Small charities are under “sustained pressure” with income generation the top challenge, according to research from the Cranfield Trust.
Two-thirds of charities, funders and volunteers reported income generation and fundraising as the most significant challenge for small charities in response to the trust’s survey.
The trust, which provides pro bono management support to charities tackling poverty, conducted a survey in March with 209 voluntary organisations, 105 volunteers, 37 funders and 17 of its staff and associates.
While income was a top concern, succession planning, governance and strategic clarity were flagged as issues by charities, with about a quarter of those surveyed anxious about these areas.
Most volunteers cited strategy and long-term planning as a pressing management and leadership challenge.
Meanwhile, just under half of funders expressed concern about leadership capacity and wellbeing, compared to more than a quarter of volunteers.
The vast majority of the Cranfield Trust’s staff also reported income generation and fundraising as their top concern.
Unease over digital systems and infrastructure was the lowest among all four stakeholder groups, but 22% of charities and not-for-profits still regarded this as a concern.
As part of its executive summary, the trust said: “Charities are facing sustained and compounding pressure.
“Financial uncertainty remains the most pressing concern, but it does not sit in isolation.”
This comes nearly a year after the trust published a five-year review warning that a lack of succession planning could leave smaller charities in crisis.
Training needs highlighted
Voluntary organisations chose financial sustainability and income generation as the most pressing training and development need for small charities.
Some 67% selected this area, with most funders also highlighting the issue as needing urgent attention.
Charities also highlighted organisational resilience and risk management, digital capacity and systems as their key training priorities.
Dan Francis, Cranfield Trust chief executive, said: “Charity leaders are working incredibly hard in challenging circumstances, often without the specialist skills or resources they need around them.
“Our findings have highlighted the importance of human-led, relational support that provides a trusted space, insight and reassurance when it is needed most.”
Francis also thanked nfpResearch for providing his charity with pro bono support, something the report found did not happen enough in the sector.
