Growth Fund Financial Resilience Research

Introduction

This research explores financial resilience in charities and social enterprises involved in the Growth Fund programme. Financial resilience means an organisation’s ability to manage financial pressures and continue providing services. The report may be of interest to VCSEs and the organisations who support them (including funders, social lenders, infrastructure organisations, and commissioners).

Findings

The research found that financial resilience depends on both internal and external factors. Stable income, strong financial management, and varied funding sources can help organisations manage financial pressures.

The research found that:

• many organisations rely on a small number of funding sources

• unpredictable income can create financial instability

• access to flexible finance can help organisations manage financial risk

• financial planning and skills can strengthen resilience

• social investment can support longer-term financial stability