Three in five charities experience increase in demand despite "deteriorating" finances

Three in five charities experience increase in demand despite "deteriorating" finances

Released On 22nd Dec 2021

Almost three in five charities experienced an increase in demand ahead of the festive period, a major study has revealed. 

The research - published by the National Council for Voluntary Organisations (NCVO) in collaboration with Nottingham Trent University and Sheffield Hallam University - shows that the third sector may struggle to meet demand in the wake of the coronavirus pandemic. 

According to the Covid-19 Voluntary Sector Impact Barometer for December 2021, over half (57 per cent) of charities experienced an increase in demand for their services in the last month. 

In addition, one in two (50 per cent) frontline charities and over four in five (85 per cent) infrastructure organisations thought that the level of demand for support has increased since the start of the pandemic in March 2020. 

However, just half (51 per cent) of charities reported being in a "stable financial position" in November, with 64 per cent of those expecting their position to persist in December. 

Worryingly, just 17 per cent of charities expect their financial position to improve over the coming month, while 23 per cent expect their financial position to "deteriorate".

Commenting on the figures, Daniel King, professor of organisational behaviour at Nottingham Trent University and project lead, said: "The capacity of infrastructure organisations to respond to covid-19 has been at the heart of much of the charity sector's response to the pandemic. 

"However the future is uncertain and, with core funding often difficult to get or maintain, many infrastructure organisations are concerned about their future direction and capacity to deliver their central mission."

For help and advice with related matters, please get in touch with our charity finance team today.

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