Charities facing crisis due to pandemic

Charities are reporting a projected loss of 48% in their volunteer’s income following the Covid-19 pandemic.

The Institue of Fundraising, the Charity Finance Group and the National Council for Voluntary Organisations has conducted a survey on over 500 charities in order to assess the impact of the crisis on their organisations.

According to the survey which was published yesterday (March 30), 52% of charities have already reduced their levels of service, with 12% intending to do so in the future.

91% of the charities surveyed said they have already or expect to have their cash flow disrupted, with 62% indicating that this will result in reduced charitable activity.

With charity shops closed and fundraising events cancelled while demand for services is increasing, the charity leaders have warned that charities across the country are facing imminent collapse as their fundraising income dries up.

Charities have been in conversation with the government about a package of support for the charity sector but the leaders have warned that without an urgent injection of money many charities face collapse.

83% of charities said that the most important thing for their organisation’s sustainability over the coming three to six months is access to emergency grant funding. 84% of charities think their organisation could play a role in responding to the outbreak, but the majority agreed that government funding was needed to help them to do so.

Peter Lewis, chief executive of the Institute of Fundraising, said: ‘To ensure that charities are able to both maintain their existing services to people and to play their fullest role meeting the needs of our most vulnerable people we need a support package for the sector.

‘Over the next 12 weeks, charities will lose £4 billion in vital income that they would have received from the British public, at the same time as a 42% surge in demand for their services. They need urgent help to maintain and expand their services.’

Karl Wilding, chief executive of the National Council for Voluntary Organisations, said: ‘These figures reflect the stories we’re hearing every day from our members.

‘Charities are faced with making incredibly difficult decisions about how to ensure their organisations can help now and still be there to make a difference once the crisis is over. Charities run as prudently and efficiently as possible which means few have enough cash stored up to survive a prolonged downturn.’

In related news, according to the organisation PubAid, the 12-week coronavirus lockdown could mean that charities and grassroots sports miss out on £35m in funds raised by pubs.

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