Seventy-five per cent of charities see staffing and skills shortages as a risk, while just half invest in training to deal with shortfalls, according to a new report.

According to the latest Charity Finance Directors' Group (CFDG) report the skills shortage is seen as worst at senior management level, with half of charities feeling this is their greatest risk. Finance staff skills were also considered a serious concern for a third of respondents.

While training was the most popular route to dealing with skills shortages, it was perceived as successful in just over half of cases.

The report said this perception may reflect the quality and quantity of training provided or the extent of the skills shortfall in the charity sector.

As well as development, charities said they were reviewing remuneration packages to retain staff, succession planning to cope with unexpected losses and recruitment drives to attract new staff.

This is the third annual report from the 850-member strong CDFG. The group promotes good management in charities through training meetings, conferences and information services.