A new chapter for charity resilience?

The charity sector has spent the past few years navigating an almost relentless series of challenges. Rising demand, funding pressures, workforce shortages and economic uncertainty have all tested the sector’s ability to deliver impact while maintaining financial sustainability. 

Yet findings from Mapping public sector risk, resilience and readiness 2026 suggest the mood across the wider public and social sector is shifting. The pessimism that characterised recent years is giving way to something more measured: a cautious confidence built not on improved circumstances, but on hard-earned experience. 

For charities, this is not a story of recovery but adaptation. The pressures remain, but after several years of difficult decisions, many leaders are moving beyond crisis management and focusing on how they position their organisations for the future. 

Charity resilience relies on tough decision-making  

Many charities have spent recent years taking decisive action to strengthen their resilience. Whether through restructuring programmes, workforce reductions or reviewing service delivery models, organisations have been forced to make difficult decisions in response to a challenging operating and funding environment. 

This reflects a wider trend across the public and social sector, where 54% of organisations have made significant budget reallocations in the past year. For many, resilience is no longer about making incremental savings, but making deliberate choices about where resources can deliver the greatest impact. 

As charities adjust to new operating models, boards are becoming more confident in making difficult strategic decisions and taking bold action where necessary. Trustees are also learning from peers across the sector, creating greater confidence to challenge traditional approaches and embrace transformation where it supports long-term sustainability. 

Greater scrutiny is also changing the conversation. As charities reshape services and rethink priorities, they are increasingly accountable to supporters and beneficiaries, who want a clearer understanding of how organisations are delivering impact and managing resources.

"There are a lot of very well-informed donors these days. People look at financial reports, strategies and organisational priorities much more closely, so charities need to be clear about the decisions they're making and why." - Abbie Francis-Pike 

Could culture and governance be the missing pieces for charity resilience? 

While discussions around resilience often focus on funding, workforce or governance processes, one of the most influential factors is often overlooked: organisational culture. This year’s research found that 49% of leaders are not confident in addressing workplace culture issues, highlighting a challenge that sits at the heart of organisational resilience. 

When charities are under pressure, culture often determines the quality of the decisions that follow. It shapes whether challenge is encouraged, whether different perspectives are heard and whether leaders feel confident making difficult trade-offs. 

"Good decision-making is built on trust. It's about having quality information, welcoming different perspectives and creating an environment where people feel comfortable challenging and debating decisions. We know culture can be just as important as strategy. Charities with cultures that encourage openness, challenge and accountability are typically better placed to make the right decisions and maintain the public’s trust", says Abbie.

As organisations undergo transformation, this becomes particularly important. Strong governance is not simply about structures and compliance. It is about creating an environment where healthy challenge is encouraged, and difficult decisions can be scrutinised effectively. This is reflected in the recently refreshed Charity Governance Code, which recognises that how trustees work together is fundamental to effective decision-making and risk management.  Approaches such as these help boards balance immediate pressures while maintaining focus on longer-term objectives. 

Focusing on the fundamentals for digital transformation in charity resilience

Digital transformation remains high on leadership agendas across the public and social sector, with 59% of public and social sector leaders identifying AI and automation as a critical priority over the next 12 to 24 months. While artificial intelligence continues to attract significant attention in the charities sector, many are taking a practical approach rather than rushing to adoption. Instead, boards are focusing on strengthening the foundations that will enable future innovation. 

Abbie mentions that "the rise of AI hasn't necessarily led to widespread implementation across the sector yet, but it has encouraged organisations to think much more seriously about technology and the quality of their data. There is a better understanding of the opportunity that AI creates. That has put a spotlight on areas like technology roadmaps and legacy IT." 

For many charities, this means revisiting legacy systems, improving data quality and developing clearer technology roadmaps. Public trust remains critical for the charity sector. As a result, organisations recognise the need to get the fundamentals right before introducing technologies that could influence service delivery, fundraising or decision-making. The result? A more strategic and considered approach to transformation, one that prioritises readiness over rapid implementation. The focus here is on readiness rather than speed. 

Collaboration is moving centre stage in charity resilience

Collaboration is increasingly becoming an operational necessity rather than just a strategic option. As organisations look beyond traditional funding models, results from Mapping public sector risk, resilience, and readiness 2026 found that 59% are already exploring new revenue sources or partnerships to support long-term sustainability.  

For charities, this is translating into greater openness to shared services, joint initiatives and closer collaboration with beneficiaries when designing services. Rather than viewing collaboration as a compromise, many organisations are recognising it as a practical route to increasing impact while managing finite resources. 

"Some of the decisions charities are making now would have been much more uncomfortable conversations a few years ago. Organisations are increasingly collaborating as a practical way to increase impact and make better use of limited resources", says Abbie.

The workforce challenge is not just about hiring people; it's about ensuring future charity resilience 

Financial sustainability may dominate board agendas, but many charities are equally concerned about whether they have the people and skills needed to deliver their ambitions and targets. 

Workforce pressures continue to be felt across the public and social sector, with recruitment challenges, skills shortages and workforce planning all emerging as significant risks in our latest report, Mapping risk, resilience and readiness 2026. For charities, these pressures are particularly acute. Many organisations are responding to rising demand while operating with leaner teams following years of restructuring and cost-saving measures. 

The challenge no longer just centres around recruitment – but as charities transform their operating models, adopt new technologies, and rethink how services are delivered, they are also finding that the skills and experience to support these changes are evolving. 

Abbie says that "charities might be operating in quite a different way to how they were before, and that might mean they need new skills and different views to be able to properly scrutinise what's happening."  

This raises important questions for leadership teams and trustee boards alike. Do charities have the right mix of expertise to oversee complex transformation programmes? Are boards equipped to challenge decisions around digital investment, service redesign and financial sustainability? And are organisations building the capabilities they will need for the future, rather than simply replacing those they have lost? 

Looking beyond traditional workforce mode is just one response to these questions. While financial donations remain under pressure, harnessing skills, experience and professional expertise through skills-based volunteering, pro bono support or bringing specialist expertise into governance structures eases capacity constraints and brings fresh perspectives into decision-making. 

"There's a lot of research at the moment that says people don't want to give money, but they're very willing to give time. That's prompting many charities to think more creatively about how they engage supporters and make the most of the skills and experience people are willing to contribute", affirms Abbie.

In a sector where resources are often stretched, access to expertise can be every bit as valuable as access to funding.

What’s next for charities?  

The challenges facing the charity sector have by no means disappeared; financial pressures, rising demand and economic uncertainty remain firmly on leadership agendas. What has changed is how organisations are responding. 

Abbie mentions that "the challenge is making sure immediate pressures don't cause organisations to lose sight of the longer-term outcomes they're trying to achieve." 

Rather than reacting to crisis after crisis, many charities are now building the structures, governance and confidence needed to make informed, strategic decisions.  In an increasingly uncertain environment, charities that thrive are likely to be those investing not just in resilience, but in the capability to anticipate, adapt and seize new opportunities to continue to make the most impact.