RUNNING a charity, be it in an employed or voluntary capacity, brings many responsibilities and a vast array of topics.

The demise of Kids Company gave rise to many charities revisiting their governance structures as well as their sources of income.

Such high-profile cases may prompt others to wonder if it could happen to them and this particular case has enlivened the debate about why charities invest.

It has served as a good reminder of two key principles: firstly the duty to provide for the urgent needs of today as well as the needs of future beneficiaries, and secondly (two of the fundamental duties of trustees) to be prudent and to diversify.

Charities spend considerable time contemplating and planning how best to manage risk, in all its forms.

In investment matters, we spend a lot of time (as does our regulator) considering the types of risk, the ability to tolerate volatility in the value of investments and the tactical approach to managing it day to day within an investment portfolio.

In the wider context, the questions regarding risk posed in the last year or so were focused on geopolitical events, mainly on Brexit and the US election.

While charity regulation itself is not driven by EU legislation, and nor are all the tax issues, they can hinder or help a UK charity.

But there are a raft of unknowns and some areas where alignment with the EU approach or determining the UK’s own way need to play out, such as date protection, anti-money laundering initiatives, VAT and employment law, to name a few.

Charities are urged not to panic, to keep informed and to consult relevant sector bodies on key topics.

You cannot avoid risk; it is more a question of how best to manage it.

In other developments, crowdfunding is appearing on the charity scene.

Some charities are exploring its use as a way of match-funding, where grant makers match crowdfunding to reach the charity’s target.

You can also give tax-efficiently subject to the usual ‘benefit’ rules - one for those already using social media in their charity work.

Charity fraud is on the minds of many.

Sadly, the accounting and audit profession has plenty of examples in this area.

It has increased considerably in recent years, much of it internal fraud though the rise in email communication.

Procurement of services, fake invoices and financial controls all areas to watch as well as the potentially to put in place a whistleblowing policy.

Fraud generally in the UK is on the rise, the estimated £193bn last year up 25 per cent, of which £1.9bn impacted charities.

Ethical investment is a topic we regularly deal with.

In Charity Commission guidance terms, trustees are obliged to have a debate, though they may decide not to adopt and specific ethical screening criteria to their portfolio (though half our clients do have ethical criteria within their Investment Policy Statement).

The important thing is to have the debate and to revisit it from time to time.

Also, any criteria put in place should relate to the charitable objectives and be sufficiently pragmatic to be capable of being implemented.

An overarching theme is a reminder to professional service providers of the significance of trust and confidence in managing charity arrangements.

To be effective, boards and management need to be capable, curious and probing, asking the difficult questions when required.

We’re more than happy to help.

Neil McLoram works in business development at wealth management firm Brewin Dolphin, based in Newcastle.

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change. The information contained in the Brewin Dolphin Family Wealth Report is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The value of investments can fall and you may get back less than you invested. The information is for illustrative purposes only and is not intended as investment advice.