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Welcome to this quarter's Policy Newsletter.

This quarter we are following up on the previous policy newsletter article on social value, we also address an important issue on the warning signs for organisations before hitting financial difficulties, finally, we highlight the value of partnership working and finally provide an update on the Equalities and Human Rights Commission's Code of Practice.

At KCSC, we wanted to share some reflections to support our local voluntary and community sector organisations in forward planning. This way we can be better prepared for any potential organisational changes.

KCSC has recently been through some changes, having taken a long hard look at the operating environment both socially and economically.  Looking into the future and seeking how to remain resilient, in response we made some internal changes such as a team restructure and an office move.   

As you will appreciate, organisational restructures are rarely straightforward. They can be challenging for staff and stakeholders alike—both emotionally and operationally. However, taking a proactive and transparent approach enables organisations to prepare effectively, minimising disruption and supporting informed decision-making.

To that end, we have outlined a number of key financial and strategic triggers that should be monitored closely as part of good governance and planning:  This is for senior members of staff and trustees alike.

• When preparing your budget, is your projected expenditure, including current staffing commitments, likely to exceed anticipated income?
• Do you have a strong and viable pipeline of prospective funders to apply to in order to sustain existing services and support any planned growth?
• Where your budget assumes success of funding applications, do you have a high level of confidence in them being successful and how do you know this? Where confidence is limited (we would say less than a 90% assurance), you should carefully consider the associated financial risk.
• Do you hold sufficient reserves to manage potential redundancies, ensure an orderly wind-down if required, or sustain services while awaiting secured funding?

These considerations are not intended to prompt immediate action but to ensure that as voluntary and community organisations we remain vigilant, realistic, and prepared.

Early identification of risks allows us to plan both strategically and compassionately, in line with our organisational values and responsibilities.

Want to talk to someone in confidence, then talk to us. We welcome the opportunity to discuss these points further and if your organisation may be facing financial distress or you simply have concerns about the future state of your organisation then it may be worth talking this through.

If you want to discuss your situation in a confidential space then book a one-to-one appointment with staff at KCSC by contacting [email protected] and we will arrange a session with you.

At a time when more organisations are approaching the same funders, perhaps we need to consider other approaches. One being coming together in partnership!  At KCSC we want to support and help to facilitate partnership development.  Before we come to that, below are some key points about partnership working:

• Partnerships are not just about meeting specific contractual outputs for funding. They involve working together on a deeper level to achieve shared long-term goals.
• Partners collaboratively design services from the outset rather than having a pre-defined service imposed upon them.
• Partners share responsibility for both successes and failures.
• Partners work towards the same goals, with aligned values and a mutual understanding of what success looks like.
• Power is shared rather than concentrated in one party e.g valuing smaller grassroot organisations as equals
• Good partnerships should have a safe space for partners to openly discuss issues, challenge each other and make and own up to mistakes without fear.

Early autumn, KCSC aims to bring organisations together to explore what could be delivered through partnership approaches, starting with identifying rising need in the community. Look out for further information from this September onwards.

The updated Code of Practice on services, public functions and associations from the Equality and Human Rights Commission (EHRC) will take effect on 5 August 2026. 

While it updates its guidance the Charity Commission offers an interim update on provisions of EHRC’s code that clarify the law on matters of sex and gender. Charities are advised to take steps towards ensuring they can comply with the Code and the law. The Charity Commission aims to publish its guidance during the Autumn.