Pessimism strong as sector faces public spending cuts 2

Fundraising | Celina Ribeiro | 5 Aug 2010

The announcement of government spending cuts has prompted widespread concern among charities, with half predicting income falls.

A survey of 100 not-for-profit organisations has found that half expect the government cutbacks to have a negative impact on their income, with one in five predicting falls of more than 10 per cent over the next three years.

Less than 5 per cent of those surveyed by software company Iris predicted that income could rise in the near future.

The government has regularly warned the sector that the current and impending cuts will have a significant impact on the sector, but has asked for charities to engage in dialogue and show patience.

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Karl Wilding
Head of Research
NCVO
6 Aug 2010

Things are clearly difficult for a lot of organisations at the moment. A heck of a lot of organisations. But I think we also need to remember that in a 'normal year' half the sector sees it's income fall. And half sees its income rise.

So these findings are perfectly normal.

[Reply]

Toby Ganley
Head of Policy
PFRA
6 Aug 2010

In the context of reduced funding from the state sector, and an expectation that they will play a leading role in the development of the Big Society, charities and other mission-driven organisations will need to consider ever more innovative and entrepreneurial ways to increase and diversify their income streams. This can and should include increasing their fundraising activities. Until economic circumstances allow for the full implementation of the unified licensing regime contained in Part 3 of the Charities Act 2006, face-to-face fundraisers continue to face an uncertain regulatory environment. However, PFRA self-regulation can offer high operating standards, while reducing administration costs for both central and local government; allowing charities to attract the voluntary income they will need to fill funding gaps, whilst significantly reducing the need for public resources to be spent on managing these activities. For more information on the PFRA, visit: www.pfra.org.uk

[Reply]

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