Most charities using reserves to cover core costs
05/12/2022 - According to a recent article (link) published in Civil Society.co.uk (05/12/2022), a third of people in the UK and Ireland are likely to cut down the amount they give to charity due to increases to their energy bills, according to new research.
Most charities using reserves to cover core costs, according to another article (link) published in Civil Society.co.uk.
Pro Bono Economics : 'High inflation impact on charities’ costs and finances'
Pro Bono Economics uses economics to empower the social sector and to increase wellbeing across the UK.
The latest Pro Bono Economics report ('The cost of giving - What UK charities need to know about inflation', sept. 2022) describes seven major issues caused by the current inflation:
- High inflation is expected for some time
- Energy prices affect costs, volunteers and beneficiaries
- Everyday goods are becoming more expensive
- Pressure on staff costs will be difficult to manage
- Inflation will eat away at the value of donations
- Grant funding and contracts will also be affected
- Inflation will also eat away at reserves
The falling value of donations due to inflation, which is forecast by the Bank of England to peak at 13% later this year, is exacerbated by increasing demand for charity support as a result of the cost of living crisis.
Charities and donors can both take some action
The second part of the Pro Bono Economics report (link) summarizes CAF’s top tips for charities and donors looking to act on inflation’s impact :
British charities call for emergency funding
Charities are reporting a 300% increase in energy costs. NCVO is therefore calling on the government to provide more support to the sector. This lobbying includes includes urging the government to provide more funding for charities as part of an emergency budget.
See more at : 'NCVO calls for emergency funding as charities report 300% increase in energy bills'.
- Civil Society - 'NCVO calls for emergency funding as charities report 300% increase in energy bills' (link)
- Civil Society (nov. 2022) - Charities facing ‘cliff edge’ without further energy bills support (link)
- Civil Society (dec. 2022) - A third of people in the UK and Ireland are likely to cut down the amount they give to charity (link)
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