A majority of Black-led charities and social enterprises do not think they will last beyond six months, according to a recent survey.
The report by Do it Now Now looked at the impact of the cost-of-living crisis on Black-led charities and social enterprises.
Based on their current financial standing, most of the 93 respondents said that they could not operate beyond six months.
Around nine in 10 were concerned about the cost-of-living crisis, including seven in 10 who were extremely concerned.
Moreover, over four in 10 feel that funders do not have their best interests in mind compared to one in eight who believe they do.
Half of the respondents had not received any support to help mitigate the impact of the cost-of-living crisis, while three in 10 did receive support in the form of grants and loans.
Around half of the respondents had been operating for more than six years, and a quarter between six and 10 years.
Increased operating costs, decreased revenue and staff retention and recruitment were among the most frequently cited challenges.
Two-thirds of respondents stated that the cost-of-living crisis negatively impacted their ability to invest in their organisations and expand, as they had to divert funds to cover rising costs.
‘Charities want unrestricted funding’
Do it Now Now states: “Unsurprisingly, the thing organisations most wanted funders to prioritise is unrestricted funding.
“The cost of living crisis has typically affected operational costs, the most difficult cost for organisations to find funding for.”
Most respondents to the survey, conducted in April this year, were micro organsations, having fewer than 10 staff.
