A new report finds that charities in England have not seen the recovery experienced by the economy overall.
With sector income flat-lining since 2009, projections show a £4.6bn shortfall in income by 2018/19 – the result of cuts to government contract and grant income, tepid growth in donations from the public, and inflation. Small and medium-sized organisations have been hardest hit, with charities with incomes between £100,000 and a million pounds seeing the biggest falls in their income and assets.
See NCVO’s press release for more details and download link to ‘A financial sustainability review of the voluntary sector: change and adaptation in the voluntary sector as the economy recovers’. NCVO also has an overview article ‘A financial sustainability review of the voluntary sector‘.
The review was conducted by NCVO, Charity Finance Group, Institute of Fundraising, Locality, NAVCA and Small Charities Coalition. CFG has its own article ‘Financial sustainability won’t be easy for the charity sector‘, highlighting four tensions: Income generation versus charitable objectives, Short term demand versus long term sustainability, Income generation versus time, and Small and medium sized charities versus large charities.