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Supporting a Charity Through Closure

A manager from an established community organisation approached GCVS at a time of crisis. Their charity, which had served local people in Glasgow for over 20 years, faced multiple critical challenges, making closure inevitable.

The organisation was a Scottish Charitable Incorporated Organisation (SCIO), governed by a voluntary board and supported by a small team of dedicated staff. Over two decades, they provided a wide range of educational and wellbeing-focused activity programmes in the local community.

When circumstances changed and difficulties accumulated, the charity’s new manager reached out to GCVS for crisis management support. The decision to close meant not only a significant loss for local families who benefitted from its services, but also major disappointment for staff and volunteers who had invested their energy and commitment.

The Challenges:

Governance, Finances, and Leadership Change

When the organisation approached GCVS, they required urgent advice on meeting obligations to funders and the charity regulator amid critical challenges uncovered by the new management.

They were in a financial crisis, not due to a lack of funding, but due to mismanagement and weak governance. Problems included banking and financial controls, unclear roles and responsibilities of trustees and senior management, and compliance obligations to the charity regulator.

Woman talking on the phone

“When I first joined, I quickly realised things were not as they should be. I knew I needed help and turned to GCVS for guidance. They understood right away what was needed and provided calm, practical support.”

One of their greatest concerns was to wind down the charity in a solvent manner, ensuring all bills and debts were paid, including staff wages. They also faced the challenge of communicating the closure of a valued local resource.

“It was an incredibly emotional and stressful situation, but GCVS helped me see the steps clearly and stay focused on what needed to be done.”

Seeking Help from GCVS

Over several months, GCVS worked closely with the manager and trustees through regular phone calls and meetings, offering impartial advice and a listening ear. We brought in additional expertise when required and referred to resources from partner organisations, including SCVO and OSCR.

It was necessary to tackle and strengthen the organisation’s governance to handle the closure. We helped new trustees understand their responsibilities, including constitutional changes and financial reporting.

The manager also requested support in communicating with stakeholders and local audiences. We provided practical advice, acting as a sounding board to identify approaches that balanced transparency with compassion.

“The support I received helped me understand what I needed to do at every stage and gave me the confidence to make difficult decisions while keeping the organisation’s commitments on track.”

Building Governance and Leadership Capacity

We worked closely with the manager to clarify the trustees’ roles and responsibilities. This includes explaining how a two-tier organisation operates, and guiding them on reporting requirements to OSCR (Scotland’s Charity Regulator) and funders.

“GCVS helped me understand what good governance looks like and what a board should be doing. I didn’t have a background in the third sector, so their advice and patience made all the difference.”

Archway at Glasgow Green

Support Across the Organisation

In addition to governance, we provided guidance on constitutional changes, meeting procedures, crisis management planning, and funder reporting. HR support was offered during the redundancy process, ensuring staffing changes were handled sensitively. As the trustees stepped down, emergency procedures were put in place to maintain continuity.

“We used the HR service when we had to make a member of staff redundant. It was such a difficult experience, but GCVS guided us step by step and were always there when I needed advice.”

We also advised on communicating with stakeholders and local audiences, and ensured organisational records were accurate and compliant once new board members were in place.

“They helped make sure everything was in place for the organisation to close properly and respectfully.”

Providing Practical and Compassionate Guidance

At GCVS, we recognise that supporting the people behind organisations is as important as providing expertise. We start by listening and understanding, then provide training, advice, and a guiding hand.

In this case, our support helped the manager tackle a difficult charity closure with confidence, clarity, and a sense of control.

“GCVS were in my corner. I could talk to them confidentially, and they had the knowledge and experience to guide me through.”

Early Support and Learning Makes a Difference

People standing united in a circle

Through our work, GCVS helps strengthen and sustain the third sector by supporting not only organisations, but also the people who lead them. From training and resources to individual advice surgeries, we want to help build skills, capacity and stronger management in the sector.

Do you recognise elements of this story in your organisation? Early intervention is crucial in addressing governance issues before they become unmanageable. We are committed to providing impartial, honest, and transparent guidance.

Please contact sectordev@gcvs.org.uk or browse our Support and Services to learn about the help available.


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