Sector warned of partnership dangers

Entering partnerships with other organisations and losing independence is the biggest risk faced by third sector groups, a new survey has found.

The research, by insurance firm Zurich, also identifies the transfer of risk during partnerships as a potential problem. Other risky issues include attracting and retaining trustees and the need to balance sources of income.

"It is no surprise to see partnerships emerge as the key risk in the sector," said Paul Emery, head of charities and the voluntary sector at Zurich. "Understanding how changing responsibilities influence risk is key. It is the responsibility of each partner to identify this before agreeing a contract."

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