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Coronavirus: charities cannot meet surge in demand without urgent government funding

Melanie May | 31 March 2020 | News

The results of the Coronavirus Impact Study reveal that 43% of the charities surveyed have seen an increase in demand for their services coupled with a 48% decline in voluntary income.
The survey, Impact of COVID-19 on the charity sector’, by the Institute of Fundraising in partnership with the Charity Finance Group and NCVO was conducted this month and includes data from over 500 charities on the impact of the crisis on their organisations, analysed by PwC.
It shows:

Charities have been in conversation with the government about a package of support for the charity sector, and have again warned that without an urgent injection of swift, simple and substantial money many charities of all sizes will start to close their doors as soon as this week.
With fundraising events cancelled and public fundraising activity postponed for the foreseeable future, a significant proportion of the income charities rely on to deliver their work has been lost.
Peter Lewis, Chief Executive of the Institute of Fundraising, said:

“To ensure that charities are able to both maintain their existing services to people and to play their fullest role meeting the needs of our most vulnerable people we need a support package for the sector. Over the next 12 weeks charities will lose £4 billion in vital income that they would have received from the British public, at the same time as a 42% surge in demand for their services. They need urgent help to maintain and expand their services.”


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Caron Bradshaw, Chief Executive of Charity Finance Group, added:

“This situation is unprecedented in attacking every area of charity income, whilst increasing demand and costs, and is rapidly burning through reserves.  If the government doesn’t act now then the longer term impact on the economy, society and social well being will be devastating and almost impossible to recover from.”