# NPC research highlights charity & public sector vulnerability to Covid-19 crisis

- Link: https://fundraising.co.uk/2020/03/24/npc-research-highlights-charity-public-sector-vulnerability-to-covid-19-crisis/
- Published: 2020-03-24T09:00:23+00:00
- Author: Melanie May

**Charities and public services are more vulnerable to Covid-19 crisis than is currently
understood, according to research by charity think tank NPC.**

 

 

## Advertisement

 

The [NPC](https://www.thinknpc.org/) research found that the majority of charities
with public sector contracts cross subsidise those contracts with other funds, such
as donations from the public.

 

 

 

54% of the charities NPC surveyed delivered public sector contracts and 59% of these
said they are cross subsidising that contract with money from other sources such
as fundraising. And, it found, as fundraising, trading, or investment income fall–
with NCVO reporting charities are set to lose more than £4bn over 12 weeks as a 
result of the coronavirus outbreak – charities will not be able to afford to cross
subsidise these contracts.

 

 

 

This, the research suggests, may mean they are unable to deliver them, and vital
services fail, or government funding is placed under more pressure as it has to 
find a short notice new provider.

 

 

 

The early headline results come from NPC’s _State of the Sector 2020_ report and
have been released to help funders and charities understand the underlying challenges
in the charity sector, and help shape how government and funders target their support
to charities.

 

 

 

Other findings include:

 

 

 

 * Charity leaders reported doing more in almost every area than 2017 and so may
   have been spread thinly when the crisis hit. For example, in 2017 83% of charities
   said they were delivering services or products. In 2019/20 this rose to 89%
 * Less than half (47%) of charities believed that independent funders offered the
   flexible core funding which NPC expects will be vital to keeping them afloat 
   in the crisis
 * Charities’ confidence on their ability to use digital technology has dropped 
   by 11 percentage points to 59% from 70% since 2017. This may leave them struggling
   to shift services online to reach isolated people during quarantine and social
   isolation

 

 

 

NPC CEO Dan Corry said:

 

 

 

> “Charities are mobilising to help thousands of people across the country but they
> are also crying out for more help and support. Their income is collapsing just
> as people’s need to use them starts to grow. Our research reveals some underlying
> problems in the sector, which the crisis will undoubtedly exacerbate. The response
> both from policymakers and the sector to the crisis needs to take this pre-existing
> weaknesses into account, and make sure issues like the lack of core funding, the
> weaknesses on using digital technology and the cross subsidy of contracts are 
> not overlooked, or we could see charities fail and thousands of vulnerable people
> put at risk.”

 

 

 

The research was funded by [PwC](http://www.pwc.co.uk/charities), [Barrow Cadbury Trust](https://www.barrowcadbury.org.uk/),
[Lloyds Bank Foundation](https://www.lloydsbankfoundation.org.uk/) and [Odgers Berndtson](https://www.odgersberndtson.com/en-gb).

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