Do Charities Need an HR Department? Essential HR for UK Non-Profits

Key sections

Running a charity or non-profit involves many of the same responsibilities as a commercial business—managing staff, ensuring compliance, and fostering a positive workplace culture. But with tight budgets and limited resources, does a charity need a dedicated HR department?

The short answer is yes, but it depends on the size of the organisation. Some larger charities have dedicated HR teams, while smaller non-profits often rely on managers or trustees to handle HR tasks. Regardless of size, HR is essential for legal compliance, volunteer management, and creating a well-supported workforce.

This guide will explore how charities handle HR, the challenges they face, and whether investing in HR software can streamline operations and reduce costs.

Happy charity staff using Evalu-8 HR software, showcasing easy HR management, compliance tracking, and seamless team coordination.

Helpful Summary

Overview: This article explores whether charities have HR departments, how they manage staff and volunteers, and the challenges of HR in the third sector.

Why Trust Us: As specialists in HR software for charities, we understand the unique HR needs of non-profits and how they can streamline operations.

Why It Matters: Without proper HR management, charities risk legal non-compliance, high staff turnover, and inefficiencies that could affect their ability to make an impact.

Action Points: Charities should consider HR solutions that simplify compliance, workforce management, and volunteer tracking—even if they don’t have an in-house HR team.

Further Research: Discover Evalu-8 HR, a cost-effective, all-in-one HR solution designed for UK charities and non-profits.

How Do Charities Manage HR?

Larger Charities: Dedicated HR Departments

Some larger charities have in-house HR teams that handle:

  • Recruitment & onboarding for employees and volunteers
  • HR policies & compliance to ensure they follow employment laws
  • Payroll & benefits administration
  • Training & development for staff and volunteers

Having a dedicated HR team allows larger charities to run efficiently, ensuring staff well-being, compliance, and professional development.

Small & Medium-Sized Charities: HR on a Budget

Smaller charities rarely have a full HR team due to budget constraints. Instead, HR responsibilities are often handled by:

  • Managers or trustees who juggle HR alongside their main roles
  • Volunteers or part-time HR staff
  • External HR consultants offering advice on employment law and compliance

Without a dedicated team, HR tasks can become overwhelming, leading to compliance risks and inefficient workforce management.

HR Software: A Cost-Effective Solution

Rather than hiring an in-house HR team, many charities use HR software to manage:

  • Employee and volunteer records
  • Compliance tracking (right-to-work checks, GDPR, and health & safety)
  • Leave and absence management
  • Automated onboarding

This approach reduces admin work, ensures compliance, and improves efficiency—without the overhead of a full HR department.

A charity employee struggling with common HR questions, such as checking if a colleague is in, verifying DBS expiry, renewing training, tracking leave, and managing shift cover.

Challenges Charities Face in HR Management

1. Budget Constraints

Charities often operate with limited funds, making it difficult to invest in HR staff, training, and systems. Many struggle to keep up with employment law changes, increasing the risk of non-compliance.

2. Managing Volunteers vs. Employees

Unlike businesses, charities rely heavily on volunteers. However, volunteers still require onboarding, training, and legal protections, adding complexity to HR processes.

3. Compliance Risks

Even charities must follow UK employment laws, including:

  • Right-to-work checks
  • GDPR compliance
  • Health & safety regulations

Without proper HR support or software, it’s easy to overlook critical compliance requirements.

4. High Staff Turnover

Many charity roles are short-term or project-based, leading to frequent hiring and onboarding. Without an HR system, this can be time-consuming and inefficient.

Should Your Charity Invest in HR Software?

For small and medium-sized charities, HR software is a game-changer. Instead of hiring a full HR team, a cost-effective HR system can handle:

  • Recruitment & onboarding – Automating paperwork and compliance checks
  • Leave & absence tracking – Making holiday and sick leave management easier
  • Volunteer management – Keeping track of schedules, training, and documentation
  • HR compliance – Ensuring all legal requirements are met

Why Evalu-8 HR is the Best Choice for Charities

Many charities waste time and resources on outdated HR processes or expensive third-party consultants. Evalu-8 HR is an all-in-one HR solution designed for UK non-profits, offering:

✅ Automated HR processes to reduce admin time

✅ Built-in compliance tracking for right-to-work, GDPR, and health & safety

✅ Affordable charity pricing with cost-effective plans

✅ Volunteer and staff management in one system

Instead of struggling with spreadsheets or costly HR consultants, charities can streamline HR management while staying legally compliant.

Common Questions About HR in Charities

Do all charities need an HR department?

Not necessarily. Small charities often delegate HR tasks to managers or trustees, while larger charities typically have dedicated HR teams.

What HR challenges do charities face?

Charities struggle with budget constraints, compliance risks, volunteer management, and high staff turnover—all of which make efficient HR processes essential.

Can HR software replace an HR department?

For small and mid-sized charities, HR software can handle key tasks like compliance tracking, leave management, and recruitment, reducing the need for an in-house team.

What’s the best HR software for charities?

Evalu-8 HR is the best option for UK charities, offering affordable, all-in-one HR management without the need for third-party add-ons.

How can charities afford HR support?

Many charities use HR software as a cost-effective alternative to hiring HR staff. Evalu-8 HR offers charity-friendly pricing, making it accessible even for small non-profits.

Picture of By Josh McNicholas
By Josh McNicholas

Josh is a driving force in modern organisational excellence, holding a distinct knack for cultivating thriving work environments. With a focus that stretches from team dynamics to the very fabric of workplace safety, his insight resonate with companies eager to foster both human potential and operational integrity.

Copyright Evalu-8 Software Ltd 2023

Evalu-8 Software Ltd

Earl Business Centre

Oldham

OL8 2PF

0161 5289466