New research published today shows that charities are facing huge income losses due to the impact of the coronavirus pandemic and continuing social distancing measures.
The lockdown has devastated key sources of income such as public fundraising and trading.
Respondents to a survey commissioned by the Chartered Institute of Fundraising reported they were expecting a reduction of 24% to their total income for the year, which would mean a £12.4bn loss of income if applied to the sector as a whole. This is in line with other recent surveys such as a report published by ProBono Economics last week.
The survey published today finds that between the start of lockdown and the end of May:
- Charities received 29% less income than they had budgeted for;
- 84% of charities reported a decrease or a significant decrease in their total income;
- 92% of charities reported a fall in trading income during the lockdown with just 5% reporting that income from trading had increased.
The survey also indicates huge drops in forecasted income for the year from March, with charities forecasting an average drop in income of 24%. This is largely driven by a 57% fall in trading income (e.g. charity shops), and a 42% drop in voluntary income (e.g. public fundraising).
You can read the IoF press release and download the full report here
These massive financial losses are totally unprecedented. It’s not about charities – it’s about critical life-saving services that people depend on disappearing as charities cut back or go under. The government urgently needs to review and enhance its emergency support for charities – check out the #NeverMoreNeeded campaign website to see what you can do.