Charities and Corona Virus

Whilst the UK has been in lockdown since March 2020 the voluntary and not for profit sector has seen income significantly impacted due to fundraising events being placed on hold or cancelled altogether and the general public having less disposable income to freely donate.

The Institute of Fundraising have reported that the projected voluntary income lost is 48% and a third of total income lost meaning uncertain times ahead for some organisations.

Some charities have been able to access government support for wages via the Job Retention Scheme however as this scheme is coming to an end in the next couple of months, charities will need to return to paying 100% of wages unless redundancies are made. Without any further support, and whilst there are still social distancing restrictions in place, generating unrestricted funds through fundraising is still going to be a struggle unless they can come up with innovative ways to generate funds, either through socially distanced or virtual events.

In these unprecedented times, some charities have had to close or put a hold on providing their services due to lack of funding or the risk of closure, leaving beneficiaries at risk or without anywhere else to turn in some cases.

Local councils and grant giving organisations have been issuing grants to allow charities to access some funding and help mitigate the risk of closure or financial difficulty however, in some circumstances the applications have been long winded and difficult to navigate and without extensive or in-depth knowledge on funding applications, it has caused confusion or errors in the applications.

As the UK in now in a recession, many corporate companies may face financial difficulties as they try to continue trading and continue to pay all their current employees meaning, redundancy maybe on the cards or business closures. This not only impacts on corporate donations for charities and not for profit organisations but also the tightening of purse strings in the run up to Christmas and beyond meaning the impact of the Corona Virus pandemic maybe felt for a long time and take time to recover from.

Unfortunately, this may see some organisation close their doors for the final time leaving a gap in vital services and support. If you are running a charity or a voluntary organisation and would like to speak to an advisor or book one of our no obligation, no cost meetings, please contact Sophie Holmes on 01482 427360 or e-mail at sophie@360acccountants.co.uk.

 

SidebarCTA
SidebarCTA

Get a call back

Call Back
Sending
Menu