Charities in the UK face unprecedented challenges according to the NCVO’s Chief Executive Sarah Vibert, who has launched a campaign to support charities and voluntary organisations through these difficult times.

Referring to the current period as a ‘Cost of Giving Crisis’, the NCVO has pointed out that the wider cost of living crisis is severely impacting charities, with rising costs, falling income, and increased demand for services.

A survey conducted this September shows:

• 1 in 5 charities might ‘disappear’ this winter, potentially leaving those reliant on their services vulnerable.
• 85 per cent of charities anticipate this winter to be as challenging, if not more so, than the previous year.
• 27 per cent of charities already believe they will be unable to meet the growing demand for their services.

Origins of the Crisis

Insights from the UK Civil Society Almanac highlight the pandemic’s role in exacerbating the sector’s vulnerability to the ongoing economic turmoil.

Charities are currently facing a ‘triple threat’: declining income, rising costs, and increased demand for services. These pressures, despite the sector’s resilience and creativity, are overwhelming.

The NCVO survey, which gathered responses from over 580 members, revealed that costs are escalating in various areas, including goods and services, energy bills, wages, insurance, property maintenance, and rents.

With most of these costs being non-negotiable, only 35 per cent of charities believe cost-cutting can help them navigate this crisis. As a result, approximately 24 per cent of charities are preparing to scale down their services.

What Can Be Done?

NCVO is not only raising awareness but also providing practical support for the sector through guidance, training, and webinars, accessible via their Cost of Giving Crisis support portal.

It is also calling on Government intervention, as it believes Whitehall must ensure that contracts and grants for charities are adjusted to reflect the increased costs of service delivery. With over £16.8 billion in the sector coming from government and public sector contracts, the failure to adjust funding could mean people losing access to vital services.

While monetary donations are essential, nearly half of the charities are looking to recruit more volunteers to tackle the crisis as well and the NCVO is encouraging the public to contribute their time as well as their financial donations.

The critical need for help

The Cost of Giving Crisis campaign is a rallying cry for support for the charitable sector. It is important to remember that charities provide crucial support to communities, especially in times of need.

The situation calls for a collective effort from the Government, the public, and the sector itself to navigate these challenging times.

If your charity is struggling due to these challenges, please speak to our team for advice.