Indicators Suggest Smaller Charities are Struggling

Recent polls and fundraising data have indicated that donations to NHS charities have risen dramatically since March. Whilst this is perhaps not surprising other charity sectors have seen a decline in donations, this includes homeless and animal shelters as well as disability support groups.

Why are small charities struggling?

A recent report conducted by the Charities Aid Foundation (CAF) indicates that overall donations to charities had increased by £800m in 2020 compared to 2019. However, CAF has said that although donations in 2020 increased overall, smaller charities did not see this growth. During lockdown, many people started to donate to frontline services of the pandemic such as NHS charities. For example, Captain Tom Moore’s fundraising campaign which raised over £32 million for NHS charities. However, these campaigns have left other charities at greater risk. For example, animal charities have seen their largest year-on-year decline in donations. There are similar stories across a number of other charity sectors. The current economic strain caused by COVID-19 has caused many individuals and businesses to reduce their charitable giving whilst also re-directing donations that are made to the sectors directly combatting the pandemic.

What support is available to charities?

The government-supported charities with a £750m bailout in April, however, there have been calls for additional support. In addition, the Small Charities Coalition (SCC) noted in a recent poll that only half of their member organisations have received additional support after applying. This funding was due to cover 6 months of operational costs and the impact on the charity sector as a whole is not expected to be seen until the early months of 2021.

Further Coronavirus guidance for the charity sector can be found here:

https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector

How can we help?

At Hawsons we have a dedicated team of charity and not-for-profit accountants at our offices in Sheffield, Doncaster, and Northampton. Our dedicated team fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector. Irrespective of your size we wish to support you to maximise the benefits you could achieve through our specialist professional advice.