Financial woes result in two charities entering liquidation

In the past few weeks, two charities have announced that continuing financial problems have meant they are unable to continue, resulting in them going into liquidation.

London-based Advising Communities, announced at the start of May that the charity was insolvent. The move, which is expected to result in the loss of 25 jobs, has been blamed on a “precarious financial situation”.

The charity’s accounts for the year to 31 March 2018 revealed that its income of almost £1.3million was matched by a similar level of outgoings.

In a statement the charity admitted that due to financial issues it sought help from an insolvency firm on 10 April but, by 25 April the charity was informed that its financial situation had worsened.

“Having reviewed all options available to the board, we have taken the advice to cease trading in order to limit further liabilities,” the statement said.

National charity, the FPA, has also revealed that it is to go into liquidation. The charity, which provides sexual health services, has voluntarily entered liquidation proceedings.

No official reason has been given by the charity for its decision and although 25 staff are currently facing redundancy, it is hoped that other providers will step in to run a number of ongoing projects.

If your charity is struggling financially it is important to seek help as soon as possible.

At Moore Thompson, we can help you put in place measurement systems that will give you valuable insight into the factors that may be affecting your charity’s performance.

By taking proactive steps to manage performance, you will be able to identify potential problems or opportunities before they pose a serious threat to your charity.

For help and advice, please contact us.