Charitable organisations bear great social responsibility in a complex environment. Increasing demands for transparency, efficiency and legal certainty require sound knowledge, reliable structures and strategic foresight.
KPMG supports non-statutory welfare organisations with a holistic advisory approach - from tax and financial advice to governance issues, digitalisation and sustainability.
Customised solutions for your challenges
Our interdisciplinary team supports you with expertise, empathy and many years of industry experience. Whether in the areas of compliance, construction & real estate, ESG or subsidy management - together we develop solutions that suit your organisation.
Effective stakeholder management is crucial for the success of social organisations, as it specifically incorporates the interests of members, donors and volunteers. A customised member and volunteer management system (CRM system) is essential for this.
Targeted fundraising: focus on communication and transparency
A CRM system records member data, keeps it up to date, documents relevant changes and manages member accounts. The insights gained from this can provide targeted support for member recruitment and enable analyses of donation behaviour, which can provide a valuable basis for optimising fundraising measures.
Depending on the classification of donors, targeted communication strategies are required to address them in the best possible way. A systematic and structured approach therefore helps to stabilise existing time donations and attract new donations. Professional fundraising thus makes an important contribution to securing the organisation's long-term existence.
In addition, there is a clear correlation between donation behaviour and the perceived transparency of an organisation: the more transparently the use of resources is communicated to the outside world, the higher the volume of donations tends to be. Certification through donation seals offers an effective way of making this transparency visible and strengthening trust.
Strengthening volunteer commitment: strategies for success
Social organisations also rely heavily on the motivated support of volunteers, who take on a wide range of activities and make a major contribution to society. Effective volunteer management is therefore also a key success factor. In many cases, external advice on optimising volunteer structures and on labour law issues can be useful. We are happy to support you here.
Partner, Performance & Strategy, Enterprise Performance
KPMG AG Wirtschaftsprüfungsgesellschaft
Efficient financial management and controlling in the welfare sector: strategies and measures for optimisation.
In order to be able to offer services, service providers must be provided with the necessary financial resources. The service provided represents added value for which remuneration is paid at a financial level. Based on the financial situation, which is monitored by internal cost and performance accounting, controlling can provide important data to guide management decisions.
Modern controlling systems support full-time and voluntary decision-makers
Charitable organisations are characterised by very heterogeneous fields of activity whose overarching monitoring and control is complex. There is often a lack of processes and systems that enable the monitoring of deviations between planned and actual figures during the year, which means that undesirable economic developments are only recognised at a late stage.
The basis for recognising undesirable economic developments at an early stage are:
Impact orientation as a central task
In addition, legal provisions require an expansion that goes beyond traditional business controlling. For example, since the introduction of the Federal Participation Act (BTHG) in 2017, organisations have been obliged to provide evidence of the impact of their services. In doing so, the services should be adapted to the needs of the service recipient under the premise of efficiency and economy.
This legal requirement significantly increases the importance of impact-oriented controlling and can also provide important insights when working with other target groups. This is because measuring impact and effectiveness in the entire non-profit sector is becoming increasingly important in the allocation of public funds. In addition to cost bearers, stakeholders from politics, society and donors are also interested in impact-orientated activities.
We support non-profit organisations in the following areas:
Director, Audit, Regulatory Advisory - Public sector & Healthcare
KPMG AG Wirtschaftsprüfungsgesellschaft
ESG can help charities build trust, reduce risk and even encourage innovation.
In times of global crises and high social expectations of credible sustainability initiatives, it is also essential for non-statutory welfare organisations to address environmental, social and governance (ESG) issues.
This buzzword refers to a comprehensive concept for assessing and managing corporate responsibility in three key areas:
ESG is increasingly becoming a strategic tool to increase their impact, minimise risks and secure their legitimacy, particularly for non-statutory welfare organisations, which often work with public funds and rely on a high level of trust. Through ESG practices, organisations can meet regulatory requirements, minimise risk and increase public trust, which is crucial for securing support and funding.
There are a number of opportunities associated with ESG:
But there are also some requirements
We support charities in connection with sustainability issues in a variety of ways, such as the development of ESG roadmaps that are individually tailored to the structures of your organisation.
Partner, Audit, Regulatory Advisory, Sustainability Reporting & Governance, Healthcare & Public Sector
KPMG AG Wirtschaftsprüfungsgesellschaft
This is how charitable organisations achieve sustainable property management and the implementation of construction projects - with planning and expertise
Property management
In the public sector, there is a growing need to efficiently manage and optimise property portfolios. Our approach aims to establish active property management that identifies strategically relevant properties that can be financed sustainably. This not only enables us to increase income and save costs, but also to create modern working environments for employees. With our customised solutions, we can ensure that property strategies are not only effective but also beneficial. Active property management offers numerous advantages: It enables the strategic identification of properties that are financially viable and strategically relevant in the long term, optimises the use and marketing of properties to increase revenue and ensures efficient management and use of resources to reduce operating costs.
Property projects
Charities are tasked with managing property projects efficiently, complying with building regulations and achieving sustainable development goals. However, they often have to manage all of this with severely limited financial resources and with the involvement of voluntary support. In addition, involving the community and ensuring transparent communication with all stakeholders is of great importance.
Managing property projects requires careful planning and effective budgeting to ensure that projects can be delivered within the organisation's financial means. This includes developing detailed project plans to take into account all relevant building regulations and identifying potential risks that could affect project progress.
Through a combination of in-depth expertise and a trusted client relationship, we can help charities make the most of their property assets and future-proof them. Our experts analyse your existing projects, identify potential for optimisation and develop tailored strategies to achieve your goals. We offer training courses and workshops to educate your staff and volunteers in property management and ensure they have the necessary knowledge and skills.
Clear processes and binding decision-making channels are the key to an effective compliance structure.
Organisations in the non-profit sector are under enormous pressure today: changes in a wide range of areas are happening ever faster, leading to growing uncertainty. A robust governance structure and compliance with legal regulations are therefore more crucial today than ever before in order to maintain the integrity of the organisation and the trust of the relevant stakeholders. This also requires the development of clearer policies and procedures, regular training of employees and board members and the implementation of functioning control mechanisms for vital processes. Organisations should also act openly and responsibly to ensure that their activities comply with legal requirements and ethical principles.
KPMG supports you in recognising risks at an early stage and making targeted use of opportunities. We support you in the introduction or further development of preventive management systems, the ongoing internal auditing of processes and controls and audits in accordance with IDW standards.
Your path to effective compliance
Compliance management systems (CMS) have been established in many organisations in order to meet legal and regulatory requirements. These systems should be an integral part of good organisational management due to the numerous compliance cases that can be observed. This is also because, if designed appropriately and effectively, they can serve as proof that due diligence and organisational duties with regard to compliance are being met.
If you still have some catching up to do in this area, we will be happy to help you as a competent partner. KPMG's tried-and-tested methodology distinguishes between phases that build on each other: Quick Scan, Inventory Review, Design Review, Appropriateness Review and Effectiveness Review. Our approach ranges from determining the status quo (point in time) of a CMS to the effectiveness statement (period-related).
Our experts work closely with you to develop customised solutions that are tailored to the specific needs of your organisation. We also offer comprehensive training programmes to ensure that your employees and board members have the necessary knowledge and skills to meet compliance requirements.
Partner, Audit, Regulatory Advisory, Sustainability Reporting & Governance, Healthcare & Public Sector
KPMG AG Wirtschaftsprüfungsgesellschaft
Director, Audit, Regulatory Advisory - Public sector & Healthcare
KPMG AG Wirtschaftsprüfungsgesellschaft
As auditors and audit-related consultants, we shape the future and create trust and security
The audit of the annual financial statements and management report of charitable organisations is an essential element of governance in this area. The results of the annual audit, consisting of the balance sheet, income statement, notes, management report and auditor's opinion, form an important basis for the assessment of the organisation's economic and financial position. The audit also examines whether legal and statutory regulations have been complied with and whether control mechanisms are effective. In addition, the audit of the annual financial statements can be supplemented by an audit of the regularity of operational Leadership.
The parties interested in the aforementioned results include the supervisory bodies (e.g. the board of directors, the audit office), the employees of the charitable organisation, its members, all companies and organisations that have a business relationship with the charitable organisation and the tax authorities.
Our experts conduct comprehensive annual audits to ensure financial integrity and transparency. We work closely with you to fulfil all legal requirements and provide you with valuable insights into your financial position.
We understand the complex challenges faced by not-for-profit organisations and businesses. In addition to the annual audit, we also offer other audit and advisory services, for example, our expertise in funds utilisation audits ensures that non-profit organisations use their funds properly and in accordance with legal requirements.
Effective IT security management protects sensitive data from attacks and loss.
IT already supports a large part of the business of charitable organisations. Topics such as access protection, network and data security, procedural documentation, archiving, compliance and interface processing must be focussed on.
How charitable organisations effectively protect their sensitive data
Charities handle a large amount of sensitive data, making them exposed targets for cyberattacks and data loss in our increasingly digitalised world. Hackers are using increasingly sophisticated methods to penetrate networks and steal data. Inadequate security measures can therefore lead to considerable financial damage and loss of trust.
Effective IT security management is essential to effectively protect against digital risks. This includes regularly reviewing and updating security measures, using firewalls and anti-virus software and encrypting sensitive data. In addition, training employees in the secure use of IT systems and sensitising them to potential threats is of great importance. Those who closely monitor and evaluate network activities can recognise and stop suspicious processes in good time.
The establishment of a risk management system is the basis for ensuring the security of important data
The security of critical information can only be achieved through active information security management. This requires the implementation of an information security management system (ISMS) with effective processes, procedures and measures. The globally recognised and only internationally certifiable standard ISO 27001 provides an ideal basis for establishing, operating and continuously optimising an ISMS. An important component of this is the establishment of risk management. This should systematically identify information security risks, evaluate them according to clearly defined criteria and develop countermeasures.
The ISMS also supports the technical and organisational measures required by the new data protection regulations in order to ensure the ability to permanently guarantee the confidentiality, integrity, availability and resilience of systems and services in connection with the processing of personal data.
We support charities in optimising their IT security measures in a targeted manner and establishing a robust ISMS. Our experts analyse your existing measures and any remaining vulnerabilities and develop customised strategies to protect your systems. We support you in implementing security protocols, training your employees and continuously monitoring your IT infrastructure.
Partner, Audit, Regulatory Advisory, Digital Process Compliance
KPMG AG Wirtschaftsprüfungsgesellschaft
Partner, Audit, Regulatory Advisory, Head of Digital Process Compliance, Head of Kirchen and Non-Profit-Organisations
KPMG AG Wirtschaftsprüfungsgesellschaft
How charitable organisations strategically attract, retain and develop their most important resource.
The success of charitable organisations and the quality of the services they provide are largely dependent on qualified and committed employees. This is why there is an acute need for action in the face of growing staff turnover and a persistent shortage of skilled labour.
Strategic personnel management helps organisations to identify open personnel requirements at an early stage and to handle them effectively through effective recruitment, succession planning and internal application management. However, the retention of existing employees must not be overlooked.
Increasing digitalisation and globalisation mean that non-profit organisations also need to adopt "New Work" approaches. If this need is recognised and implemented correctly, it will increase the attractiveness of the employer and open up new perspectives in the non-profit sector. Especially for future generations of skilled workers.
Human resources of the future: minimising risks and seizing opportunities
There are also a number of significant (compliance) risks in human resources, for example in the areas of labour law, social security and data protection. Systematic errors quickly lead to high penalties and additional payments due to the large number of cases. We want to help you create secure structures for tomorrow.
Relevant issues in the area of personnel are
KPMG supports you in responding appropriately to new dynamics and establishing suitable personnel management or optimising existing personnel structures.
Digitalisation, a shortage of skilled workers and growing funding requirements make new strategies necessary for independent charities.
Non-statutory welfare organisations in Germany are facing a number of strategic challenges that affect their work and their future viability. For example, an ageing population is leading to an increasing demand for care and support services, while at the same time the number of available skilled workers is decreasing.
Another important factor is digitalisation. On the one hand, the integration of digital technologies into a variety of work processes can lead to significant efficiency gains and create new opportunities for care and support. On the other hand, however, this transformation also requires considerable investment in IT infrastructure and employee training. Data protection and data security must also be guaranteed so as not to jeopardise client trust.
Financial challenges also play a major role. The financing of non-statutory welfare services is heavily dependent on public funding, which makes the organisations susceptible to changes in political direction and economic fluctuations. It is therefore advisable to diversify funding sources and develop new business models at an early stage.
Complex but crucial: securing funding strategically
One aspect of the financial challenges faced by non-statutory welfare organisations that deserves special attention is the complex management of funding. Applying for, managing and accounting for funding requires extensive knowledge and resources. Different funding programmes each have specific requirements and deadlines that must be adhered to. This represents a considerable administrative burden.
We support charitable organisations in the development of business models (e.g. in the case of consolidations in the form of amalgamations or mergers) and strategies for diversifying funding sources, particularly in the area of efficient funding management. Our experts are at your disposal, drawing on a wealth of experience and the latest technology such as artificial intelligence to solve your specific requirements.
Partner, Audit, Regulatory Advisory, Head of Digital Process Compliance, Head of Kirchen and Non-Profit-Organisations
KPMG AG Wirtschaftsprüfungsgesellschaft
