# Charity insolvencies set to rise under sector pressure

- Link: https://fundraising.co.uk/2016/03/02/charity-insolvencies-set-to-rise-under-sector-pressure/
- Published: 2016-03-02T14:10:51+00:00
- Author: Melanie May

**Insolvency trade body [R3](https://www.r3.org.uk/) 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.

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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.”

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