Over half of benevolent funds warn that the boundary between state funding and their funding is becoming increasingly blurred, finds new research from the Association of Charitable Organisations.

The research, Changing for Good, looked at the activities of 51 benevolent funds over the last financial year. Some 73 per cent said that their grant levels have increased or stayed the same. And 30 per cent had moved or planned to move away from long-term payments to short-term or one-off grants.

All respondents expressed concern about the impact of welfare reform with 50 per cent introducing new programmes in response to the economic downturn.

Benevolent funds ‘part of welfare reform strategy’

Some 60 per cent said the boundary between state funding and discretionary funds is becoming increasingly blurred. One commented how “it is now usual to receive applications from local authorities for items which would have previously been funded by them". Another said how it is “harder to refuse what should be state responsibility. The government appears happy to use us as part of their welfare strategy. We have to fill the shortfall where government funding is reduced or withdrawn.”

The survey also revealed that 65 per cent of respondents are seeing evidence of beneficiaries taking out payday loans. The Association of Charitable Organisations is working with the Payments Council on a mobile payments project to enable charities that give grants to expedite one-off payments to individuals in their homes utilising mobile technology.

Elsewhere, 54 per cent have entered into a collaboration or partnership, and 21 per cent have completed or are considering a merger. Some 57 per cent measured their impact, and 67 per cent say they consult their beneficiaries for feedback.

The research also had an open question on the views on the term ‘benevolence’. Only 22 per cent were positive about the term. Common views on the term included old-fashioned, Victorian, Dickensian, paternalistic, antiquated, misunderstood, dated and misrepresentative.

The research also looked at the closure of the Charity Employees Benevolent Fund and said it is was a “poor reflection on the charity sector; that espouses the importance of looking after individuals in need when they refuse to look after their own”.

The Charity Employees Benevolent Fund closed last July after failing to garner enough support from the sector.