Charities are often described as resilient, and with good reason. Across the sector, organisations continue to adapt, find new ways to deliver support and respond to increasingly complex needs, often with limited resources and considerable uncertainty.

But resilience should not be confused with having unlimited capacity. Behind the positive stories of achievement are organisations navigating funding pressures, rising costs, workforce challenges and the constant need to balance ambition with financial reality.

At our recent Charity Seminar, we invited attendees to share their experiences through a series of questions about the current state of the sector. The responses offered an interesting snapshot of how charities are feeling, what they are proud of and where they see the greatest challenges.

While this was not intended to be a representative survey of the whole charity sector, the findings provide some valuable insights into the experiences of the organisations taking part.

A sector that remains ambitious, but is not without its pressures

One of the clearest themes from the written responses was the continuing importance of sustainable funding.

When asked what was keeping them awake at night, participants repeatedly highlighted funding uncertainty, cash flow, rising costs, the loss of key contracts and the challenge of maintaining income streams.

Staffing and capacity were also prominent. Attracting and retaining skilled people, managing workloads, supporting staff wellbeing and ensuring that teams have the knowledge and resources they need were recurring concerns.

There was also a wider sense of responsibility around governance, continuity and future planning. What happens if a key member of staff leaves? How dependent is the organisation on a particular trustee or individual? Are the right systems and processes in place to support the charity as it grows?

These are not simply operational questions. They go to the heart of whether charities can continue to deliver their purpose sustainably.

Local presence: being known and connected matters

An interesting finding emerged when participants were asked about awareness of their charity within the local community.

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This suggests that there may be an opportunity for many charities to strengthen their visibility and relationships within the communities they serve.

Being locally present is about more than having a building, an office or a geographical footprint. It is about being recognised, trusted and connected. It means understanding local needs, developing meaningful partnerships and ensuring that communities know where to turn for support.

The written responses reinforced this point, with profile, visibility and partnerships appearing among the priorities charities want to develop over the coming year.

There is also an important strategic dimension. Strong local relationships can help charities identify emerging needs, develop referral routes, build trust with funders and partners, and ensure their services remain relevant.

In an environment where resources are stretched, collaboration and connection may be just as important as growth.

Financial confidence, but with some important questions

The financial findings were particularly interesting because they revealed both confidence and areas requiring attention.

89% of respondents felt their charity was probably or definitely sustainable in its current form.

Similarly, 2/3rd of respondents who answered the reserves question reported having adequate reserves, while a further nine said they had reserves but that these were insufficient.

There are positive signs here. However, the responses also suggest that confidence in financial sustainability needs to be supported by strong financial planning and an understanding of the real costs of delivery.

For example, project and service costing was the most frequently identified area for improvement, selected by 38% respondents. This is particularly important when charities are considering new funding opportunities or entering into commissioned arrangements.

If the full cost of delivery is not understood, organisations can find themselves taking on work that places additional pressure on already stretched resources.

Indeed, when asked whether current funding covered the full cost of delivering funded services and activities, 22% respondents said it frequently left a shortfall.

This raises a wider question for charities and funders alike: are we sufficiently recognising the true cost of delivering quality services?

The importance of financial resilience and organisational knowledge

Another finding deserves attention.

When asked how dependent their finance function was on one individual knowing how everything worked, 58% respondents described their organisation as quite or extremely dependent.

This is a significant organisational risk. It is not unusual for charities, particularly those with relatively small teams, to rely heavily on individuals who hold considerable institutional knowledge. But what happens if that person is unavailable or leaves?

Financial resilience is not simply about having sufficient reserves. It is also about having appropriate systems, documented processes, reliable reporting and the ability to make informed decisions without relying on one person’s knowledge.

This is an area where investment in systems, succession planning and shared understanding can make a real difference.