Fifth of charities axed staff in last six months

More than a fifth of charities have been forced to lay off staff in the last six months, it emerged today.

New figures revealed 75% of organisations suffered a drop in income, with six out of 10 made to suspend projects over lack of funding.

The survey, carried out by The Wheel which represents community and voluntary groups, revealed more than half also expect their revenues to fall further this year.

Of the 146 organisations that took part in the study, 67% reported a reduction in the amount of funding they received from Government.

Nearly half of all charities receive 80% or more of their total income from Government sources, and 45% do not fundraise directly from the public at all.

The Wheel chief executive, Deirdre Garvey, said organisations will have to diversify their funding sources if they are to weather the recession.

“Even if Government revenues stabilise, charities should not expect the same level of statutory funding in future,” she said.

“Instead, organisations should develop their entrepreneurial skills and explore new ways of collaborating to reduce their costs.”

Ms Garvey said although 30% of organisations experienced a drop in public donations since the beginning of the year, charities should intensify their fundraising efforts to minimise the effect of future cuts on their ability to deliver services.

“We are saying to charities that they have to be more proactive in asking the public for donations,” added Ms Garvey.

“People may be able to give less, but many small donations could cushion the effects of further cuts in statutory funding.”