Brexit seminar –What’s next for charities? WelcomeBrexit seminar –What’s next for charities? Welcome @DSC_Charity#BrexitSeminar Ciaran Price, Policy Officer, Directory of Social

@DSC_Charity #BrexitSeminar

Brexit seminar – What’s next for charities?

Welcome


Ciaran Price, Policy Officer, Directory of Social Change

@CiaranDSC

www.dsc.org.uk/brexit


We’re not reliving the debate. That ship has sailed…



David Emerson, Chief Executive, Association of charitable Foundations

@ACFoundations


Kathy Roddy, Senior fundraising Trainer and Consultant at DSC

@KathyRoddy


What does Brexit mean for

fundraising?

Written and delivered by Kathy Roddy


Main economic impacts

• Volatility on the stock market

• Marked decrease in the value of the pound against the Euro

• Marked decline in property values

• Predicted recession in 2017






Property values

• “Asking prices for UK properties on the market have fallen on average by 0.9% (‐£2,647) so far this month to £307,824, according to Rightmove. Inner, or central, London was particularly badly hit, with asking prices there falling by 2.3% (‐£19,051).” (Business Insider UK)


Recession


The good news….

• We haven’t left yet!• Need to trigger Article 50• Who has the authority? The Prime Minister or Parliament?

• Legal case being brought against the Leave Campaign (misleading claims)

• If triggered, can Article 50 be revoked?


Will we leave?

• Access to the single markets vs restrictions on free movement?

• Will Parliament have to vote on the terms of departure?

• Will the government become embroiled in legal proceedings?


Impacts: EU funding

• UK charity sector has been receiving approximately £200 million per annum in EU funding – that will go if we leave the EU

• This will also, possibly, result in the loss of match funding / loss of EU partners

• How will applications for EU funding be treated in the meantime? We don’t know


Impacts: Procurement

• Existing EU contracts will probably remain• UK may no be eligible for future contracts if we leave the EU

• Procurement law unlikely to change significantly if we leave the EU if we still want access to the single market

• Further public sector cuts in event of recession?


Trusts and Foundations

• Invest for the medium / long term so can be more resiliant

• Fluctuations in the value of their asset base (funds invested in the stock market)

• Investments may earn less – resulting in less money to distribute in grants

• Likely to favour existing grantees• Greater competition from charities that have lost EU funding


Corporates

• Do not like uncertainty and react by becoming more cautious

• Talk of firms relocating in other EU countries• A recession would most likely result in a contraction in financial charitable support


Individuals

• Recession would lead to job losses / further wage stagnation

• Interest rate cut would hurt savers – who might then become more cautious with disposable income

• Drop in property prices would affect legacy values

• But… we are a very generous nation


Planning for the future

• Undertake a fundraising risk analysis:‐– Sources of income?– Vulnerabilities?– Diversity?– Level of reserves?– Alternative sources of funding?– Fundraising skills / training needs?– Revise business plan – which projects are priority?


Other possibilities

• Set up an EU office?• Think about income generation initiatives


THANK YOU FOR LISTENING!@KathyRoddy


Andrew O’Brien, Head of Policy and Engagement, Charity Finance Group

@CFG_OBrien


Debra Allcock Tyler, Chief Executive, Directory of Social Change

@DAllcockTyler



Thank you!

For more about DSC visit our website: www.dsc.org.ukAlso follow us on twitter: @DSC_Charity

Documents

Brexit seminar –What’s next for charities? WelcomeBrexit seminar –What’s next for charities? Welcome @DSC_Charity#BrexitSeminar Ciaran Price, Policy Officer, Directory of Social