Survey finds that charities expect to lose around £12.4bn in one year
The charity sector expects to lose around £12.4bn or 24% of their total income this year, according to the results of a recent survey.
The predicted loss comes as charities attempt to grapple with the impact of the pandemic and social distancing measures.
The survey was conducted by The Chartered Institute of Fundraising (IoF) and Charity Finance Group (CFG), NCVO and was supported by PricewaterhouseCoopers.
On average, respondents to that survey reported that they were expecting a reduction of 24% to their total income for the year, which would mean a £12.4bn loss of income if the average was applied to the sector as a whole.
The survey found that during lockdown (between 23 March – 12 May 2020):
- Charities received 29% less income than they had budgeted for
- 84% of charities reported a decrease or a significant decrease in their total income
- 92% of charities reported a fall in trading income during the lockdown with just 5% reporting that income from trading had increased
When looking at the year ahead, charities:
- Expect to see their total income significantly reduced, with their total income on average 24% lower than previously forecasted
- Are planning on an average fall of 57% on trading income
- Have revised their voluntary income for the year down by an average 42%
“This new research shows that the impact of coronavirus is going to have a hugely significant impact on charity finances for the year ahead,” said Peter Lewis, Chief Executive of the Chartered Institute of Fundraising.
“With social distancing remaining in place for the foreseeable future, and an exceptionally difficult time ahead for the wider economy, the fact that the charities who responded to the survey are planning for a loss of almost a quarter of their total income is extremely worrying.
He said that the government should review and enhance its emergency support for charities, in order to provide a further bespoke package of support and an extension to the Job Retention Scheme that specifically support those charitable activities which are still unable to take place.