The Regulator for Charities in England and Wales
Credit crunch sees charities squeezed by increased demand for services
(Immediate Release - 14 October 2008)
Charities are being squeezed by both an increase in demand for their services and increased costs, according to the Charity Commission, the independent charity regulator. A new survey shows that 4 in 10 charities (38%) have reported that they have been hit by the economic downturn of the last year.
One in five charities (21%) surveyed that deliver services have seen an increase in demand for their services over the last twelve months. At the same time, more than half of all the charities surveyed (54%) have reported that they had seen increased costs in things such as energy, food and travel, indicating the squeeze some charities are experiencing.
The representative sample of just over 500 charities was interviewed by telephone between 17th September and 30th September 2008*. The survey included charities with incomes of less than £10,000 a year up to charities with incomes of more than £1million a year.
Other findings showed that over the past year:
- One in four charities that collect monetary donations reported a decrease in donations.
- 1 in 12 of the charities which reported a decrease in donations generally said they had had to make redundancies as a direct result.
- One in four charities surveyed said they had already put new measures in place to deal with the credit crunch or will do in the future, with more than half of charities surveyed with an income of more than £1million saying they have already or will put new measures in place.
There are 190,000 charities registered in
The Commission has been contacted by some charities that had money in collapsed Icelandic Banks, including one charity that had £11 million deposited. The Commission is providing support and advice to charities via its helpline as well as current information on savings protection and information on the Financial Services Compensation Scheme on its website, www.charitycommission.gov.uk. The site also provides advice and guidance for charities on investments and managing risk.
Dame Suzi Leather, Chair of the Charity Commission said;
“Charities, like many organisations at present, are facing a great deal of uncertainty, and for some the situation could get much worse. Even before last week’s problems with Icelandic bank collapses, some charities are really being squeezed by higher costs and higher demands for vital services. They will wonder how they are going to survive the current crisis whilst trying to continue meeting people’s needs.
We are asking charities that have been affected by the collapse of Icelandic banks to come forward, so that the full extent of the impact on the sector can be properly assessed.
Our helpline is receiving phone calls from worried charities and trustees and we are continuing to provide advice and guidance to help them cope with the current pressures. The situation is changing rapidly so we will of course continue to monitor developments, but most importantly, I really want to encourage people to keep supporting and giving to our charities in these difficult times. They need our help more than ever.”
The Charity Commission helpline for charities and their trustees is 0845 300 0218.
End.
Notes to Editors
*The research was conducted by Carol Goldstone Associates
The total survey of 514 charities was made up of:
126 charities with an income of under £10,000
125 charities with an income of between £10,000 and £99,999
138 charities with an income of between £100,000 and £999,999
125 charities with an income of £1,000,000 and over.
1. The Charity Commission is the independent regulator for charitable activity in
2. The Charity Commission is working with umbrella bodies to clarify what impact the current financial down turn is having on the charity sector. NCVO (National Council for Voluntary Organisations) is hosting a summit to consider these issues.
PR 36/08