Charities Aid Foundation (CAF) Charity Resilience Report finds that the cost-of-living is having an adverse impact on 70% of UK charities

Most charities do not feel confident that they can meet the need for their services, which has increased over the past year for four-fifths of voluntary organisations, according to new research.

In response to Charities Aid Foundation’s (CAF) survey of 621 sector leaders, 81% of charities say that demand for their services has increased compared to a year ago.  Data collection took place in April and May 2023 as part of the Pay and Equalities survey with ACEVO. 

Fewer than two-fifths (38%) of charities have confidence that they can afford to meet the current demand for their services. A similar survey in January 2023 from CAF found the confidence level was at 54%.
However, 55% of charities are confident they can meet their current overheads, including energy, rent and supplies, up from 50% in January’s research. 

Nearly half say they have used their reserves to cover shortfalls in income, though a third of charities now say they have a plan in place to help them face the cost-of-living crisis, with two-fifths having asked funders for help.

Recruitment struggle 

CAF found that staffing is emerging as a major issue for many charities, with just 53% reporting they can afford their current staffing levels.

Three in five (66%) are struggling to recruit or retain suitably qualified candidates or volunteers, a significant increase from 43% in January’s survey.

Seven in 10 charities (70%) now say that the rising cost of living is affecting their workforce, compared to 53% at the start of the year.

‘Britain can’t afford to have charities facing such uncertainty’

Neil Heslop, chief executive of CAF, said:

Charities are still feeling stretched. They are worried about recruiting staff and struggling to meet demand for their help. Like the rest of us, they are having to adjust to inflation being higher – but they face the added challenge of people needing them more than ever, while donors’ incomes are squeezed.
Britain can’t afford to have charities facing such uncertainty. We need a resilient, vibrant charities sector supported by a renewed culture of giving. That is why the UK needs for the government to draw up a strategy for philanthropy and charitable giving to mobilise effort across society and business.”

Further information about the CAF Charity Resilience Index can be found on the CAF website.

Source: Civil Society News