Policy Survey: Half of Charities Don’t Have Sufficient Funding for Existing Services in 2022
Half of the charities that took part in a recent survey said they did not have sufficient funding to deliver their existing services in 2022. The survey of 168 organisations, which was conducted by The Wheel also found that a quarter of these charities had no financial reserves.
Commenting on the survey’s findings, Ivan Cooper Director of Public Policy at The Wheel said, “These stark figures reflect the serious position many charities find themselves in as a result of both the pandemic and pre-existing challenges that have not been addressed. These organisations support the most vulnerable in our society but many are struggling to survive.”
“Some of these charities risk running out of funds as the cost-of-living and Ukranian crises drive more people to seek help from charities and community groups,” said Ivan Cooper.
Ivan Cooper added that while 80% of respondents said that COVID-19 has had a negative impact on their capacity to offer services, many if the challenges pre-date the pandemic. “One of the primary areas of concern is the increasingly onerous compliance and reporting requirements placed on charities. Our findings show that organisations across the sector must report a wide range of information to multiple statutory agencies and bodies. Two-thirds of respondents are required to report the same compliance data to multiple sources, but only 30% of respondents have dedicated compliance staff, demonstrating the significant challenge that these organisations face in meeting these requirements. There is a clear need for the streamlining of compliance requirements and dedicated funding for compliance costs by statutory funders.”
Ivan Cooper says that the quarter or organisations without financial reserves are in a particularly precarious position, a third of those with reserves have had to dig into those funds as a result of COVID-19. “This leaves many charities with very little room to deal with the anticipated increase in demand for their services,” said Ivan Cooper.