Charities have continued to see a increase in demand for their services over the past year, according to the latest Managing in the New Normal report.
Some 65 per cent of charities who took part in an annual survey experienced an increase in demand for their services in the last 12 months, despite one quarter of those saying they did not have the resources to meet these demands. This was slightly less than last year when 70 per cent of respondents said they had experienced an increase in demand.
Managing the New Normal 2016 is the latest in a series of reports released jointly by the Charities Finance Group, Institute of Fundraising and PwC, which has been produced annually since 2008 to chart how charities are coping with the recession.
One quarter of the 307 charities surveyed for the report between December and January said that “they did not have the resources to meet” the increase in demand.
The report also showed that a majority of respondents have reviewed their reserves policy in the past year, but 46 per cent decided not to change their current level of reserves.
The report states: "This is probably due to a reduced risk appetite in the wake of Kids Company and their well-documented lack of reserves to cover the provision of essential services.
"Charity Commission guidance on reserves also changed, after this survey was taken, which may lead to more charities increasing their level of reserves."
The report also indicates a significant increase in concern among respondents about media and public scrutiny of fundraising practices.
Some 83 per cent of respondents to the survey said that “public trust around fundraising practices was the biggest challenge for the sector”, while 79 per cent said that they were planning to explore new fundraising options in the next 12 months.
The report also showed that the last 12 months have taken their toll on morale within the sector. 58 per cent of respondents to the survey said that their staff felt “energised or optimistic”, compared to 61 per cent in 2015. Optimism about the future of respondent’s organisations has fallen to: down 10 per cent from the previous year to 64 per cent of respondents.
Some 85 per cent of survey respondents also said that they did not have the skills or resources needed to access or use social investment.
Caron Bradshaw, chief executive of Charity Finance Group, said: “Charities are facing a number of challenges both financial and reputational, but this survey is encouraging as it shows charities taking seriously the need to meet these challenges. We need to give charities the time and space to adapt and have confidence in charities ability to grapple with them”.
Peter Lewis, chief executive of the Institute of Fundraising, said: “This report shows us that the majority of charities have taken action to respond to public concerns about fundraising practices, and that the fundraising community is committed to achieving the highest standards”.
