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Charities & Not For Profit

Brexit risks for the not-for-profit sector

The future of the United Kingdom will be shaped by the choices that are made in the ongoing Brexit negotiations. This includes what our new model of economic cooperation with the EU looks like and whether this represents a “hard” or “soft” Brexit.

The outcome of Brexit, and the UK’s future relationship with the EU, remain uncertain. Come March 2019, there are broadly two potential scenarios: a “no deal” scenario, where time runs out and the UK leaves the EU with no agreement and trades under WTO terms, or a scenario where a deal is reached between the UK and the EU on the terms of a withdrawal and a framework for a new relationship. This deal would likely include a time-limited transition which would look much like current EU membership and last until the end of 2020.

Both scenarios present significant risks, and opportunities, for all business sectors, not least the not-for-profit sector, with approximately 50% of all EU workers currently in the UK working in charitable organisations. This presents an obvious staffing challenge to the sector and charities should consider how they can offer support to their EU colleagues in light of the current uncertainty.

Brexit could also see significant funding changes; the availability of EU funding post December 2020 is uncertain and charities may need to consider other sources of funding should their current funding model no longer be tenable. 

It is crucial that charities don’t wait when it comes to planning ahead for Brexit. By the time the political deadlock breaks, it will be too late to make contingency plans for 29 March. If possible, charities should plan for all eventualities, such as through scenario planning, assessing how the different options impact your organisation, your people and your sector.

Read more of our Brexit insights here -