Service demand will continue to rise in 2020 with income generation an ongoing issue
Melanie May | 17 December 2019 | News
The vast majority of charities – 85% – expect demand for their services to grow over the next two years, with 95% concerned over income generation, according to Charity Bank’s latest State of the Sector report.
Released today (17 December) the State of the Sector report surveyed 182 social sector leaders and shows that 86% are concerned about future grant funding and 82% doubtful they can sustain donations over that period. Looking ahead however at possible income streams, 62% of respondents see social investment as an opportunity to secure new funds.
Technology is highlighted as another area which could deliver income generation for the sector over the next few years, although 58% of those questioned saw technology limitations as a challenge for next year.
“The social sector is entering this new decade under a cloud of uncertainty, and with the majority of organisations worried that funding will be more difficult to come by, many are looking at alternative ways to generate income and this can increasingly involve repayable finance. Almost two-thirds (62%) of the organisations we spoke to see social investment as an opportunity for growth. With the recent launch of the Impact Investing Institute, we’re also hoping that social investment will increasingly be seen as a great opportunity for investors that care about the impact that their money can have.”
“Technology is advancing at a rapid rate and could benefit the sector hugely – beyond making it easier for people to donate. However, as our research shows, lots of the organisations we work with are struggling just to fund their basic operating costs, let alone grow the provision of their services. While investing in technology can feel like a massive up-front cost and is not without risk, it could ultimately improve the services that charities and social enterprises are able to offer, enriching communities and offering a strong return on technological investment for the social sector.”
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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.