Charities face perfect storm of hike in demand, slump in funding

 
Findings from our latest survey

5 June 2020

One in three UK charities faces a significant spike in demand for their services during lockdown, just as they see a fall in donations, according to a new survey.

The Charities Aid Foundation (CAF) survey of 416 charities was carried out May 21 and 22.

A third of those surveyed (35%) reported an increase in demand for their services since the UK entered lockdown in late March, a significant increase from 26% a month earlier.

Amongst those charities reporting an increase in demand, six in 10 said it had increased by more than a quarter, while one in four said demand was 50% higher than before the crisis hit.

Despite this increase, more than half of charities (53%) reported a drop in donations. Fewer than one in five (18%) said donations had increased.

Additionally, half of all charities surveyed (49%) said they had sought or received some form of emergency grant funding to get them through the crisis.

Susan Pinkney, Head of Research at CAF, said:

“Despite so many charities working flat out in the face of increased need, they are also facing a funding crisis as donations disappear.

“For many this is down to closed charity shops, cancelled fundraisers and a lack of collection tins on our streets.

“It’s worth perhaps reminding people how much charities rely on regular donors who use things like direct debit or employee payroll giving schemes to support charity every month. It is well and truly the lifeblood for the causes that we cherish and which has never been more valuable.”