Charities under threat with £4bn black hole
CHARITIES face a £4billion funding shortfall with some going bust because of the coronavirus crisis.
They are asking the Government for a cash injection as the estimated black hole is a third in their income.
Thousands of fundraising events have been cancelled in the coming months and only a quarter of organisations have enough reserves to see them through until mid-June.
Many charities have had to furlough staff or grant extended leave of absence. Karl Wilding, chief executive of the National Council for Voluntary Organisations, asked MPs for help during a video conference hearing of the Digital, Culture, Media and Sport Committee. He said: “Charities are facing a real crunch, with more pressure on the services they offer at the same time as losing out on fundraising income.
“This is something that is affecting all charities, large and small, and they urgently need answers.”
The Alzheimer’s Society is predicted to lose out on more than £20million while Cancer Research UK has been forced to shut 600 stores which last year raised £109million. Events such as Race For Life, which over the past 20 years has raised more than £547million, are now in doubt.
Kate Lee, chief executive of Alzheimer’s Society, has written to Chancellor Rishi Sunak and Health Secretary Matt Hancock. She said: “While we cannot accurately predict the length and scale of the crisis we suspect the financial impact will be significant – we’re talking millions.”
Last night a Government source said that the Chancellor would announce a support package for charities within days.