Government urged to act as small charities pushed to brink
Melanie May | 19 June 2023 | News
This Small Charities Week (19 to 23 June), the government is being urged to take action to better support the sector’s smaller organisations as the cost of living crisis adds to the pressure they are under.
Lloyds Bank Foundation and small charities Pembrokeshire FRAME and Carriers of Hope say that while the Government did announce some £100mn in March’s Budget, months on there is still no clarity on when, how and to whom it will be paid out. This money, they say, is very welcome but also needs to be backed up by longer term change to support small charities including:
- Ensuring local authorities have the resources they need for local services.
- Supporting and challenging local authorities to ensure funding and commissioning arrangements are easy for small charities to access and that any contract and funding arrangements are uprated to reflect inflation and rising costs.
- Continuing support for small charities to meet their energy bills and costs.
- Engaging with small charities to hear and understand the solutions they have to key issues facing the country and the concerns they face.
Duncan Shrubsole, Director of Policy, Communications and Research at Lloyds Bank Foundation, said:
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“Time and again we’ve seen the value that small charities add to our communities, throughout the pandemic and the cost of living crisis. As more and more people are struggling to make ends meet charities have been there for people with nowhere else to turn to. These charities have kept people safe, cared for their health and wellbeing, provided a place to stay, food, warmth, and showers. Yet these same charities are facing their own crisis as funding sources dwindle. We need better support for small charities right across the funding landscape from putting social value at the heart of commissioning and procurement of public services to providing long term, flexible and unrestricted funding and adequately resourcing small and local charities.
“Small charities are the pillars of strong, connected communities. It’s time to recognise their true value and give them the means to continue their essential work. Our communities depend on it.”
According to Lloyds Bank Foundation the main challenges cited by small charities is lack of funding, decreasing public donations, increased need for services, and higher running costs.
It says that of the 159,041 voluntary organisations in the UK, 96% are small charities, and quotes SmallCharitiesData.org, which shows that small charities receive just 17% of charity sector funding, with this share of sector income declining year on year. Government income, it says, makes up 21% of small charities’ income but this has also been declining year on year.
Pembrokeshire FRAME Chief Officer, Paul Hughes commented:
“Small charities have had to reduce operations over the past year due to lack of funding, even as demand for services like food banks, homeless shelters, and mental health support has skyrocketed. We are being pushed to the brink. The communities we serve are in dire need but may have no choice but to turn people away due to lack of resources. Last year we saw our fuel costs double from £1k to £2k per month. Funding is a main priority.”
Carriers of Hope CEO Sue Sampson, said:
“Our average attendance is 75 families a week. Clients receive one bag of food for which we charge £5. But the cost to us has gone up to £30. Despite receiving some fantastic funding, the need for money and food donations is greater than ever. At current food prices we predict a £30,000 shortfall for food purchases going forward.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.