As many as 1 in 4 charities with an annual income of £1 million or less are struggling to survive, according to the 2017 Social Landscape Survey published by the Charities Aid Foundation.
Overall, 1 in 5 charities are reporting that they are feeling the strain.
Perhaps this is not surprising in times of economic uncertainty, with inflation rising, real wages declining, and a lack of political certainty, including the Brexit situation. People are tightening their belts, which makes it more challenging for charities to stake a claim for their financial support.
In addition, there have been funding cuts in the sector, too - for example, in social housing - that are making limited resources stretch even further.
Coupled with these factors is the fact there is increasing reliance on the service and support provided to communities by charities.
In light of all this, charities have had to respond and adapt to the changing times:
- Over 60% of charities have made changes to the structure of their organisation.
- 33% of charities have either already reduced or will are planning on reducing their staff numbers, and plan to downsize the scope of their operations.
- 10% of charities are looking to merge with another organisation.
- 67% of charities have already partnered with - or will be partnering with - another charity.
- 49% of charities are considering collaboration with a private sector organisation, or have already made this choice.
The government has produced risk management advice for charities to help ensure your organisation can help to stave off financial hardship, which is available here. However, if you wish to take advantage of more bespoke risk management that relates specifically to the work that you do, please get in touch with Bollington's risk management team on 0161 929 1851, or click here to find out more about the services we offer.