In the Scotsman on Saturday 4 July 2020, Alastair Keatinge featured in the following piece: 'Mergers ‘the only way’ to save some Scots charities' and the article is also below.
Mergers may be the only way to secure the survival of some Scottish charities plunged into a cash crisis caused by the coronavirus pandemic. Alastair says the Government will need to be “bold” and play a key role in triggering reform to shore-up the longer term health of the nation’s vital third sector.
Charities face restructuring amid once unthinkable challenges after lockdown forced a collapse in income with the cancellation of major fundraising events and charity shop closures.
Recent research by the Office of the Scottish Charity Regulator (OSCR) found that one in five charities across the country is at risk of collapse in the next 12 months under the financial impact of Covid-19.
Alastair Keatinge, Partner and Head of Charities at Lindsays, said: “Given the scale of the challenges that many charities face, it’s inevitable that we will see some mergers, simply to secure the efficiencies needed.
“I believe the Scottish Government, as a major source of funding for many third sector organisations, has an important part to play.
“It clearly cannot help every charity in Scotland. But it may be that the Government will need to be bold and tell a lot of charities that they must merge if they are to maintain funding.
“It’s quite radical to suggest that it may be no longer viable to help keep so many individual charities going, but this may be necessary to put the public money available to the most effective use.”
Not all change - including mergers - will be negative as charities look to make themselves more resilient to continue supporting their communities and causes long into the future.
Alastair Keatinge, who has advised in the sector for more than 30 years, added: “Most mergers do not happen through choice. They happen because circumstances dictate it. My advice to those organisations who believe this may be the avenue they have to take would be to be on the front foot and be the party which leads that process.
“A merger or joint working arrangement can often be the best way to support service users and use resources efficiently. Technical, legal, governance and identity issues can generally be resolved or avoided with good advice.
“Charities often view such changes as a solution of last resort, but trustees should be proactive. This is a sector which is not blind to the need for innovation - and we see some great examples of it. Change could well be the way to ensure long-term continuity.”
The importance of the third sector to Scotland’s economic and social health cannot be underestimated. There are 24,000 charities in the country, according to Scottish Government statistics. They range from small local charities to large international organisations and include community groups, religious charities, schools, universities, grant-giving groups and major care providers. Their worth runs into billions of pounds.
Although charity shops can begin to reopen following the easing of lockdown measures, it is understood that some organisations face a potential volunteer shortage because many of its volunteers are older and are still shielding in their homes.
