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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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