Research shows more people are turning to charities for financial aid. Though organisations designed to help are also feeling the pinch.
Just yesterday (July 8th), the Charity Commission published its annual public and trustee research. To put it simply, the findings can be described as nothing short of oxymoronic.
The report detailed a stark rise in people turning to charities for support. Within the last year, 9% of individuals have received food, medical or financial aid from trusts – compared to just 3% five years ago.
However, experts also found that charities are grappling with severe financial pressures. During the same five-year period, the number of people who said they’ve donated to, or raised funds for a charity, fell from 62% to 48%. The aftermath of the Covid-19 pandemic and the rising cost of living have been cited as reasons why.
As a result, half of charity trustees said their foundation had been forced to make changes. This included stopping some services (11%) and using more of their reserves than expected (17%).
‘These findings highlight the central role of the charitable sector at a time of significant pressures in wider society,’ David Holdsworth, chief executive of The Charity Commission, said. ‘Charities are providing a vital lifeline to ever more people, while simultaneously navigating their own financial challenges as donors feel the pinch.’
Despite challenges, the research displayed public faith in charities remains high. Almost 60% of people reported having high trust in foundations – placing them second only to doctors among dependable institutions.
What’s more, the research outlined public confidence in charitable spending has improved. Over six in 10 people believe donations are reaching intended causes – a rise of 7% within the last 12 months.
‘It’s encouraging to see improved public confidence in charitable spending, though there is no room for complacency,’ David continued. ‘Charities must continue to keep their charitable purposes central to everything they do because this remains a key driver in maintaining public trust.
‘The data paints both a challenging picture and a hopeful one – showing a sector that continues to be a bedrock of support and community for people across the country as well as overseas, despite navigating unprecedented demand in an increasingly unstable global landscape.’
Photo by Alex P via Pexels
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