A Charities Aid Foundation study of almost 700 charities across the UK has revealed that more than half are worried about their ability to survive due to the rising cost of living. This has risen from April’s figure of 35%.
CAF’s research found that charities are running out of options to continue to meet the high demand for their services while experiencing falling income and rising operating costs themselves. Only half (49%) of the charities surveyed in November feel confident that they have the funds to meet current demand for their services, compared to 58% in October.
As a result, some charities are cutting back on services, with almost a quarter (24%) of those surveyed saying they have already done this and have no room to cut further.
51% of charities are also using their reserves to cover core costs. In comparison, a year ago CAF research found that two-fifths (40%) of charities were using their reserves to help them through.
Neil Heslop, chief executive of the Charities Aid Foundation, said:
“Charities are running out of options, forcing them to rely on their reserves and cut back on the services they provide. This research provides stark evidence about how the sector is responding to the triple threat of soaring demand, falling donations, and rising costs.
“Charities are at the heart of our communities and are carrying the weight of the worst effects of the cost-of-living crisis. The Government needs to recognise the critical role that charities are playing to care for those who are most vulnerable in our communities. As a start, these organisations should be placed first in the queue to receive additional support for energy bills from April.”
The research also found:
CAF has launched a cost-of-living resource hub with information for charities and funders to help them navigate the challenges.
Picture by Karolina Grabowska on Pexels
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