Charities facing a £10bn shortfall in six months, campaigners warn
CHARITIES IN the UK are facing a funding gap of more than £10bn over the next six months as a result of coronavirus, campaigners have warned.
A report by the charity, Pro Bono Economics (PBE), released yesterday has revealed incomes are also expected to drop by £6.7bn at the same time as demand for support rises.
The study states nine out of 10 charities expect to have a reduced income in the next six months, and 59 per cent of the organisations polled said they have had to “significantly” cut their activity.
The PBE survey shows that 72 per cent of charities expect demand to rise over the next six months in response to the crisis.
To meet this surge in demand, PBE estimates that the sector would require an additional £3.4bn in funding. Once the fall in income in added, the funding gap totals £10.1bn, according to PBE.
The charity is supported by high-profile economists, including Andy Haldane and Sir Dave Ramsden of the Bank of England and former senior civil servant Lord Gus O’Donnell, who has chaired the charity since 2016.
Researchers said many charities have sought additional funding, with half saying they have applied for emergency support from non-government sources.
More than a third have applied for a share of the £900m of support earmarked for the sector by the Government. But PBE points out that such sources are not available to all, noting that 12 per cent of charities say they “expect” to cease operating altogether before the start of December.
Matt Whittaker, the chief executive of PBE, said: “Charities and other civil society organisations play a vital role in the day-to-day lives of millions of us – and even more so at times of crisis.
“That contribution is too often taken for granted, leaving the sector subject to chronic policy neglect. If we don’t funnel more resource to charities in the coming weeks, it’s clear that many will struggle to survive.
“Once we add in the significant constraints being faced by many of those organisations that do survive, we’re looking at a huge hit to the overall capacity of the sector – with implications for all of us.”