Charity donations fall as demand for their services grows
14 September 2008
Results of a survey
of charity chief executives released today by the Charities Aid
Foundation (CAF) and the Association of Chief Executives of the
Voluntary Sector (acevo) suggests that the effects of the slowing
economy are having a huge impact on charities.
The poll asked CEOs of small, medium and large charities for
their views on the slowing economy and how this has impacted on
their charity over the last 12 months. The findings show that 72
percent have seen demand for their services increase. Almost a
third of the charities surveyed (30 percent) have seen individual
donations fall and a further 30 percent have seen no significant
change over the same period.
Inflation is also impacting on charities with 71 percent seeing
their costs increase. A clear majority (88 percent) of CEOs expect
charity income to drop over the next 12 months and three quarters
(75 percent) believe the country will enter an economic
recession.
Charities are reacting in a number of ways. Nearly a third of
charities (29 percent) have made staff redundancies. Over half (56
percent) have limited staff pay increases. Fundraising activity has
been ramped up in 77 percent of charities. Meanwhile, 63 percent
have increased grant applications.
Dr John Low, Chief Executive of the Charities Aid Foundation and
Chairman of acevo commented on the findings: “This research reveals
the economic quandary that many charities are facing – increasing
costs and demand for their services against a backdrop of static or
declining public donations.
"Although one answer would be for everyone to give more, we
estimate that around £700 million is wasted in unclaimed tax. If
every person who pays tax made their donations using Gift Aid, this
would provide a lifeline for many charities in the current economic
climate."
Media Contact
James Ketchell
T: 0207 832 3014
Out of office: 07740 449 491
E: jketchell@cafonline.org.
Mandy Pursey
T: 0207 832 3012
Out of office: 07740 449 491
E: mpursey@cafonline.org.
Notes for editors:
- The Charities Aid Foundation (CAF) is an international charity
set up to help other charities by working with donors, companies
and charities to encourage and facilitate a culture of giving. They
do this by offering products and services that make giving easier,
tax efficient and help charities to make the most of donations
through their banking and fundraising support services.
- More information on CAF can be found at the website:
http://www.cafonline.org
- Acevo (Association of Chief Executives of Voluntary
Organisations) is the professional body representing third sector
chief executives in the UK, with over 2,000 members. See
http://www.acevo.org.uk for more information.
- Chief Executives were asked to give their opinions anonymously
in August and early September via an online survey on the recession
and how this has impacted on their organisation’s work. 43 Chief
Executives completed the poll.