Charities face £12.4bn coronavirus income drop

A report from the Chartered Institute of Fundraising (IoF) and the Charity Finance Group (CFG) has found that charities are likely to face a sector-wide income loss of £12.4bn because of the Covid-19 crisis. A survey by IoF, CFG, NCVO, and supported by PwC, found that during lockdown charities were expecting a 24% reduction in the total income for 2020.

The survey, conducted between 23 March and 12 May 2020, found that charities received 29% less income than budgeted for, while 84% reported a decrease in their total income. In addition, 92% of charities reported a fall in trading income during lockdown. Only 5% reported an increase in trading income.

When asked to predict rates of income for the remainder of 2020, respondents said they are planning for a fall of 57% on trading income. Charities have also revised their voluntary income for the year down by an average of 42%.

The chief executive of IoF, Peter Lewis, said the research showed the ‘hugely significant’ impact of Covid-19 on the charity sector. ‘The government urgently needs to review and enhance its emergency support for charities, with a further bespoke package of support, an extension to the Job Retention Scheme that specifically supporting those charitable activities which are still unable to take place, or both,’ he said.

Caron Bradshaw, chief executive at the CFG said that action is required to support the work that charities undertake in society and to prevent the ‘devastating impact’ the income fall will have on those who rely on the services charities provide. ‘If charities are not there to meet the need, someone will have to pick up that work or that need will go unmet… Failing to invest in us now will be false economy and will let those most marginalised and disadvantaged shoulder the greatest fall out from this crisis,’ she added.

Read the report in full here.

The #NeverMoreNeeded campaign has been launched to try and get more support in place for those charities that are facing huge drops in income and increases in demand. Find more about the campaign here.