Small charities need not suffer from credit crunch

Fundraising | Celina Ribeiro | 25 Nov 2008

Small charities could see donations rise in spite of wider economic contraction, according to a new report backed by the Community Foundation Network (CFN).

Matthew Bowcock (pictured), incoming chair of the CFN, suggested that dire predictions about a recession leading to a fall in voluntary income to charities may be unfounded. "There have been numerous reports which suggest that many small charities are facing a financial crisis. This need not be the case," he said.

Speaking at the CFN's annual general meeting on Wednesday 19 November, Bowcock backed the recommendations of a report by think-tank the Policy Exchange released on the day. The report, based on interviews with 30 major donors, found that many City donors will likely be favouring local and community organisations in their philanthropy during the current and ongoing period of economic hardship.

More giving during recession

Past experience, Bowcock argued, would suggest that the report's predictions were accurate. "Community foundations managed initiatives that saw increased charitable giving through the recession of the early nineties and through the teeth of the dot-com crash," he said.

"Where major donors become involved with a local community then our experience is that they respond first and foremost to increased demand, rather than a squeeze on finances."

The report also echoed other recent predictions that tightening budgets among philanthropists is likely to lead to a more results-driven approach to giving.

But while encouraging major donors to continue giving, both the Policy Exchange and Bowcock called for government action to facilitate a steady flow of donations to small charities.

Bowcock said that government needs to reduce the red tape burden on charities, while endorsing recommendations from Policy Exchange, a centre-right organisation, for tax cuts for organisations and individuals who volunteer time or loan buildings and for tax incentives for investment in social causes.

Who's Who: Celina Ribeiro

Comments

[Cancel] | Reply to:

Name *

Email *

Organisation

Job Title

Comments *

Verification *

* Please read our Community Standards

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.