Due to the combination of increasing demand and the decreasing income it is estimated that a funding gap of around £10bn has been created across the charity sector over the past six months. Recent research conducted before the second lockdown was announced showed that around 10% of charities are likely to close and 80% are predicting that they will not deliver on their planned objectives. The second national lockdown will almost certainly not help improve these figures, especially with many charities scaling down their workforce with the Job Retention Scheme as they await calmer waters which will hopefully come in early 2021.
Job Retention Scheme Extension
Due to pressure arising from a second national lockdown, the government has committed to an extension of the Job Retention Scheme until March 2021. Furthermore, businesses in England that are forced to close may be eligible for up to £3,000 a month to cover costs (via the Local Restrictions Support Grant). However, this has fallen under some criticism in the charity sector with many arguing that charities, in particular, should be encouraged and assisted to operate more during this difficult time. Some believe that scaling down the charitable workforce is not in the nation’s best interests and will impact local communities. More difficult operational decisions are on the horizon for many and there are no easy answers either way.
How can we help?
At Hawsons we have a dedicated team of 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.
More from our charity experts
You can find all of our latest charity sector news and newsletters here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
Free initial consultation
0114 266 7141