staff in the decision-making process about returning to the office is another effective strategy. By involving staff in conversations and understanding their concerns and preferences, leaders can shape policies that reflect the diverse needs of their workforce. Barnardo’s, for example, held a series of workshops and surveys to involve staff in these decisions, ensuring that the policies were inclusive and well-received.

Offering development opportunities that are best delivered in person can also encourage staff to return to the office. The Royal British Legion launched an in-person leadership development program that included workshops, mentoring, and networking opportunities, available only to those who attended the sessions in person. Charles Byrne, now Director General of the English Speaking Union, emphasised, “Being in the office allows us to provide hands-on support and real-time feedback, which is invaluable for personal and professional growth.”

It is important to tailor the approach to your organisation. Different roles may have different needs, and the strategy for returning to the office should align with the charity’s mission and values. Cancer Research UK, for example, recognised that their research teams needed to be in the office more frequently due to the collaborative nature of their work, while their fundraising teams could work more flexibly. Michelle Mitchell, CEO of Cancer Research UK, explained, “One size doesn’t fit all, especially in a diverse organisation like ours. We’ve tailored our approach to ensure it meets the specific needs of each team.”

By adopting a carefully thought-out and tailored strategy, charity leaders can create a more compelling case for returning to the office. This strategy should resonate with the unique needs of their staff while supporting the organisation’s broader goals.

Ensuring the Right Fit: How to appoint the perfect CEO for your charity

Appointing the right CEO for a charity is a crucial decision that can significantly impact the organisation's success. The process requires careful planning, thorough evaluation, and a strategic approach. As an Interim CEO, I have supported trustees through this process a number of times. Here are some of the insights I have discovered that help ensure that you choose the right candidate.

The first step in appointing a CEO is to clearly define the role's requirements and the expectations you have for the candidate. This will have changed since you last appointed, not least because the organisation will have changed and will need a different sort of leader. This includes outlining the specific skills, experience, and qualifications needed. Look for candidates with a strong background in the charity sector, leadership roles, and a track record of achievements, which you must check. Additionally, ensure the candidate aligns with the charity's values and culture. Their personal beliefs and working style should resonate with the organisation's mission. Moreover, the ideal candidate should have a clear vision and strategy for the charity's future, demonstrating an understanding of both short-term and long-term goals.

A thorough screening process is essential to identify the most promising candidates. This involves carefully reviewing the candidate’s CV and application, focusing on relevant experience and accomplishments. Conducting comprehensive background checks, including criminal records, financial history, and previous employment verification, is crucial to ensure there are no red flags or highlighting areas you would want to explore in more depth if you invited them for an interview.

Interviews are a critical part of the selection process. A structured approach can help gather valuable insights. Use competency-based interviews to assess how the candidate has handled similar situations in the past, revealing their problem-solving abilities and leadership style. Have model answers to help guide the interview panel and ensure each interview is conducted in the same way and properly documented. Involve board members, senior staff, and key stakeholders in the interview process to ensure diverse perspectives and a more comprehensive evaluation. Present real-life scenarios the charity faces and ask the candidate how they would handle them, providing a glimpse into their strategic thinking and decision-making abilities.

Assessing the candidate’s skills and aptitude is crucial. Evaluate their ability to lead, inspire, and manage teams effectively, as strong leadership is essential for driving the charity’s mission forward. Ensure they understand charity financial management, including fundraising, budgeting, and financial planning. Assess their ability to think strategically and develop long-term plans that align with the charity's goals.

Gathering feedback from people who have worked with the candidate can provide valuable insights. Speak to former colleagues and other professional contacts to get a sense of the candidate’s work ethic and performance. Get feedback from current and past board members who have worked with the candidate to understand their governance skills. Gather input from stakeholders who have interacted with the candidate in previous roles to assess their external relations and partnership skills.

To ensure the candidate is the right fit, establish a probation period during which the candidate’s performance is closely monitored and evaluated.

Psychometric tests can provide additional insights into the candidate’s personality and cognitive abilities. These tests help understand the candidate’s personality traits, leadership style, and work behaviour. Assess their problem-solving abilities, critical thinking, and decision-making skills through cognitive tests. However, this might be a problem for some people. As a person with dyslexia, I find these tests measure my dyslexia, not me!

Involving the board and stakeholders in the selection process is essential. Ensure the board is involved in the selection process and approves the final candidate. Engage key stakeholders in the selection process to ensure the candidate has broad support within the organisation.

Assessing the candidate’s commitment and passion for the cause is crucial. Determine the candidate’s commitment to the charity’s mission and their passion for the cause. A deeply motivated CEO is more likely to drive the charity’s success. Ensure the candidate is willing to make a long-term commitment to the charity, demonstrating dedication and stability.

Once appointed, continuous monitoring and support are vital to ensure the CEO's success. Regularly evaluate the CEO’s performance against set goals and objectives to ensure they are on track. Provide opportunities for ongoing professional development and support to help the CEO grow and succeed in their role.

By following these steps, I have seen an increase in the likelihood of selecting a CEO who is well-suited to lead your charity and drive its mission forward.

Board appraisals

Today I was talking to a Chair of Trustees about board appraisals as the board is reticent, as many boards are, whether this is a perceived slight to their integrity, capability or effectiveness, or a fear of exposure to shortcomings.

Conducting trustee appraisals is good practice but not obligatory. I have introduced appraisals for all of the charities I have chaired and recommended them in my governance reviews of others. I have found that after initial reluctance, the board actually found them enjoyable. The trick is finding the right approach and selling it to the board, so they do not take it as a personal challenge.

Conducting charity trustee appraisals offers several benefits that can significantly enhance the effectiveness and governance of a charity. Here are some key advantages:

1. Improved Governance:
- Enhanced Accountability: Regular appraisals hold trustees accountable for their performance and responsibilities, ensuring they are fulfilling their duties effectively.
- Transparency: Appraisals foster a culture of transparency, making it clear how decisions are made and how trustees contribute to the charity's success.

2. Trustee Development:
- Identifying Training Needs: Appraisals can highlight areas where trustees may need additional training or support, helping them to develop their skills and knowledge.
- Personal Growth: Trustees can gain valuable feedback that contributes to their personal and professional development.

3. Performance Improvement:
- Role Clarity: Appraisals help clarify the roles and expectations of trustees, ensuring everyone understands their specific responsibilities and how they contribute to the charity’s goals.
- Enhanced Effectiveness: By regularly evaluating performance, charities can ensure that trustees are working effectively and efficiently.

4. Strategic Alignment:
- Alignment with Objectives: Appraisals help ensure that trustees are aligned with the charity’s mission, vision, and strategic objectives, promoting cohesive and focused leadership.
- Goal Setting: They provide an opportunity to set and review individual and collective goals, aligning trustee activities with the charity’s strategic priorities.

5. Risk Management:
- Identifying Weaknesses: Regular evaluations can identify weaknesses or gaps in governance, allowing the charity to address potential risks proactively.
- Compliance: Appraisals help ensure that trustees are aware of and compliant with legal and regulatory requirements, reducing the risk of governance failures.

6. Board Dynamics and Teamwork:
- Improved Communication: Appraisals encourage open and constructive communication among trustees, fostering better teamwork and collaboration.
- Conflict Resolution: They provide a structured process to address and resolve conflicts or issues within the board, promoting a harmonious working environment.

7. Enhanced Reputation:
-Building Trust: Regular appraisals can demonstrate a commitment to good governance and enhance the charity’s reputation, building trust with stakeholders, donors, and beneficiaries.
- Attracting Tale: A well-governed charity is more likely to attract high-quality trustees and staff who are committed to the charity’s mission and values.

8. Continuous Improvement:
- Feedback Loop: Appraisals create a feedback loop that drives continuous improvement in governance practices and trustee performance.
- Adaptability: They enable the charity to adapt to changing circumstances and challenges by regularly reviewing and updating governance practices.

Trustee appraisals are vital tools for maintaining high standards of governance, promoting trustee development, and ensuring the charity operates effectively and efficiently to achieve its mission.

I would be interested to hear about your experiences with the board-led appraisals and which you think is the most effective method (peer-led, one-to-one, 360, or the written, chair-led self-assessment).

 

#InterimsInAction – D’Arcy Myers on being a charity CEO - Russam

The following appeared in the most recent edition of Russam's #InterimsInAction:

Ian Joseph, Managing Director of Russam, sits down with D’Arcy Myers, a seasoned interim CEO with over twelve years of hands-on experience in the charity sector. D’Arcy excels in strategy and leadership development, mentoring, performance improvement, and significant organisational change. He specialises in working with boards and leadership teams, often stepping in as an interim CEO to foster productive governance cultures and enhance financial management practices.

Passionate about professionalism within the Third Sector, D’Arcy is also a founder of the Small Charities Coalition and Charity2020 and has extensive international experience working across 32 countries. He is a Fellow of the Chartered Institute of Marketing and a trustee of various voluntary organisations.

What inspired you to transition from marketing and business development to working in the Third Sector, and how has this diverse background benefited your role as an interim CEO?
Shortly after marrying my wife, we decided to volunteer with VSO and were posted to the Kingdom of Tonga in the South Pacific. This two-year experience was transformative and inspired me to help others achieve more than they thought possible. It was deeply fulfilling and enriching for both of us, solidifying my passion for the Third Sector.

How has your background in business influenced your role as an interim CEO?
My business background has been invaluable in my interim CEO roles. Drawing on diverse perspectives and applying business rigour to challenging situations has helped charities navigate complex changes effectively.

Can you share an example of a successful organisational change you led as an interim CEO and the key factors that contributed to its success?
I’ve served as an interim CEO for 15 charities, each requiring some degree of change to prepare for a permanent CEO. My approach is to empower staff and the board to make necessary changes collaboratively. For instance, at one charity, we revamped operational processes and fostered a culture of open communication, significantly improving efficiency and morale.

How do you approach strategy and leadership development when working with boards and senior management teams in not-for-profit organisations?
Transition periods are perfect for reviewing what has worked, what could be improved, and how everything aligns with the charity’s current and future needs. During the interim period, I review strategic goals and culture to help the board understand the type of CEO they need to recruit. I consult widely with stakeholders (staff, trustees, funders, service users, etc.) on strategy and impact, and focus on mentoring and coaching for leadership development.

What are some common challenges you encounter when promoting a productive governance culture, and how do you address them?
Boards that have lost their CEO can become overly involved in operational matters, which can undermine staff confidence in the board and vice versa. I help the board understand their role and clarify what they need from staff, ensuring the information they receive is timely, concise, and clear.

With your extensive experience in international work, how do you adapt your strategies to different cultural and organisational contexts?
Every organisation is unique, regardless of location. An interim CEO needs to have an inquiring mind, taking the time to understand the culture and dynamics within the organisation and the context in which they are working. Once this understanding is achieved, I can craft the right approach to take people with me on the journey.