New research confirms more tough times to come for the charity sector

While many businesses are starting down the road to recovery after the recession, new research by the UK Charity Commission indicates things are only set to get worse for charities - with crippling public sector funding cuts looming. 

With the challenges of increased public hardship persisting since the downturn, many charities now face a two fold struggle – cutting their budgets to accommodate lower levels of funding, whilst striving to cope with the increasing pressure on their services.

The independent research shows that almost a quarter (24%) of charities with an income of £100,000 or more consider public sector funding to be their most important source of income. Not surprisingly with many service contracts between charities and public sector bodies set to end in March next year, over a quarter of organisations expect funding to decrease over the next 12 months.

The findings show that the situation has been growing worse for charities as the downturn drags on – in the recent survey 59% of charities claimed to have been affected by the economic downturn, an increase of 21% when compared to 2008. 29% of charities have seen a decrease in funding over the last six months, with many organisations drawing on their reserves to survive.

As charities struggle, In Kind Direct becomes vital in making every penny they have count. Receiving donated products through In Kind Direct means that organisations save money on the things they need to run their operations.

One charity that is already being hit by cuts is Women’s Aid – Fortalice. Arlene Cochrane, Director at the branch says: 

‘We always need funds, and last year local authorities started making cut backs - so any savings can make a big difference to our budget. With 22 self contained flats at the centre, many essentials, particularly things like nappies, become hugely expensive in the quantities that we need them. We save a lot of money on running the service by using In Kind Direct.

We provide a welcome pack for women and children that come to us. The pack will contain things like toiletries and personal care products, which are also topped up during their stay. All these things are of great value to those who have been forced to leave their homes, sometimes without many possessions. We couldn’t provide the same service before using In Kind Direct as these products are just too expensive on the high street. We can use the money that we save in other areas; providing services that our core funding just doesn’t cover.’

Charities across the UK have never needed your goods donations more. Making one donation to In Kind Direct can benefit thousands of fantastic causes across the UK, helping them to stretch their budgets, and meet the growing demands for their service.

See the UK Charity Commission website for the full report on the economic survey for charities.

 

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