Message
Continued Progress in Expanding Services to Charities
Shared Services for Charities continued our mission in helping charities with their governance by expanding our services in 2023.
Revenue rose by 16% from $602k to $700k. Delivered projects grew by 4% from 183 to 190. The differential increase reflects the confluence of a few factors. Expansion of product scope and recalibration of product choices reduced the number of projects. Expiry of funding for data protection as a service for small charities reduced demand for these short duration projects, completed in 2022. SSC was compelled to raise fees to cover the cost of higher salaries which affected all businesses, while still offering a heavily subsidised service. We had held back any increase for 4 years in order to first establish we were able to deliver the quality of service before finally giving in to cost pressures and raising price.
In 2023, clients entrusted SSC with larger remits, after working with us over a few years. We have also encouraged the planning of their risk and control programmes over a 3-year period to foster continuity in governance and efficiency of management. This benefits both our clients and ourselves. In total, we covered 62 clients, fewer than the 81 in 2022. They cover every sector of charities and range from small to large as before.
Increased complexity, new concerns and newly minted charities
SSC extended its product-service offerings in Risk Assessment, Personal Data Protection and Business Continuity so as to address complex and “new” concerns, which arose from the Covid-19 pandemic. Charities became more aware of their dependence on technology and more concerned about improving IT security.
Projects of this nature are more complex than refresher sessions in PDP. This complexity involves more effort and constrains the number of projects undertaken. For this reason, too, SSC delivered fewer projects and served fewer clients in 2023 than in 2022.
Newly minted charities have different concerns from well-established ones. SSC developed and offered a special “bundle’ of introductory core manuals to new charities after testing them in 2022. These are designed to introduce Governance as a natural development in growth.
Anti-money laundering, cybersecurity concerns and crisis planning provide opportunities.
Anti-money laundering and Counter Terrorism Financing (AML-CFT), introduced in late 2022, gained prominence with recent incidents. Some of the individuals involved had made charitable donations. Widespread awareness led to charities wanting to safeguard themselves as well as to avoid regulatory penalty and reputational damage.
Cybersecurity concerns have been on the radar for some time. Even small- scale cases cause financial loss and damage reputations. SSC has integrated cyber-security in its ITGC process, which has attracted clients.
Business continuity and Crisis planning comes within the broader ambit of risk identification and management. This represents an area of recent interest which we are also working on.
Revised Code of Governance 2023
The Code of Governance for Charities and institutions of a Public Character was revised in 2023 to come into effect in January 2024. This Revised Code distils governance into 6 principles and requires increased transparency and accountability as well as published graded self-assessments.
SSC has worked on how to help charities to assess their compliance, given their individual operating circumstances, and to identify points for improvement. We will roll out werkshops in 2024 in addition to webinars and tailored services.
Environmental, Social and Governance (ESG) factors are a key consideration within the Revised Code which charities must consider in managing and communicating their activities. Anticipating interest in implementation, SSC conducted a dipstick survey of donor opinion with some partner charities. Survey results show donors are aware of ESG but not yet ready for ESG to make a difference to amount donated. Other reasons predominate, e.g the mission of the charity and reputation of its leaders. Survey respondents say they will be ready to use ESG data in a year or two.
Beyond the Words: Communicating Charity Governance and Transparency
Accountability and excellence are founded on governance and transparency. SSC’s 2023 Annual Seminar referenced and highlighted the Revised Charities Code …which all charities must now observe. In this seminar, over 100 people from 80 charities were introduced to wisdom of developing the governance to be proud of and communicating it honestly and straightforwardly for best effect.
SSC also worked with partners on webinars and seminars on topical issues, some of which were on the Revised Code. This is described under Seminars in this Report. The Ministry of Community, Culture and Youth and Centre for Non-Profit Leadership (CNPL) were notable partners
SSC Friends and Volunteers
SSC values volunteers. We especially appreciate skilled professionals who add capacity to meet charities’ needs and, in certain cases, bring their experience and expertise to refresh the on-the ground interaction.
In 2023, SSC became partners with the Singapore Computer Society whose members volunteered on designated projects. We appreciate their specialist skills which supplemented the contributions of our existing partners, the Accountant General’s Department, Deloitte Singapore and Ernst & Young LLP.
Fundraising through the Arts
We held two fundraising events in 2023, centred on the performing arts. We cooperated with Wild Rice for the musical, Snow White and the Seven Dwarfs. This was as successful in 2023 as our first collaboration in 2022. The 1-for-1 matching from the Tote Board, helped raise over $300k. We also collaborated in joint fundraising with the Singapore Symphony Orchestra (SSO) to celebrate Singapore’s National Day, as well as the charitable causes.
Finance
Revenue fram the services SSC provided to charities and IPEs in 2023 was $703k. SSC’s remaining expenditure was funded by donations and grants of $691k. SGX Cares continued to sponsor SSC with funds raised through the year building up to the Bul Charge. Drawdown of reserves was $120k. In 2023, SSC’s costs rose with salaries. Manpower was 85% of expenditure. Overheads remained under tight control. To control costs and advance ESG, SSC moved office to smaller premises and made remote working practices more permanent.
Looking Ahead
In the year ahead, SSC will press on with our goal of growing our services to help build governance in charities. We provide practical experience from working with a wide range of charities from every sector of the charity landscape, enhanced by the specific expertise of industry specialists.
SSC’s model for its own expansion is that clients’ needs are paramount. We will listen to our charity partners and provide professional services as needed; achieve scale economies while keeping overheads in check; and endeavour to remain as affordable as possible, when salaries and costs are rising.
We will step up effort to raise funds and to recruit volunteers so we might remain a viable cost-effective service-provider to charities.
SSC’S Board and Management appreciate the contributions and support of charities, staff, volunteers, and donors that have enabled us to fulfil our mission to serve non-profit organisations and preserve the confidence of their stakeholders.