Working in Finance for a Charity

There are currently over 180,000 registered charities in Britain; all of whom need some sort of financial support. It is important it for a charity to have a strong financial and technical infrastructure, with a high calibre of staff, to help increase the organisation’s efficiency and effectiveness. This means there is a constant flow of finance opportunities and a demand for accountants who have a genuine interest in the sector.

Many finance professionals who work in the charity sector claim that job satisfaction, a good work life balance and the chance to give something back to society are just a few of the many perks that keep them motivated and happy in their roles. This sector offers a huge variety of organisations with different working environments, some of which can be just as demanding and fast paced as the commercial sector. It requires dedicated accountants who are looking for their work to be recognized and want to be able to see how their achievements have made a difference to the organisation.

What is the Charity Sector?

The charity sector (also called the third or not for profit sector) covers a large number of organisations, from small to large international NGOs (Non-governmental Organisations). These can often include universities, schools and voluntary organisations, the majority of which are registered with the Charity Commission.

Organisations in the charity sector are separate from business and government and do not distribute their profits to shareholders. A charity’s main aim is to be of benefit to the public, and many of the major charities have become well known public names.

Why Work for a Charity?

Contrary to popular opinion, salaries in the charity sector have become more competitive and some organisations have started to recognise the need to be more comparative with the commercial sector in order to attract the best finance staff. However, it is generally the attraction of superior benefits, such as excellent holiday entitlement, pension schemes, flexible working hours and a good working environment, that really motivate candidates to move to the charity sector.

To give you an idea of the basic salaries that an Accounts Assistants can expect is around £18,000 - £23,000 and Finance Managers will be around £34,000 to £39,000. These salaries can vary greatly, depending on the size of the organisation, their income and the qualifications required.

Average salary of roles placed with TPP in 2010

	Average	Lowest	Highest
Assistant/Clerk	21k	13k	25k
Officer	26k	14k	34k
Accountant	34k	27k	45k
Controller	35k	21k	45k
Manager	37k	25k	52k
Director/Head of	46k	35k	65k

You can find out more detailed information on salaries in the sector from the CFDG’s annual salary survey.

What Can I Expect?

Being part of the finance department within the charity or not for profit sector puts you at the heart of the organisation. Whether you are working in a team processing invoices, managing gift aid and preparing donor reports, completing the monthly management accounts or financial year end to SORP, this is a very crucial part of any charitable organisation.

Candidates who work in finance are able to support and liaise with various departments such as fundraising to ensure that projects run within budget, analyse costs and ensure that any income received is invested and used to allow for the growth and success of the organisation. The way in which an organisation’s finances are run, allows for its objectives to be met and for its good work to continue and reach as many people as possible.

Job Options within the Charity Sector

The larger charities run their organisations in just the same way as corporations. Career progression opportunities are available within finance departments and there are different financial jobs available to qualified individuals.

Typical jobs will include:

• Financial Accountant
• Finance Director
• Qualified Accountant
• Management Accountant
• Bookkeeper
• Payroll Manager
• Finance Officer
• Accounts Assistant

• Tax Accountant
• Auditor
• Financial Development Director
• Finance Manager
• Finance and Administration Director
• Business Development Manager
• Finance and Corporate Service Manager
• Funding and Budget Manager

This is just a sample of the many finance jobs available within the charity sector. Salaries and benefits will depend on the size of the organisation and the geographical location.

What Do I Need?

These are TPP’s top tips for preparing yourself to work in the charity sector:

• Ensure that your skills are relevant and transferable to the roles you are applying for in the charity sector.
• Do some research on the various types of not for profit organisation within the sector and decide where you would most like to work, for
example in health or children's charities, international development, etc.
• Drawing up strong supporting statements to provide evidence of your genuine interest in the sector and the aims of your chosen
organisation.
• Do some voluntary work, particularly with similar organisation.
• Work as a Treasurer or Trustee – almost all charities require finance professionals on their board. You can search for opportunities
through NCVO’s Trustee Bank.
• Familiarise yourself with the Charities SORP, or Statement of Recommended Practice. Courses are available to bring you up to date.
• Being part- or fully-qualified in either ACA, ACCA, CIMA or CIPFA is a requirement for most roles within the sector.
• Study information provided by www.guidestar.org.uk or www.charity- commission.gov.uk and familiarise yourself with charities finances
through year end accounts.

Qualifications and Experience

Fully qualified Accountants are in high demand within the charity sector. However, if you are not yet fully qualified, pursuing an ACA, ACCA, CIMA or CIPFA qualification can be extremely beneficial and really set you aside from some of the other candidates. The charity sector is highly competitive, and in the current economic climate, many not for profit organisations will only consider candidates who are dedicated to securing a qualification, but are often willing to pay higher salaries for them.

Many organisations offer study support and study leave as an added bonus although this is not always the case.

If you are looking for a graduate- or trainee-level role, you will probably need to apply directly to an organisation. Some charities offer internal training programs, so it is worth doing some research to seek these out.

A good way of getting a foot in the door if you have limited charity experience would be through gaining voluntary work within a finance department or as a Treasurer and although considering temping could be another avenue, clients do still frequently request previous sector experience, particularly for more senior roles.

The charity sector is often overlooked by finance professionals, but it can provide extremely rewarding careers, as well as the increased satisfaction of knowing you are making a valuable contribution towards society.

Latest jobs

Finance Manager Apply Add to basket Salary Min: £30,000.00, Salary Max: £35,000.00, Salary Rate:Yearly Location: London Description Our client provides financial resources to the NFP sector and seeks a Finance Manager to take responsibility for 6-8 voluntary sector clients, ensuring that all services are provided on budget and wit...

Finance Manager

Apply Add to basket

Salary Min: £30,000.00, Salary Max: £35,000.00, Salary Rate:Yearly
Location: London
Description Our client provides financial resources to the NFP sector and seeks a Finance Manager to take responsibility for 6-8 voluntary sector clients, ensuring that all services are provided on budget and wit...

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