The independent welfare organisations in Germany are facing a variety of strategic challenges that influence 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 work 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 financing strategically
One aspect of the financial challenges faced by non-statutory welfare organisations that deserves particular 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 met. This represents a considerable administrative burden.
We support charities in the development of business models (e.g. in consolidations in the form of amalgamations or mergers) and strategies for the diversification of 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.
Reiner Klinz
Director, Consulting, Öffentlicher Sektor
KPMG AG Wirtschaftsprüfungsgesellschaft