Charity insolvencies set to rise under sector pressure
Melanie May | 2 March 2016 | News
Insolvency trade body R3 has warned that charity insolvencies are set to rise as a result of the pressure faced by the sector.
R3 points to the latest criticism of charity fundraising tactics as adding further pressure at a time when charity finances are already under strain from cuts in local government spending and a fall in legacy income, amongst other factors.
R3 has seen a rise in the number of charities in financial difficulties over the past year, and expects the number of insolvencies in the sector to rise in the year ahead.
Matt Dunham, council member for R3 said:
“Charities have to strike a difficult balance – maintaining the focus on their mission but at the same time ensuring they are financially sustainable. If they concentrate too much on their charitable mission they risk running out of money, but if they become too commercial they risk a public outcry. The year ahead will be a really testing time for managers and trustees.”
Advertisement
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.