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November 2023 - Voluntary

1 in 5 five charities say they could be forced to close this winter: A survey of charities has revealed that without the urgent support they require, one in five are at risk of closing this winter, jeopardising the well-being of the people and communities they serve.

The survey by NCVO polled 580 of its members which revealed insight into how the pandemic has left the sector in a significantly weaker position to withstand the ongoing financial pressures.

Furthermore, 85% of charities anticipate that this winter will be just as challenging, if not more so, than last year, plus more than a quarter (27%) have expressed doubts about their ability to meet the growing demand for their services.

Consequently, the voluntary sector finds itself grappling with a 'triple threat'—decreasing income, escalating costs, and a surge in demand for their services. Despite their resilience and innovation, many charities are facing mounting pressures in what is being coined the  'Cost of Giving Crisis' as they continue to serve their communities.

Rising costs

The survey indicated that costs are consistently on the rise across the board. This includes expenses related to goods and services (73%), energy and utility bills (68%), wage bills (63%), insurance costs (51%), property maintenance (41%), and rents and mortgages (27%).

The majority of these costs are non-negotiable, leaving no room for cost-cutting measures, with just 35% of charities saying they believe they can navigate this crisis through cost reduction.

The magnitude of the Cost of Giving Crisis has prompted a quarter (24%) of charities to consider scaling back the volume or variety of services they offer this winter, which could see essential services at risk.

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