Winding Up Fabulously - Part 1 ( In which I cannot sleep, we make the decision to wind up and I discover a dirty secret. . .)

Now, as the Executive Director of a small charity you spend a lot of nights lying awake worrying, but over the last six months I’ve been doing that more than usual. During our cash flow crisis in 2008/9 I made a series of case study videos for NCVO. In one of those I said that sometimes the best option for an organisation is in fact to close. But I thought I was giving that advice to other organisations. . .
The decision to wind up wasn’t an easy one to make and it wasn’t made quickly. My own words haunted me over months of restless nights. So one night I finally dared to ask myself ‘Is WebPlay really still the only organisation that can deliver the work?’ (Blasphemy!) And a very clear voice, not particularly welcome at the time, said ‘No, it’s not’. The next morning, I called my Trustees.
WebPlay has always been a proactive organisation and never afraid of change. We pioneered linking technology and young people’s theatre in 1999. We were early adopters of mixed economies and generating earned income to lessen grant dependency. We took one of the first Venturesome loans (and paid it back in full). Funnily enough, our success at generating earned income is why we were also an early adopter of the recession! Our earned income stream from schools faltered quickly when the recession began and we had to completely restructure the organisation and create a new business model to survive. That was two years ago and our new business model not only succeeded in keeping us going but also resulted in us creating some of our most impressive and inspiring projects.
Then why are we making the decision to wind up now – when we aren’t out of money and we’ve always managed to find our way through tight spots before?
It takes a lot of physical and mental energy to keep a small charity running in a tough and changing environment. And the lines can become easily blurred between fighting the good fight to keep the work going and fighting it to keep the organisation going. This is especially so when you add in the reality of staff losing their jobs (including you), organisational reputation and history and the fear of failure. But in the end, the work is the most important thing and you have to stay focused on that.
We realised that keeping the organisation going wasn’t the only way to keep the work going. When we began, no one else was doing what we do. We were still on dial-up modems for goodness sake! The world has moved on. Theatre companies are now eager to work with technology and the resources and models we have created have helped develop their capacity to do so. Others can take the baton and build on what we’ve begun. If we transfer our projects into other organisations, we can add value for them and ensure a legacy for the work. In a time of limited resources, this kind of practical thinking is important, because there is only so much money to go around. It needs to be invested in the most strategic and effective ways possible.
The trustees and I began to look at winding up not as a failure, but as a positive and grown up choice which would let the work develop and add value to the sector as a whole. And by making a pro-active decision before we were out of money, we would have control of the process and could ensure it was done with integrity and in a way that celebrated what we had achieved as an organisation. We started to view winding up as the last stage in the organisation’s life and when we looked at it that way we realised that we needed to treat it with the same amount of care and attention as when we were building it up. We wanted to wind up fabulously.
So I started looking for help and guidance. And I hit a wall. I called the Charity Commission. I called NCVO. Nobody had any productive answers to the most practical questions. What do we need to do for the work? The people and funders? The organisation? It seems like winding up is a big dirty secret that nobody wants to talk about. This of course leaves us struggling in the dark and feeling quite alone. We decided to use our own situation as an opportunity to open the door a little on the process so that others could look in. So we’ll be publishing regular blogs about it on the NCVO website between now and November. Maybe it will help other organisations who are exploring options for the future. It won’t be definitive, but it will be an honest look at our journey. This isn’t an easy process. In addition to being WebPlay’s Executive Director, I’m also its founder. There’s the technical, practical and logistical side to the process (what do I do with all this STUFF anyway?), and then there’s the emotional side of it (LOTS of conflicting feelings). We’ll share it all. And hopefully it will be of some use to others. Stay tuned. . .
Sydney Thornbury
WebPlay is an arts education charity creating projects for schools that combine technology and theatre in order to raise children’s aspirations, creativity, skills and cross-cultural understanding. Since 2000, WebPlay has worked with over 30,000 young people from across the UK, USA, India and China.Sydney Thornbury is WebPlay’s founder and Executive Director. Read an exclusive interview with her in Engage, NCVO's online membership magazine.
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Winding up fabulously
Sydney Thornbury, the Executive Director of the small charity Webplay, documents the process of winding up her charity so that people in similar situation can learn from her experiences.













Comments
Enormous thanks to Sydney for bring up this important question for us here at NCVO. In response to some of the issues she has raised with us through this process we have put together this short intro to closing down a VCO. This is very much a work in progress so if you know about other resources that could be useful to others in this position please get in touch and I'll be happy to add them to the page.
Also, for anyone considering closing down for financial rather than strategic reasons, we have put together a further resource page on what to do if you're facing serious cashflow issues.
Looking forward to reading all your future posts Sydney!
Jess Farr
NCVO Sustainable Funding Officer
An interesting post - everything sounds pretty much under control. However I have some idea of the frantic paddling that might be going on under the surface to give the impression of the elegantly gliding swan above.
In 2009 I was involved in closing down the Anglo-German Foundation, a registered charity that had been in existance for 36 years. The closure process took a number of years and involved some very careful planning, particularly as the end approached. We were fortunate enough to have the full support of all the Trustees and the (tiny) staff team. I learned a lot in the process, particularly with regard to practicalities such as how to close down the organisation's bank accounts, but still be able to pay the accountants to prepare the closure accounts and the removal men to take away our last remaining items.
I've listed a few helpful hints on this website http://www.missionaccomplished.org.uk/ and am happy to offer any practical advice to people going through the same process.
Thanks for posting your thoughts Ann - would you mind if I link to your resource page from ours?
I'd be delighted. I've just noticed that one of the links at the bottom of the page is out orf date though and I need to change it - the one for Newcastle CVS Information Sheet – Closing a registered charity. It should be:
http://www.cvsnewcastle.org.uk/assets/files/supportingdeveloping/closing_a_registered_charity.pdf
Ann's points about the timing of closing bank accounts etc is really an important one. We spent a lot of time chatting to our accountants about it. I have taken a look at Ann's resources that she links to above and they are really helpful and practical - definately worth checking out. Thanks for sending it!
Thanks Sidney. Glad you found it useful. I'm happy to help out with general pointers and info, or just talking through what needs doing (for free). When we were closing down the most useful/reassuring thing I did was to talk to someone who'd been through it all before.
Well you will definately be getting a call! Thank you so much.
Closing a charity is always a tough call. This blog captures well the need for the work, not the organisation to be primary (despite trustees n=having a duty to act "in the best interests of the organisation"
I closed a charity (as a trustee) for all the right reasons, and to create a new organisation that will be more effective in doing the work. The Charity Commission were supportive but the strength of feeling from the charities users and former users was considerable, and vociferous!
If anyone is considering taking this step, please make sure you have users support or good PR advice!
That is a really interesting point, David. Do you have any specific examples to share of good ways to communicate with your stakeholders about the process? Or big things to avoid!
Sydney, I'm not sure I can share examples of good communication. We were trading right up until the announcement to close (and didn't leak anything beforehand because we wanted to retain confidence in the business), in hindsight we should have taken at least all the stakeholders into our confidence and explained why we had to close and what the plans for the future were. Because we hadn't shared our thinking and brought people with us there was a very negative reaction that took a long time to sort out.
Hi David, I can completely understand why your organisation took that approach. It's a delicate balance and there are so many conflicting ideas spinning around when you're closing. For obvious reasons, we liased wtih our funders originally because we had to bring them into the process, but we have sort of drip fed the information about closing to other stakeholders. Clearly, we are being very transparent now with the blog and all, but we are still figuring out the best way to make a broader statement to schools, past partners etc about the wind up, probably in September. Your experience is really helpful and also an important thing for organisations to consider in their planning. Thanks.
Great article Sydney.
Just a small point from my experience: it's important to do things in the right order!
I've recently had to close down a small charity which hadn't been active for some time, but had a little money left in the bank which the Trustees had decided we would use for a specific purpose by passing it on after the charity was closed down.
It was only after I had closed the charity and was closing down the limited company that I realised that any assets remaining after the company was closed could be seized. So you have to close down your bank account BEFORE you fill in all those nice easy forms and send them off to HMRC. We made an arrangement for one of the trustees to hold the cash in a client account where it would be safe and ring-fenced, and he will pass it on to the chosen recipient in due course.
Different banks have different processes for closing down their accounts, which may need the actual signatures of a majority of Trustees on a letter sent by post, so you have to factor in the time needed to do this.
I mean Companies' House, not HMRC - sorry.
SUPER good point, Catherine! Thanks.
I'm so sad to read that webplay will close. Our paths crossed briefly in Southwark when I was establishing a community training centre called the Into centre. The Webplay concept was an inspiration and call to action to harness the digital world and bend it to our needs - connecting people and communities.
The need for pioneers and pioneering organisations seems to me to greater not less than ever before. The current trend for public funders to contract with ever larger organisations - seems to me to be a huge mistake.
Hear, hear - I agree with everything you say, Brendan. WebPlay's work has been fantastic. I also agree re the larger contracts to larger organisations - we keep being told to team up to work with others but that takes time and contracts only allow you a few weeks to respond. ANother thing that is putting small charities in jeopardy.
Hi Brendan. Thank you for your kind thoughts. I do remember you from Into. It really helps to hear praise and positive reinforcement for the work that we have accomplished over the years. I am trying to keep that in mind while navigating all of the mundane (and ocassionally depressing) details of winding down. As I begin to sort through files and photos of past work in preparation for moving out of our offices, it brings to mind so many of the great things that WebPlay has accomplished. It is a wistful and melancholy feeling at times, so your comments really helped today. Thanks!
Quick link tip: there's a guide on how to close down a project or organisation on the Knowhow Nonprofit site. It doesn't go into much detail, however.