General Counsel roles in the non-profit arena are sometimes seen as a stepping stone into retirement, an ‘easy’, less demanding path once you are too tired for the big city and commuter life, but don’t yet want to give up work.
However, this couldn’t be further from the truth: the charity sector is a complex, thriving space in its own right, with the GCs operating within it at the top of their game.
Blending legal rigour with commercial acumen and deep connection to purpose, these non-profit general counsel won’t be telling you how easy their job is, but may talk about how distinct their challenges are and how incredibly varied the work that they take on, in service of the mission and the futures of their organisations.
Legal leadership in the charity sector is becoming more significant than ever, as the non-profit landscape grows more complex. Whether it’s digital fundraising or operating under heightened public and regulatory scrutiny, non-profit legal teams must now do more than simply ensure compliance; they must become strategic advisors to the organisation, driving mission impact and operational resilience while keeping costs to the charity at an absolute minimum.
Charity GCs today have a broader remit than the reactionary focus of past generations; they’re anticipating legal challenges, navigating complex contracts, global partnerships and structural transformation, to take their place as crucial members of the executive team, working closely with boards, CEOs and CFOs on commercial planning, risk and growth.
Successful non-profit legal leaders align their strategy with organisational goals, emphasising the legal department’s value as a business partner, as well as engaging with a shared sense of purpose and making the most of resources and investment. This alignment ensures the most impact from the team’s activity and enables them to become drivers, not observers, of growth.
Rising costs across the nation also translate into increased pressures on the non-profit sector: skyrocketing energy bills have had an impact on many charities, particularly those providing or supporting residential facilities, such as care homes and other elderly care services. The general increased cost of living in the UK has close to doubled some charities’ running costs, with some charities reporting a 90% increase cost of running when compared to 2019.
Meanwhile the recent rise in employer national insurance contributions is placing even more financial stress on the sector; in March this year a survey of national charity leaders by the Charity Finance Group found 82% of respondents “very or moderately concerned” about the ERNIC increase, with 81% noting it would negatively impact their ability to offer competitive benefits to staff, and 69% stating they had already or would imminently reduce headcount as a result.
With so many cost pressures alongside reduced government funding in some areas, fundraising is changing and many non-profits are having to review their operating models, with general counsel the stewards of the strategy to ensure the lights can be kept on.
Fundraising strategy is evolving fast to meet these demands, looking to reach younger digital-driven generations of supporters, but needs to stay compliant with the Fundraising Regulator’s Code of Fundraising Practice. This requires guidance on regulatory requirements, new digital donation routes, and balancing transparency and donor privacy. To be at their most effective, General Counsel and legal teams need to balance innovation in these areas, bolstering the drive to reach new audiences and to make donation processes as flexible and simple as possible, with legal safeguards, protecting public trust in their activity and mission.
Even that may not be enough, though: as the economy stalls and costs soar even stalwart supporters have less spare income to share, and new audiences may agree with the mission, but have their own struggles with bills and housing as their top priority. Other options include increased corporate sponsorship – potentially lucrative but fraught with complex questions of independence, scrutiny and purpose that fall on the GC to untangle.
One of the most fundamental and distinctive roles of the non-profit GC is as the conscience of an organisation. Legal teams regularly advise on governance, safeguarding, ethical standards and whistleblowing, both to guarantee alignment with the law and stakeholder expectations, and to protect the organisational mission and its beneficiaries.
With a seeming increase in charities coming under scrutiny and being investigated for misconduct in recent years, this aspect of the general counsel’s role cannot be understated. Naomi Campbell’s charity Fashion for Relief was found guilty of widespread financial mismanagement and wound up by the Charities Commission last year, after evidence uncovered less than 10% of £4.8m raised over five years was actually given out in grants, with hundreds of thousands instead spent on luxury travel, spas and consultancy payments for trustees. A strong GC might have helped stave off this disastrous end, ensuring healthier governance and establishing ethical financial standards for trustees.
As the Solicitors Regulation Authority (SRA) notes in their review of in-house lawyers, they occupy a unique position that allows them to “pervade every part of the business [and] hold a mirror up to the values of the team to the board”. This ethical leadership often requires lawyers to push back on or challenge assumptions, but the returns are worth it: building credibility, safeguarding reputation and boosting both staff and audience engagement.
In the highly scrutinised and cautious non-profit environment, resources and budget may be tight, with their charitable mission taking spending priority. This can mean not only operating with a lean legal function, but stiff competition when hiring members of the team, operating as charities do at the lower end of the highly paid legal sector.
Legal leaders are increasingly using legal technology to manage stretched capacity and streamline operations, helping to mitigate these constraints. Smart tech adoption frees GCs and other legal roles to focus on higher-value strategic and mission-critical work, and provides charities the best ‘bang for their buck’ in terms of administration costs and impact.
Non-profit organisations need GCs who are operational pragmatists, strategic thinkers and ethical anchors. They must:
GCs in the non-profit world are no longer back-office figures, they are strategic partners at the heart of the organisation, enabling growth, ensuring resilience and holding firm on purpose when the pressure mounts.
At SSQ, we understand how legal leadership can shape the success and sustainability of a charitable mission. We’re proud to support the sector in identifying and placing senior legal professionals who bring not only legal expertise, but ethical clarity, commercial foresight and a deep commitment to social impact.
If you’re looking to appoint transformational legal leadership, or if you’re a senior lawyer looking to apply your expertise where it matters most, speak to us today.
