Tag: Ansvar

Charity insurance specialist advises long-term planning for success

16 new charities launch in The Lothians this year

In 2023, 629 charities were established across Scotland, an increase of 25 compared to the previous 12 months. Of these, 116 were registered in The Lothians*, signifying a growing trend for people keen to make a meaningful difference in their communities as well as society at large.

The research was conducted by Ansvar, an expert insurer for the charity and not-for-profit sectors, using data available from the Office of the Scottish Charity Regulator. It reveals a shift in the philanthropic landscape, indicating that more people are actively seeking ways to contribute positively.

This is prompting Ansvar to extend its support and guidance to those aspiring to establish charities and community organisations.

Martyn Fletcher, Deputy Managing Director at Ansvar, said: “The increase of charitable registrations is definitely something to be celebrated.

“We understand that navigating the complexities of setting up and running a charity successfully can be complicated. It requires careful consideration and planning to ensure long-term success and sustainability.

“We are keen to empower those who want to establish their own charitable organisation in 2024 with the knowledge and resources needed to ensure the longevity and impact of their charitable endeavours.”

With the rise in charitable registrations, Ansvar is providing essential advice and guidance on the often-overlooked aspects of establishing and running a charitable organisation:

Identify the cause and purpose: 

Clearly define the mission and objectives of the charity and what positive impact it hopes to achieve. Find out if any charities are already providing the same services, as working together can be more effective than setting up a new charity and competing for resources.

Legal structure: 

Choose an appropriate legal structure for the organisation, such as a named fund or trust, social enterprise, or Scottish charitable incorporated organisation (SCIO). Each entity type has distinct legal and regulatory obligations, and being registered as a charity may pose limitations on pursuing the desired activities. It is therefore vital to understand the differences and restrictions.

Conduct a comprehensive risk assessment: 

The assessment should include considerations for insufficient funding, governance, compliance, fraud and cybersecurity, and legal and regulatory risks.

Create a business plan: 

Develop a detailed business plan outlining goals, activities, target beneficiaries, and anticipated outcomes. Include a budget that covers startup costs, operational expenses, and potential funding sources.

Registration: 

Register your charity with the appropriate regulatory body, such as the Scottish Charity Regulator, and ensure understanding and compliance with legal requirements for registration.

Insurance considerations: 

Assess the insurance needs of the charity, considering the size and nature of the operations, particularly in relation to staffing, volunteers and fundraising activities. Explore insurance options and work with a provider that understands the nuances of the sector.

Financial management: 

Explore potential funding sources, such as grants, donations, and fundraising activities.

Martyn Fletcher added: “Many people embarking on the journey of setting up a charity or community organisation may not be aware of the intricacies involved.

“By carefully addressing each of these steps and risks, aspiring charity founders can lay a solid foundation for their organisations and increase the likelihood of making a positive and sustainable impact in their communities.”

* Data as per charities registered by the Office of the Scottish Charity Regulator between 1st January 2023 and 30th November 2023.

Lothian charities encouraged to safeguard donations and resources during Fraud Awareness Week

With Charity Fraud Awareness Week taking place between 27th November and 1st December, Ansvar, a leading specialist insurer for the charity, not-for-profit and faith sectors, is raising awareness about how organisations across The Lothians can be proactive to protect their assets, reputation, and beneficiaries.

The week serves as a vital initiative to promote understanding about the serious issue of fraud within the charitable sector. From deceptive grant applications to cyber-attacks, and individuals posing as suppliers with ill intentions, fraudulent activities can severely impact resources and reputations.

Sam Ward, Risk & Compliance Consultant at Ansvar, commented: “Charities and not-for-profit organisations play a crucial role in our society and must protect themselves against the nefarious tactics of fraudsters. Preventing charity fraud is not only about protecting financial assets but also maintains the crucial trust needed for the ongoing support of the public and donors.

“Charity Fraud Awareness Week serves as a timely reminder to be vigilant and take proactive steps to preserve valuable resources. We are supporting the work it does to raise awareness and highlight good practice. By providing practical information, we can help charitable organisations protect their assets and continue to make a difference.”

Ansvar’s key strategies that charities and not-for-profit organisations can implement to help protect themselves against fraud are:

Protect assets: Safeguarding physical cash and securing online transactions are paramount. Be aware of the risks in terms of financial transactions and implement strong internal controls to mitigate those risks.

Screen personnel: Ensure the right people are on board, from employees to suppliers. Implement comprehensive vetting procedures for staff and suppliers to identify potential risks.

Train staff: Educate staff about the tell-tale signs of fraud, such as common spelling errors in communication, unusual communication tones, or unexpected urgent requests from unknown sources.

Regularly assess risks: Conduct risk assessments to identify vulnerable areas within an organisation. Knowing where potential risks lie allows charities to implement safeguards and allocate responsibilities appropriately. Multiple individuals should oversee high-risk areas, such as finances, to create a robust system of checks and balances. Ansvar’s online risk assessment guide for charities may help.

Have adequate insurance: Having the right insurance is crucial. Ensure a policy covers the specific risks an organisation faces and be aware of any exclusions.

Ansvar’s Sam Ward explains: “Your insurance broker will be able to help you find the right policy for your specific needs. If you have any doubts, do not hesitate to seek their guidance.”

Cyber-attacks are also a growing concern for charitable organisations. The increasing sophistication of cyber threats makes it challenging to differentiate between legitimate and malicious communications, especially without proper training and processes in place. Charities must invest in cybersecurity measures to protect sensitive data and maintain the trust of their donors.

Sam Ward underscores the importance of these measures:

“Fraud, including cyber-attacks, is a very real threat. Charity Fraud Awareness Week is a reminder for charities to fortify their defences against deceptive activities, and we are encouraging charitable and not-for-profit organisations to take proactive measures to protect themselves.

“By implementing practical steps, charities can continue their invaluable work and ensure that funds entrusted to them are used for their intended purposes.”

Urgent call to secure Edinburgh and the Lothians’ community halls

In an era marked by evolving community dynamics and changing societal needs, village and community halls across The Lothians have developed into central hubs for an ever-growing variety of activities.

In addition to the traditional group meetings, toddler groups and pantomimes, these spaces now foster the growth of small enterprises, facilitate community engagement, and house community businesses, such as post offices, cafes, and libraries.

However, the threat to their continued success lies in the balance as the addition of activities and changes in purpose bring new risks that may invalidate their insurance coverage.

Ansvar, the expert insurers for the charity and not-for-profit sectors, are urging centre committees to verify the adequacy of their existing protective coverage to guarantee the protection of these venues for future use.

There are approximately 3,000 centres[1] across Scotland that host thousands of events and celebrations every year. With some of these halls and centres being built before World War I or to commemorate it, many have been vital community spaces for over 100 years.

The varying usage agreements and quality of provisions and building materials differ considerably across the country. As such, they can face various risks, from accidental damage and fire hazards to potential liability claims.

Adam Tier, Head of Underwriting at Ansvar, emphasises the importance: “Village and community halls are no longer limited to being mere event venues; they have seamlessly woven themselves into the fabric of everyday life.

“From hosting yoga classes and farmers’ markets to providing space for personal trainers, art workshops and post offices, these halls have become the lifeblood of community interaction. This evolution has created vibrant ecosystems where entrepreneurs can thrive, neighbours can connect, and shared resources can flourish.

“Indeed, by acting as vaccination centres during the Covid-19 pandemic and, due to the current cost of living crisis, as places families can go to receive emergency food provision, their importance to a community has been reaffirmed. The transformation of village and community halls into multi-purpose hubs is a heartwarming reflection of communities adapting to changing times. However, this also calls for a reassessment of the protective measures in place.”

Due to recent inflationary pressures and the rapid increase in the cost of materials, a significant number of village halls and community centres will now be underinsured.

Adam Tier added: “Being underinsured can have devastating consequences in the event of a large loss or significant damage to these buildings, where policyholders are forced to find the shortfall to reinstate the property.

“These delays in getting back up and running, or in severe cases back open at all, can leave a big hole in the local community. Therefore, it is imperative that a buildings valuation is regularly updated and contents and other items are frequently inventoried.

“We understand the immense value community halls hold and want to ensure they are protected. Without adequate coverage, these community spaces and the clubs and local businesses they support can face significant financial strain or even closure.

“Working with a specialist insurer will ensure that the essence of what makes these community spaces thrive is preserved. They will understand the unique challenges community-driven initiatives face and provide tailored coverage to address those needs, ensuring peace of mind for community organisers and members.”

[1]https://www.gov.scot/publications/land-reform-review-group-final-report-land-scotland-common-good/pages/42/

Charities urged to bid for prize pot offered by insurance specialist

Charities in The Lothians have a chance to win a share of a £25,000 prize pot offered by expert charity insurer Ansvar as part of its Community Campaign.

Many good causes in the region have been struggling to raise funds during the current cost of living crisis and Ansvar, which has insured charities, churches and voluntary groups for more than 60 years, is offering help.

The money will be split three ways: £15,000 for the overall winner with £5,000 each going to two additional charities.

Applications for funding can be submitted between Monday 6th March and Monday 17th April, with winners announced by Wednesday 31st May.

Charities simply need to complete a short online form and explain in 500 words or less why their project deserves the prize.

Judges will be looking for projects that are about to start, or already running, which positively impact the local community.

Sarah Cox, Managing Director at Ansvar, said: “These are tough times for many charities, so we’re delighted to announce our search for three registered charities to benefit from a £25,000 prize pot.

“We know how much that money will mean to projects being run across the country and the judges are particularly keen to receive entries that provide a detailed outline of how the money would be spent.”

A judging panel will meet to decide the winner – and entries need to be made online via the Ansvar website. Entrants must be a registered charity and their charity number will be needed to apply.

Sarah Cox added: “We’ve been insuring charitable organisations at the heart of the community for a long time and giving back to the community is an important part of what we do.

“So, we’re really looking forward to hearing from a wide breadth of charities and learning how they could benefit from this funding boost. We strongly urge any eligible charities in need of funding to submit an application.”

For more information, please visit: https://www.ansvar.co.uk/community-campaign-2023/community-campaign-2023/