Coronavirus impact on charity sector - Rachael Maskell

“The economic challenges of Covid-19 have had a devastating impact on charities. Charites have lost much of their income and half of charity staff have been furloughed. Without further support measures, there may be many more significant redundancies across the sector.

“Many people across the country rely on the variety of services and support the charity sector provides. However, while fundraising is limited and without Government intervention, many of these charities will be unable to cope with the increased demand of their services.

“This is deeply concerning and Labour is calling on Government to provide the recovery support needed. Not to do so will place enormous pressure on public services and will result in many people in our communities struggling without the vital support and care they need.”

Ends

Notes to Editors
· The report ‘Impact on the charity sector during coronavirus’ was conducted by the Institute of Fundraising, NCVO, and Charity Finance Group, with support from PwC and released today (Friday)
· Charites have lost a third more (29%) of the income they had already predicted for the lockdown period, with 84% seeing a significant decrease in income.
· Half of charity staff have been furloughed under the Coronavirus Job Retention Scheme with 63% of charities accessing this.
· As reserves run out, the sustainability of charities is proving very challenging with many predicting cuts to services and 5% predicting closure.
· Demand on charities has increased over the past few months (by 47%).