# Service demand will continue to rise in 2020 with income generation an ongoing issue

- Link: https://fundraising.co.uk/2019/12/17/service-demand-will-continue-to-rise-in-2020-with-income-generation-an-ongoing-issue/
- Published: 2019-12-17T10:12:48+00:00
- Author: Melanie May

**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](https://go.charitybank.org/uk-social-sector-report-2019)
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.

[Charity Bank](https://charitybank.org/)‘s report also shows Government policy continuing
to pose a challenge for 63% of respondents, while the sector is split on what Brexit
means for them. Almost half (49%) think it will present issues, while 46% are unclear
and 13% think it could create opportunities.

Ed Siegel, Chief Executive, Charity Bank said:

> “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.”

He added:

> “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.”

 * **[Barings converts dedicated charity fund to CAIF](https://fundraising.co.uk/2020/02/11/barings-converts-dedicated-charity-fund-to-caif/)**(
   11 February 2020)
 * **[The Alnwick Garden Trust launches Retail Charity Bond](https://fundraising.co.uk/2020/03/06/the-alnwick-garden-trust-launches-retail-charity-bond/)**(
   6 March 2020)
 * **[Growth Fund tops 400 investments in charities & social enterprises](https://fundraising.co.uk/2020/03/09/growth-fund-tops-400-investments-in-charities-social-enterprises/)**(
   9 March 2020)

![Loading](https://fundraising.co.uk/wp-content/plugins/page-views-count/ajax-loader-
2x.gif)

## Advertisement

 [⌊Posthub advert. You create the campaign. We'll handle the postal journey. Get started at post-hub.co.uk.⌉](https://fundraising.co.uk/ads/posthub-20261007-300x250/)