Charities fear lack of service and closure due to impact of Covid-19 on finances
More than half of charities fear they may be unable to continue providing a services for more than six months because of the impact of Covid-19, and among that group almost 10% fear shutting down within a month.
The findings of a survey of more than 2,000 charities here also found that more than half said their finances were uncertain or in difficulty and more than two-thirds said services were restricted as a result of the crisis.
A total of 2,223 responses were submitted for the survey, which was conducted by the Charities Regulator.
Entitled Impact on Coronavirus (Covid-19) on Charities Survey, it found that of the more than 70% that regularly fundraise, 90% of respondents said their charities have had to cancel or postpone fundraising for 2020.
It also illustrated the severe financial impact of the pandemic on provision of services and how it has cast a future of the future of some organisations.
According to the survey, 55% of respondents said their charity’s finances were uncertain or in difficulty, while 54% of respondents were concerned that their charity may be unable to continue providing services for more than 6 months.
"Within this group, approximately 9% of respondents were concerned that they may not be able to provide services for more than 1 month, 28% for more than 3 months and 17% for more than 6 months," it said.
Another finding was that 52% of respondents had reached out to other charities to discuss plans to deal with the current situation.
Many charities have warned since the outset of the current crisis that the impact on fundraising could have severe consequences for service provision and the clients who use them. Some recent positive developments included Pieta House being told it would receive extra monthly funding from government, in addition to huge donations made by the public, led by a broadcast appeal on the Late Late Show.
However, the survey showed that more than 37% of respondents said their fundraising has been postponed until later in the year and more than a quarter had seen fundraising cancelled.
The survey also found that many charities are using technology to continue operating, with 73% of respondents stating their charity trustees continued to communicate via email or by meeting remotely. Others stressed the continued need for good governance.
"The findings of our Survey indicate that from an early stage the Covid-19 public health emergency has had and is continuing to have a serious impact on registered charities," it said.
Sample responses also highlighted the difficulties. “Children with autism missing the structures of their day with us and their families well-being impacted greatly by this pandemic," said one. "We can't work directly with young people and their families and they all don't have internet in their homes," said another.
Helen Martin, Chief Executive of the Charities Regulator, said the findings of the survey indicated that the Covid-19 public health emergency is having a very serious impact on registered charities.
“Charities on the front line and others are being called upon to provide services in response to a significant increase in demand from those in need, while at the same time trying to protect their volunteers and staff," she said. "As the Regulator, we appreciate the considerable challenges facing the sector and we are taking steps to provide guidance to charities as they try to deal with this crisis.”
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