Unpaid debts can place unnecessary pressure on a charity’s finances and divert resources away from its core activities. Whether your organisation is dealing with an unpaid invoice, outstanding contractual payment or another sum that is due, acting promptly can improve the prospects of recovery and prevent the position from becoming more difficult.

DTM Legal advises charities, charitable companies, trusts, community interest companies, social enterprises and other not-for-profit organisations on recovering outstanding debts. We assess the circumstances of the debt, the position of the debtor and your organisation’s wider priorities before recommending an appropriate course of action.

Our approach ranges from initial correspondence and negotiation through to formal court proceedings and enforcement where required. We aim to recover what your organisation is owed efficiently while considering the value of the debt, the costs involved and any ongoing relationship with the debtor.

We support charities and not-for-profit organisations throughout the debt recovery process, including:

Effective debt recovery is about more than pursuing payment as quickly as possible. The appropriate approach will depend on the amount owed, the circumstances of the debtor, the strength of the organisation’s position and whether there is an ongoing commercial or charitable relationship to consider.

We provide clear advice on the options available and help clients choose a recovery strategy that is proportionate to the debt. In some cases, a carefully drafted letter or structured negotiation may be sufficient to secure payment. In others, formal proceedings may be necessary to protect the organisation’s position and recover the sums due.

Our approach remains focused on the wider interests of the organisation throughout the process. We consider the likely costs of recovery, the prospects of securing payment and the potential impact of different courses of action, helping trustees and decision-makers make informed choices about how organisational resources should be used.

Where a debtor disputes the amount owed or the matter develops into wider litigation, we can provide continued support through the dispute resolution process. This allows your organisation to take a consistent and strategic approach from the first request for payment through to enforcement where necessary.

We provide:

• Clear advice on the most appropriate route to recovering a debt
• A proportionate approach based on the value and circumstances of the matter
• Early assessment of potential costs, risks and recovery prospects
• Practical support with negotiation and payment arrangements
• Robust action where formal proceedings are required
• Ongoing advice through court proceedings and enforcement where necessary

If your charity or not-for-profit organisation is owed money, taking advice at an early stage can help you understand your recovery options and determine the most appropriate way forward.

Contact Alison and the Charity & Philanthropy team by calling 01244 354 800 or via email at alison.brennan@dtmlegal.com.