3 August 2012
Community sports clubs and charities in England and Wales are
facing a long-term slump in income – despite efforts to secure an
‘Olympic legacy’ as a result of the 2012 Games, according to new
research by the Charities Aid Foundation (CAF).
Analysis by CAF reveals that the income of local sports clubs
and charities has fallen by 15% in real-terms since 2004 – the year
before the Olympics was awarded to London.
The slump has hit grassroots clubs and charities with incomes
below £100,000 a year. But larger sports organisations, with annual
incomes of more than £100,000 have fared better, with a 3%
real-terms increase in funding since 2004.
CAF, which promotes charitable giving and provides financial
services and social finance to not-for-profit organisations, looked
at the financial returns made between 2004-2011 of community clubs
and charities listing their work as focusing solely on ‘amateur
sports’.
CAF’s analysis of financial returns from 1,624 amateur sports
clubs and charities which filed accounts each year between 2004 and
2011 reveals a bleak picture for community sport at a time when the
Government is keen to secure an ‘Olympic Legacy’.
The Sport and Recreation Alliance’s 2011 Sports Club Survey
highlighted the financial problems facing many smaller sports clubs
and charities. It found smaller organisations have little funds to
weather difficult economic times and are struggling to recruit and
retain members, making it even harder to generate sufficient income
to survive, let alone update their facilities to attract new
members
Richard Harrison, Director of Research at CAF, said: “The last
eight years have been tough for many grassroots sports clubs and
charities, despite the growing sense of excitement about the
Olympics and the desire to secure a long-term sporting legacy.
“The financial pressures facing many community charities,
running sports clubs, maintaining playing fields and keeping local
facilities open, mirrors the difficult financial climate facing
many charities as they grapple with a squeeze in income and
increasing demand for their services.
“The generosity of British people is matched only by their
enthusiasm for sport of all kinds. The spectacle of the Olympics is
a fantastic opportunity for people to come together, experience the
satisfaction of volunteering and support good causes as well as our
Olympic athletes.
“While larger charities have, on the whole, managed to stay
afloat financially, our research shows that we need people to keep
backing local sports clubs and charities as well, to ensure they
can continue to support grassroots sport, and all the other causes
we care about.”
Tim Lamb, Chief Executive of the Sport and Recreation Alliance
said:
“Our annual sports club survey is the biggest sports club research
of its kind in the country, and it’s telling us that there seems to
be a rather worrying vicious circle taking place. As membership
levels fall, club incomes drop. Clubs then reduce their spending
and investment in the club infrastructure is reduced. In turn, this
can make the club offer less appealing.
“Ultimately, this will make it difficult to retain or attract
members, and the concern is that if economic conditions worsen we
will lose many clubs that are a vital part of the fabric of our
communities, and with them, their facilities, expertise and a
generation of volunteers.
“It’s vital that local and central government work closely with the
sector to deliver the full potential of the Games in order to get
people more active.”
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