Two-fifths of charities and community groups report worsening financial situation, reveals survey

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18th November 2020 17:48 - Voluntary

Two-fifths of charities and community groups report worsening financial situation: A survey of charities and voluntary sector organisations has revealed insight into how Covid-19 has impacted the sector, with 39% reporting a deteriorating financial situation. 

The research, a collaboration between Nottingham Trent University, the National Council for Voluntary Organizations (NCVO) and Sheffield Hallam University is just one part of a major new research project—Respond, Recover, Reset: The Voluntary Sector and COVID-19.

The Barometer survey is the largest survey of its kind and reveals the devastating impact of the coronavirus pandemic. Since the crisis began, nine out of 10 charities (92%) said they have seen an increase in delivering their services online.

It revealed that while 39% of voluntary organisations said their financial position had deteriorated over the last month, the same percentage (39%) said it had 'stayed the same', while 20% reported an improvement. 

Looking towards next month, 34% of the 700 organisations polled in September expect their financial position to deteriorate, while more than half (53%) predict it will stay the same. Just 13% are expecting their financial position to improve. 

The research also found that more than half the organisations surveyed (56%) are expecting to see a surge in demand for their services over the next month in response to Covid-19 lockdowns and unemployment figures continuing to climb.

Looking to next year, many organisations fear that the disruption caused by the pandemic will continue, with 80% forecasting that the situation will have a negative impact on their ability to deliver their objectives. Almost one in 10 (9%) said they expect 'no impact' from Covid-19, while 11% believe it will have a positive impact for them.

For 10%, the situation is so dire that they predict they'll have no option but to close their doors permanently. 

Daniel King, a professor at Nottingham Trent University and project lead said:

“The voluntary sector includes thousands of passionate volunteers, staff and organizations, and we hope our research will continue to provide examples of best practice for others to follow."

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