Charities that survived the difficult winter continue to struggle to meet costs and provide for those that need them, despite a more positive economic outlook for the UK. More than 600 charity leaders were surveyed in April and May 2023 from across the UK, and results show that charities have entered a protracted period of rising demand, increased costs and falling donation income.
Four-fifths (81%) of charities say that demand for their services has increased compared to a year ago, while fewer than two-fifths (38%) of charities have high levels of confidence that they can afford to meet the current demand for their services and only half (55%) of charities are confident they can meet their current overheads, including energy, rent and supplies.
Staffing is emerging as a major issue for many charities with three in five (60%) struggling to recruit or retain suitably qualified candidates or volunteers. Seven in 10 (70%) charities now say that the rising cost of living is affecting workforce morale, compared to 53% at the start of the year.
Neil Heslop OBE, Chief Executive of the Charities Aid Foundation, 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.”