Charities Hit Hard by Cuts
- 11 Dec
Nearly half of charities say they are being forced to dip into reserves, with one in three say they fear being forced to cut services or jobs, according to the survey commissioned by the Charities Aid Foundation (CAF).
John Low, chief executive of CAF, says public spending cuts and increased demand for services is having a poor effect on many charities with one in six charities finding public spending cuts and falling donations may force them to close next year.
252 senior workers in charities of all sizes were surveyed between 18 September 2012 and 1 November 2012.
Nearly half of the executives surveyed said they were using reserves to cover income shortfalls in the past 12 months and more than a quarter said they had cut front-line services, with one in four making staff cuts.
The survey has found:
- 17% said it was likely that their charity may face closure in the next 12 months
- 49% say they have had to use reserves to cover income shortfalls over the last year
- 26% say they had cut front-line services
- 25% say they had made staff cuts
- 90% believe generating more income is going to be their greatest challenge
- 85% believe that "given the current economic situation I am concerned for the future of UK charities"
- 81% believe that the current economic climate is causing the charity sector to be in crisis
- 80% believe that the economic situation is the biggest current threat to the future of UK charities and their own charity
- 73% believe that charities are unable to fulfil their full philanthropic goals, due to reduction in government funding and/or donations
- 68% believe that the economic downturn has affected the services their charity provides
CAF has launched a new campaign last month with the NCVO called Back Britain's Charities, to urge the government, businesses and individuals to get behind charities. So far, more than 1,300 organisations and individuals have signed up to the campaign.
CAF and the NCVO are calling for:
- People to support charities through regular giving, regardless of how much time or money they can give.
- The Government to modernise and promote Gift Aid and Payroll Giving so donations go further.
- The Government to ensure that public bodies do not cut funding for charities disproportionately when making spending reductions.
- Business to support charities either through donations, or through practical means.
- Charities to work together with the Government to modernise and improve fundraising and enhance their impact, so that every pound given goes further towards helping beneficiaries.
John Low, Chief Executive of the Charities Aid Foundation, said:
Times are tough and people have less money to donate to charities. This combined with significant public spending cuts and increased demand for charity services, is having a shocking effect on many charities, calling into question their very viability.
Many organisations are having to dip into their reserves, cut vital frontline services and some are even concerned about whether they can survive in these toughest of times.
Charities of all sizes play an essential role in our society, providing social care and education as well as helping some of the most vulnerable people in our communities. We all need to act now to support Britain's charities so they can continue their vital work.
The minister for International Development, Lynne Featherstone, said that charities needed to be imaginative in seeking new sources of funding:
Charity is amazing but I think it also got too used to Government being the only funder. Organisations needed to be more “active” and look for “other funders to step in perhaps where Government couldn’t do everything.
Image source: http://www.sxc.hu/photo/342379
- 20 Apr
CHARITY WORKS TOWARDS A NATIONAL PLAN TO END HOMELESSNESS
Prime minister, Theresa May and the first ministers of Scotland and Wales congratulated "Crisis" on its anniversary and gave an assurance to work hand in hand with them while on a quest to eradicate...
- 30 Jan
THE FATE OF EU-FUNDED PROJECTS AND ITS EFFECT ON CHARITY SERVICES
In March 2016, forecasts of growth were low and the government's own estimates put the Treasury's coffers £122bn poorer by 2020.The supreme court has also determined that MPs must approve the...
- 15 Jun
INCREASE IN THREATS OF EVICTIONS FROM HOMES
After analysing statistics from the Ministry of Justice, the housing charity (Shelter) found the following:In the past year, the number of people seeking advice from 'Shelter' on their eviction...
- 07 Jun
CHARITIES, THEIR BRANDS, BENEFICIARIES AND HOW TO EFFECT CHANGE
"Most charities exist because their founders believed the future could be different if they mobilised supporters", but Mandy Johnson of the Guardian believes"This vision is being lost."Charities are...
- 17 Apr
Support for veterans to return to work
Places for People hopes to support veterans into the workplace and also benefit from the skills and experience they have to offer, reports 24dash.All veterans applying for jobs in Places for People's...
- 26 Jan
Charity registers as social landlord
It has now registered its housing department as a housing association, Inside Housing reports.The charity set up Golden Lane Housing (GLH) in 1998, which has now registered to be a social landlord...
- 14 Jan
Charity to develop app for people with disabilities
The funding will enable the charity to develop and test the free app, called FlyCatcher, which could be on the market by 2016.The app uses iBeacon technology to send information through smartphones...
- 14 Jan
Young people’s health harmed by fuel poverty
The Department of Energy and Climate Change have reported that 10% of households in England were in fuel poverty.The charity, Turn2us have stated that 75% of the 2,060 adults in the PRS who were...
- 08 Jan
Homelessness in Scotland
Shelter Scotland stated that this percentage is ‘disproportionate' to the sector's size which makes up 13% of all housing in Scotland, Inside Housing reports. It was also mentioned that the number...
- 07 Jan
Homelessness an ‘increasing trend’ in Wales
Cais blames the lack of options available to individuals due to the change in the type of support that can be offered.The Chief Executive of Cais, Clive Wolfendale has described the problem of...
What are the Future Funding Arrangements for Supported and Sheltered Housing? "Another informative session provided by Support Solutions, excellent session" P.R. - Wrekin Housing Trust