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Half of charities failing to beat the downturn
Rashid Razaq17 Mar 2009
CHARITIES today warned they will have to cut back services with more than half already struggling because of the recession.
About 52 per cent of charities in England and Wales say they have been affected by the credit crunch, up from 38 per cent when similar research was carried out in September last year, according to the Charity Commission.
Nearly two thirds of charities with an annual income of more than £1million said they were concerned the economic problems would impact on their work.
The survey of more than 1,000 charities found one in three has taken steps to try to combat the impact, with 14 per reducing costs, 11 per cent increasing fundraising and six per cent drawing on reserves. About five per cent said they were holding off from offering new services, while two per cent had cut staff numbers.
But only three per cent said they had considered collaborating with another charity, and the same proportion had thought about merging.
Dame Suzi Leather, chairwoman of the Charity Commission, said: "Clearly the impact of the financial downturn on charities is widening and deepening.
"Some still face that double whammy of a drop in income as well as an increased demand for services. It is very surprising that more charities are not considering collaboration."
Reader views (4)
The whole third sector is in crisis. I believe that many organisations provide services that should be provided by a statutory body. If charities go bust then some one will need to step in and provde those services.
As someone who has been involved in the voluntary sector for nearly 10 years, I despair at the way some charities are treat by local authorities and the Government. Talk about squandering the goodwill of millions of volunteers.
- Ian Gilbertson, Newcastle, 17/03/2009 17:08
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The head offices should cut their staff, from experience there are too many overpaid staff in plush offices equipped with the latest technology. The marketing departemnt should be the first to look at itself and ask if it is providing value for money, instead of imposing gimmicks on a weary donating public
- Liza, London, 17/03/2009 16:10
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I stopped giving to most major charities when I became a trustee of a local charity and saw how difficult it is for us to raise funds, particularly as the big charities employ those annoying chuggers and put them right on your doorstep!
Oh by the way, due to imposition of the LEZ we need a new mini-bus. £ 20K anyone?
- Mark, South-East London, 17/03/2009 14:25
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One of the worst affected will be hospices, who rely on public funding to give the terminally ill support and dignity in death. Support your local hospice or it may not be there when you need it.
- Bob, Cheam, 17/03/2009 11:29
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