Daniel Phelan first published Charity Finance in 1990, just as the charity sector was about to fundamentally change. Two hundred issues later, he reflects on the journey with Vibeka Mair.

Today, the world is awash with networks. The internet and social media have made it easier for interest groups to share knowledge and experience.

In the early 1990s, the world was not so joined-up. “Charity finance directors were mostly not in touch with each other,” says Daniel Phelan. “It was much harder to share knowledge and learning.”

First issue

Phelan created Charity Finance (originally titled NGO Finance) to fill this gap. “I realised that no-one was addressing the complexity of the charity finance role in one place. There were complex tax affairs, arcane investment rules, unusual governance structures, multiple funding and accounting issues and, not least, crucial personal development challenges – nothing was pulling this all together.”

The launch issue of NGO Finance was published in late 1990. That first issue contained articles on subjects that would be recognised as relevant today, such as liberalising charity investment rules, using property assets effectively, solving the charity VAT problem and charity trading issues. There was also an article on today’s high-profile topic of ‘social investment’.

Phelan says: “Despite the longevity of charitable traditions and institutions, the last 25 years has been a time of really significant change in the world. Of course this has had an impact on charities.”

During its 23-year existence Charity Finance has grown and developed in a number of ways. The Charity 100 Index, Charity Shops Survey and Charity Audit Survey are just some of the valuable commercial tools and data sources enabling charities to benchmark with their peers.

“The Charity Audit Survey prompted significant downward pressure on audit fees in the sector,” says Phelan. “Charities could, for the first time, compare what they were being charged with what other charities were being charged. Over the years this has saved the sector millions of pounds in audit fees.”

Charity Finance is also now available online and it connects with its audience on Twitter (@csfinance) and LinkedIn. And its sister product civilsociety.co.uk delivers daily charity finance news.

Phelan wants to make sure Charity Finance helps charities continue to get improved services from suppliers. “I want paying your subscription to Charity Finance to be an absolute no-brainer. Your subscription should save your charity money, provide the insights you need to mitigate wide-ranging risks and continue to help promote your personal development.”

Reflecting on the charity sector today, Phelan says he observes a steady march to enterprise, professionalism and commercialisation which is bringing charities onto ground already occupied by commercial companies.

“Enterprise is all-pervading,” he says. “As long as charities remain values-driven, then it’s ok. But it won’t be if charities succumb to the very thing that we criticise businesses for – going flat out to make as much money as possible, with little regard for the customer or society. Charities must always consider their beneficiaries first.”