# The recession is over but not for charities

- Link: https://fundraising.co.uk/2010/01/26/recession-over-not-charities/
- Published: 2010-01-26T11:19:20+00:00
- Author: Howard Lake

I’m going to state the obvious. The recession is officially over, but that does 
not mean that charities can start to breathe easily. In fact, my Cassandra-like 
view is that the recession, or at least its severe impact, has hardly got started
in the charity sector.

First, there is the continued increased demand on many charities’ services. That
won’t ease off quickly.

Secondly, and more importantly, are the public sector funding cuts that kick in 
from 2011. If anything, the sector (or parts of it) still have one more ‘good’ year
to go. And I accept describing the period 2008-10 as ‘good’ will strike many as 
odd.

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What can we do? Fundraise as hard, as effectively, and with as much innovation as
possible. Fundraisers and donors will get charities through the hard years ahead.
A daunting privilege.

Some of my thoughts seem to be backed up by John Low, Chief Executive of [Charities Aid Foundation](http://www.cafonline.org),
who commented on the end of the recession today.

“We cautiously welcome the news that the UK has emerged from the longest recession
since the Second World War”, he said, “yet Charities are far from out of the woods.
They continue to experience unprecedented demand from a society under immense pressure
and anticipate this will increase yet further as public services are cut back to
repair government finances. Meanwhile, the economy and donations remain well below
pre-recession levels.

“There are still many unanswered questions. For example, how long will it be until
donors start to feel able to give as much as they gave in 2007 or more? What’s going
to happen to charities after the election and the inevitable government spending
cuts? Will inflation and rising interest rates have an adverse effect on both charities
and the recovery?

“With such uncertainty over the coming months and perhaps years, it will be some
time before the sector regains its confidence and can truly claim to have seen the
end of the recession.

“Charities will need to continue to work hard, to innovate continuously and increase
efficiencies as well as ramp up fundraising efforts for some time to come.”

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