Leading a charity today means juggling competing priorities: financial sustainability, organisational culture and delivering meaningful impact. For small charities in particular, this balancing act can feel relentless. How do leaders keep the mission alive while ensuring the numbers add up? This article explores practical ways to navigate these tensions and build strong foundations for the future.
The reality of charity leadership
Charity leadership often feels like an impossible balancing act. With over 185,000 registered charities in the UK (Charity Commission, November 2025), each exists to fulfil a unique purpose and serve specific beneficiaries. Whatever your role, passion for the cause is a given—but passion alone doesn’t pay the bills.
I lead the organisation responsible for delivering most of the peripatetic music provision in schools across Birmingham. Recently, I attended the Music for Youth Proms at the Royal Albert Hall, where one of our ensembles performed. Seeing our 80 young people and their teachers shine was inspiring. Yet the very next morning, I was in a budget meeting, reforecasting the figures for the academic year. These contrasting experiences highlight the tension at the heart of charity leadership: staying inspired by impact while managing financial realities. You will have your own versions of this reality.
Financial pressures are mounting
Flat funding, rising costs and increased employer National Insurance contributions mean long term financial sustainability is more challenging than ever. As local councils face their own financial pressures, many charities are looking to other funding sources to sure up shortfalls. For many leaders, conversations inevitably tilt towards numbers. This may be a necessity, but we have a responsibility not to lose sight of the bigger picture. Heading into 2026, ask yourself: how often do you intentionally reconnect with your charity’s purpose—and let that perspective shape your financial decisions?
Culture: the hidden lever
Organisational culture is critical in navigating these challenges. Whether you lead paid teams or a volunteer army, how do you create an environment where people flourish and remain passionate about your mission - while understanding that sustainability matters? Culture isn’t a “soft” issue; it underpins resilience and long-term success – the time to nurture this intentionally may well help navigate some of these other challenges.
Three pillars for long-term success
I would suggest that across the sector, charities must balance three priorities:
- Financial sustainability: to weather uncertainty and invest in your mission
- Culture: to foster an environment where staff and volunteers feel valued
- Impact: to deliver meaningful change for the communities you serve
At different times, one pillar may need more focus than the others. Is your approach intentional or reactive? Would outcomes improve if you made these shifts consciously?
Looking ahead
I’ll be exploring these themes and more at the ICAEW Charity Conference in January in a session titled “Harmony or Headache? The Realities of Balancing Finance and Impact.” Your insights can help shape this conversation—please complete our short survey contained within the webpage below and share it with colleagues. This will help shape our session together and keep this dialogue alive well into 2026.
*the views expressed are the authors’ and not ICAEW's