Charities know that during recession the general population tightens its collective belt and gives less; even ?middle income? individuals who fare comparatively well during financial downturn are inclined to ?feel? less wealthy and therefore become less generous. As a result, charities see income and funding cut whilst services ? which are often directed towards sectors hardest hit by recession ? are needed even more. This paradox is not new to fund-raisers and is compounded further by the fact that return on investments drops as interest rates and stock markets fall.

It's all about using limited funds wisely ? but with charities that is always the case! Marketing the brand is as important to this sector as to any commercial organisation. The benefits of maintaining marketing spend in a downturn are well documented and reap many benefits as recession ends. Brand awareness campaigns need to be effective without being ostentatious, bringing the charity's aims to the forefront of people's minds and reminding them that support is still required.

Charities have a duty to explain to their donors how funds are spent; this is never more so than in an economic downturn when the giving public will put the charity under real scrutiny. Those organisations embarking upon any construction or refurbishment project must be able to demonstrate the wise use of resources and give a clear explanation as to how actions meet objectives ? an area where the contractor can have an important part to play. The inevitable reduction of new build and refurbishment will affect contractors but where spend has been projected and approved far-sighted charities may take advantage of the economic situation, using deflation in goods and services to negotiate better deals.

Contractors that supply services to charitable organisations are required to conduct their business ethically and have a policy that states how this works in practice. They must also be prepared to explain to the charity's board of trustees how project spend is allocated and provide options of where costs can be cut without compromising outcomes. This is a time when both contractors and charities need to be flexible and innovative.

Phelan Construction has recently completed a ?350,000 project to extend and refurbish a listed building in East Essex to form a new Multi-Resource Centre for Tendring Community Voluntary Services (TCVS). The funding was obtained from two local Councils and boosted by grants from the Interaction Partnership and Colchester Catalyst. Working on a listed building presents its own challenges, but Phelan wanted to ensure they delivered a high quality product that met the client's brief without budget deviation. A sure way to add cost to the bottom line is to allow the client to skim over the brief or change plans part way through the project. Phelan overcame this by tight definition of the terms of reference at an early stage. The TCVS required assurances that potential delays would be avoided despite the fact that the Centre was occupied and working normally during the entire construction phase. Only by careful initial planning and exacting project management was the project brought in successfully. A case where the devil was truly in the detail!

As fewer construction and refurbishment projects are initiated, competitive pricing and tighter budget controls will become the norm. Contractors that work for clients within the charity sector must be prepared to negotiate on price but above all they must be accommodating to the client's changing priorities, working with them to provide cost justifications and guarantees of timely outcomes.