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Charities not effectively using business skills of directors 03/01/07
 
Charities are not making effective use of the business acumen of their directors, and new ways of harnessing these skills need to be developed to avoid wasting talent, according to a study by management provider Director Bank.

The survey of 500 UK business directors, over half of whom are actively involved in charitable trusts, found that ‘hand to mouth’ funding, lack of project management capacity and the public perception that donations should go to causes rather than administration were the factors contributing to their skills not being utilised.

According to the directors questioned, the biggest issues facing charities are: financial management (24%); leadership (18%); business acumen (17%); and strategic direction (12%) – areas where directors’ business skills could be directed.

Roger Flynn, director of SpringBoard Group and a founding director of charity Youth Culture Television said he found it difficult to use his business skills in the sector, as his longer range ideas had to give way to meetings concerning short-term funding, for example.

“Both the people in charities and the directors helping them need to learn how to use each other’s skills better,” he said. “Despite the best of intentions, it so often misfires perhaps because of mismatches between beliefs, expectations and understanding about each other’s motives.”

 
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