Share

CAF warns one in six charities could face closure in 2013

John Low, chief executive, CAF
News

CAF warns one in six charities could face closure in 20132

Finance | Kirsty Weakley | 10 Dec 2012

Charities are under more pressure as a result of the economic climate, according to a recent poll, with almost half of respondents saying that they dipped into their reserves last year and one in six believing they may face closure in 2013.

The Charities Aid Foundation (CAF) commissioned the poll of 252 senior charity sector workers with 49 per cent of respondents reporting that they had used reserves to cover income shortfalls. Just over a quarter of respondents say that they have already cut frontline services and 25 per cent have made staff cuts.

Looking ahead, 17 per cent said that they may face closure in the next 12 months and 45 per cent of charities believe that they will have to scale back their work in the next year. Some 90 per cent think generating more income will be the biggest challenge.

Respondents blame the current state of the economy for the gloomy outlook with 81 per cent believing that the current economic climate is causing the sector to be in "crisis". Some 85 per cent are “concerned for the future of UK charities” while 68 per cent believe the economic downturn has already affected the services that their charity provides. Meanwhile 35 per cent said that they could see the economic situation improving in 2013.

John Low (pictured), chief executive of CAF said: “Times are tough and people have less money to donate to charities. This combined with significant public spending cuts and increased demand for charity services, is having a shocking effect on many charities, calling into question their very viability.”

Last month CAF and NCVO launched a new campaign – Back Britain’s Charities – after NCVO’s annual UK Giving Report found that there had been a £2.3bn fall in individual giving.

The campaign is calling on individuals, government and businesses to do more to support charities and has so far attracted 1,314 pledges of support.

Government response

A Cabinet Office spokesman said: “We know it is a very challenging environment for charities, especially for those previously dependent on taxpayer funding, but the sector cannot be immune from cuts.

“The government is committed to strengthening the sector through programmes such as the £10m Investment and Contract Readiness fund and the £65m Advice Services Transition Fund.

“Furthermore, we have introduced new ways for the sector to finance itself through Big Society Capital, capitalised with £600m, giving charities access to affordable loans and investment to grow, so they can do more.”

 

Dave Robetson
13 Dec 2012

Will we need to rethink the way we go about living? Surely there is something unhealthy in the way we are living, if we are creating situations where we need charities.

Carl Allen
10 Dec 2012

It can stretched a bit here and and a bit there but as always charity is not scalable.

And when it finds itself being tortuously stretched, then there is a signal that charity sends.

But it is not a signal for more charity as more charity does not meet the need.

It is a signal about the imperative need for other types of voluntary and DIY action.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Save the Children launches £1m fundraising appeal for search and rescue boat

26 Aug 2016

Save the Children UK has launched a £1m fundraising appeal to outfit and support a search and rescue...

Royal British Legion criticised by FRSB after fundraisers misled public

25 Aug 2016

The Royal British Legion and a face-to-face fundraising agency breached the Code of Fundraising Practice,...

Pell & Bales goes into liquidation with the loss of more than 100 jobs

24 Aug 2016

Telephone fundraising agency Pell & Bales has been placed into liquidation by its creditors, less...

Commission appoints interim manager to dissolve charity being investigated over investment tactics

26 Aug 2016

The Charity Commission has appointed an interim manager to oversee the winding up of the Park Charitable...

Association of Charitable Foundations' chief executive will step down this year

25 Aug 2016

David Emerson is stepping down as chief executive of the Association of Charitable Foundations later this...

Charity Commission should ‘avoid the temptation to look tough’ when it starts disqualifying trustees

24 Aug 2016

Other infrastructure bodies have joined NCVO in raising concerns about how the Charity Commission might...

Free HR system to launch for charities

25 Aug 2016

A free human resources system designed for charities will launch next month and is currently being trialled...

RSPCA ranked fourth in global charity social media brand index

19 Aug 2016

A new social media index has said that the RSPCA has the fourth best digital charity brand globally, with...

Charity Commission retracts story which indicated it would no longer publish all accounts

18 Aug 2016

The Charity Commission has published a news story announcing it will no longer display documents received...

Join the discussion

 Twitter button

@CSFinance