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Risks to the charity sector 

At Ecclesiastical, we believe that working with key industry bodies, third sector groups and our customers is invaluable in gaining a true understanding of the challenges and opportunities the charity sector faces today.

That’s why we were delighted to support initiatives like New Philanthropy Capital's (NPC's) State of the Sector programme - a piece of research which began to explore the new ways in which charities are adapting to change in order to deliver the best results for the people they help.

We also carry out our own surveys with charities and this insight helps us not only to shape our products but also to develop our specialist market knowledge and hone our expertise, enabling us to share best practice and advice on how to manage risks in the sector.

In our most recent survey in late 2017*, charities told us the top 10 risks that they are concerned or very concerned about:

1. Funding 84% 

2. Impact of Government changes 72% 

3. Reputational risk 66%

4. GDPR/data protection 65% 

5. Cyber/internet crime 63% 

6. Grant providers 62% 

7. Employer liability 53% 

8. Exposure to social media 51% 

9. Increased focus on governance 45% 

10. Impact of Brexit 44%

Bringing together all of this insight, we have produced a guide responding to concerns from charities about upcoming changes to the charity landscape, sharing our perspective on some of the topics they’ve told us are most important to the sector at this time.

As brokers, this guide should help you to navigate this time of transformation with your charity clients as they become ever more innovative in their fundraising and explore new models and ways to engage. This, coupled with new regulation and increasing threats such as cyber-crime, means that charities are facing and taking more risks than ever before; making specialist advice and support from their insurance partners even more essential.

*FWD research of 101 charities commissioned by Ecclesiastical in October 2017

David Britton - By David Britton, Charity Director

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