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March 2023 - Voluntary

Utilities are most significant cost for many small charities, finds survey: A survey of charities has found that utilities costs are the most significant outgoing for half of small charities, overtaking staffing, which is traditionally an organisation's biggest single cost.

The Community Building Barometer received 121 responses, finding that around three-quarters of charities reported an increased need for their services due to the cost of living crisis. Almost half said they were currently acting as 'warm hubs' (47%), with the report also highlighting that this is funded in a very 'ad hoc' way with some charities having to fund the initiative from their own reserves.

When asked about their utilities-related costs increase, a third of charities said their costs have increased by 60% or more since September 2021. Many charities have been protected from huge rising costs by their fixed energy tariff, however almost half of these are due to expire from March 2023.

According to the survey, community spaces were found to be especially vulnerable to the hike in utility costs because of their funding model, outlined the research.

When looking at the financial position of their organisation, 50% of respondents said that their financial position had become worse in the last year, with just one in five reporting an improvement. For more than three-quarters of respondents (78%) their financial position has worsened due to rising costs, found the research.

To reduce their energy consumption, most organisations have implemented some measures, including installing insulation, room thermostats and LED light bulbs (40%). Other measures put into action included turning down thermostats (62%), installing micro-generation such as solar or wind (12%), and reducing the premises used (8%). Just over one in 10 charities said they have reduced their hours of operation in order to reduce their energy use (11%), while 6% have installed ground or air source heat pumps. Almost one in five said they had taken 'no actions' (18%), while the same proportion (18%) answered 'other'.

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