Rescuing and restructuring your charity or not for profit organisation is far from a simple task. It takes specialist skills, expertise and experience lacking in most businesses, never mind within a charitable or not for profit organisation where entrepreneurial skills are often not present because of the lack of financial reward.
A rescue of restructure starts with a commercial reality check. Irrespective of the size or type of organisation it is necessary to think of it as a business – what is coming in and when and what is going out and when, are these numbers growing or declining and what control do you have of them? Often one aspect is going down whilst the other is going up and when an organisation contacts us it is very rare that income is going up whilst costs are going down.
Once we have the basic reality check then it is important to understand any time or legal pressures before learning in more detail about the organisation itself.
As you will see, the reality of handling and rescue or restructure is driven by the underlying numbers. If the organisation is not viewed as a business it will die at some point.
Once the basics are known the focus is then on the management and key staff. Are they able and (often most importantly) willing to put in the hard work that will be needed to achieve either a rescue or restructure.
We tend to find the desire to succeed is stronger in a charity and not for profit organisation than in a traditional commercial business. It is nice to see that personal satisfaction gives individuals more drive than the financial reward, but this cannot come at the cost of the commercial reality that a non-emotive person would bring. This is where our experience and expertise brings you the benefit of understanding and realism.
The size of your organisation can have a significant bearing on the opportunity to rescue or restructure. Small organisations tend to have not developed the often unnecessary complexities and disproportionate costs of larger ones. However this simplicity makes quick fixes such as cost savings harder to achieve, and the lack of size makes reorganisations very difficult when everything is critical. But don’t be put off if you are small organisation, never say never, there is always a solution to every problem and we will work with you to find it.