There is currently a greater need to weigh up the equation in looking ahead. There are continued pressures in the charity sector, at a time when many charities are exploring different ways to make a difference.
There has been an adoption of new strategic focus areas. Restructuring has taken place for a number of charities. Talk of charity closures, charity mergers – particularly due to financial distress – and examples of financial warning signs in the charity sector have been more pronounced. The need for greater resources comes alongside growing costs and increased charitable demand.
Decision-making
It is increasingly a balancing act, and this is not easy to navigate in the current environment. This resonates with a recent PwC publication on how to Be a Better Decider. This highlights issues facing decision-makers, including climate change, technology and social and economic disruption, which should also be considered by charities. In responding to this, charity leaders and trustees can retool their strategic decision-making in a period when the need for reinvention is increasing. The imperatives are to: use process, not outcomes, to judge the quality of decisions; foster a culture of trust and collegial dissent; and leverage uncertainty for competitive advantage.
There has been an uptick in the level of economic activity, with the Office for National Statistics (ONS) reporting that the UK economy grew by 0.5% in February 2025, following no growth in January 2025. This is a positive sign, although the impact of new global trade tariffs will need to be closely monitored as the ramifications unfold. There will undoubtedly be implications for the economic landscape and supply chains. The International Monetary Fund now expects UK growth of 1.1% this year, down from 1.6% which it was predicting in January 2025.
The consumer price index (CPI) rose by 3.4% in the 12 months to March 2025, down from 3.7% in the 12 months to February 2025. This remains above the Bank of England’s target. The annual growth in regular pay from the ONS was 5.9% in the three months to February 2025. Earnings growth remains relatively strong, although the number of vacancies continues to fall.
Daniel Chan is partner and charities leader at PwC
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