# Only 55% of charities confident they can meet current overheads

- Link: https://fundraising.co.uk/2023/06/26/only-55-of-charities-confident-they-can-meet-current-overheads/
- Published: 2023-06-26T08:15:00+01:00
- Author: Melanie May

**Charities across the UK are continuing to struggle to meet costs and the need 
for their services, CAF research shows. **

Four-fifths (81%) of charities say that service need has increased compared to a
year ago, according to its research with 621 charity leaders. Fewer than two-fifths(
38%) are confident that they can afford to meet it, compared to 54% back in January
in a similar CAF survey.

With inflation still high, just 55% of charities are confident they can meet their
current overheads, including energy, rent and supplies. This is up from 50% in January’s
research. Nearly half (46%) have now used reserves to cover shortfalls in income.
However, a third (36%) of charities say they have a plan in place to help them face
the cost-of-living crisis, with two-fifths (43%) having asked funders for help.

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Staffing is also an issue for many charities. Around half (53%) say they can afford
their current staffing levels, while three in five (60%) are struggling to recruit
or retain suitably qualified candidates or volunteers, a significant increase from
two-fifths (43%) in January’s survey.  Seven in 10 (70%) charities now say that 
the rising cost of living is affecting their workforce, compared to 53% at the start
of the year

Neil Heslop OBE, Chief Executive of the [Charities Aid Foundation](https://www.cafonline.org/)(
CAF), said:

> “Charities are still feeling stretched. They are worried about recruiting staff
> and struggling to meet demand for their help. Like the rest of us, they are having
> to adjust to inflation being higher – but they face the added challenge of people
> needing them more than ever, while donors’ incomes are squeezed.
>  
> “Britain can’t afford to have charities facing such uncertainty. We need a resilient,
> vibrant charities sector supported by a renewed culture of giving. That is why
> the UK needs for the Government to draw up a strategy for philanthropy and charitable
> giving to mobilise effort across society and business.”

 * **[CAF distributed record amount of over £1bn last year](https://fundraising.co.uk/2023/08/04/caf-distributed-record-amount-of-over-1bn-last-year/)**(
   4 August 2023)
 * **[Donors gave estimated £13.9bn last year – but fewer people giving](https://fundraising.co.uk/2024/03/25/donors-gave-estimated-13-9bn-last-year-but-fewer-people-giving/)**(
   25 March 2024)
 * **[Record £1.132bn distributed to good causes by CAF in last financial year](https://fundraising.co.uk/2024/09/04/record-1-132bn-distributed-to-good-causes-by-caf-in-last-financial-year/)**(
   4 September 2024)