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.