# Cost-of-living crisis: more than half of charities worried about survival

- Link: https://fundraising.co.uk/2022/11/30/cost-of-living-crisis-more-than-half-of-charities-worried-about-survival/
- Published: 2022-11-30T07:17:10+00:00
- Author: Melanie May

**A Charities Aid Foundation study of almost 700 charities across the UK shows that
more than half are worried about their ability to survive due to the rising cost
of living. This has climbed from just over a third (35%) in the six months since
April.**

[CAF](https://www.cafonline.org/)’s research found that charities are running out
of options to continue to meet the high demand for their services, such as providing
food, and mental health and disability support – while experiencing falling income
and rising operating costs themselves. Only half (49%) of the charities surveyed
in November feel confident that they have the funds to meet current demand for their
services, compared to 58% in October.

As a result, some charities are cutting back on services, with almost a quarter (
24%) of those surveyed saying they have done so but now have no room to cut further.

## Advertisement

More charities (51%) are also using their reserves to cover core costs. In comparison,
in November 2021 at the height of the pandemic previous CAF research found that 
two-fifths (40%) of charities used their reserves to help them through.

Neil Heslop OBE, Chief Executive of the Charities Aid Foundation, said:

> “Charities are running out of options, forcing them to rely on their reserves 
> and cut back on the services they provide. This research provides stark evidence
> about how the sector is responding to the triple threat of soaring demand, falling
> donations, and rising costs.
>  
> “Charities are at the heart of our communities and are carrying the weight of 
> the worst effects of the cost-of-living crisis. The Government needs to recognise
> the critical role that charities are playing to care for those who are most vulnerable
> in our communities. As a start, these organisations should be placed first in 
> the queue to receive additional support for energy bills from April.”

The research also found:

 * Falling income:** **Declining income from fundraising is the primary concern 
   for two-thirds (67%) of charities as households cut back to cover their own bills.
 * Rising operating costs: Inflation is driving up running costs for charities. 
   Nearly three-fifths (58%) of charities say their most pressing concern is increasing
   costs, such as energy.
 * Soaring demand:** **Charities are having to do more with less as an increasing
   number of families rely on their services. In November, nearly two in three charities(
   63%) report that demand for their services has increased compared to this time
   last year, including a third (33%) who have seen demand grow significantly.

CAF has launched a [cost-of-living resource hub](https://www.cafonline.org/charities/resource-hub)
with information for charities and funders to help them navigate the challenges.