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

- Link: https://fundraising.co.uk/2020/03/31/coronavirus-charities-cannot-meet-surge-in-demand-without-urgent-government-funding/
- Published: 2020-03-31T08:38:02+01:00
- Author: Melanie May

**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.**

 

 

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The survey, ‘[Impact of COVID-19 on the charity sector](https://www.institute-of-fundraising.org.uk/library/impact-of-covid-19-on-the-charity-sector-briefing-from-the/)’,
by the [Institute of Fundraising](https://www.institute-of-fundraising.org.uk/home/)
in partnership with the [Charity Finance Group](https://www.cfg.org.uk/) and [NCVO](https://www.ncvo.org.uk/)
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 report a projected loss of 48% to their voluntary income, & a third
   wiped off from their total income
 * 52% of charities have reduced existing or previous levels of service, with a 
   further 12% intending to in the future
 * 83% say that the most important thing for their organisation’s sustainability
   over the coming 3 to 6 months is access to emergency grant funding
 * 84% of charities think their organisation could play a role in responding to 
   the coronavirus outbreak, with the majority saying that government funding was
   needed to help them to do so
 * 91% of charities surveyed have already or expect to have their cash flow disrupted,
   with 62% indicating that these would result in reduced charitable activity

 

 

 

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.”

 

 

 

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.”

 

 

 

 

 

 

 

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