Charities across the country are facing imminent collapse as fundraising income dries up, charity leaders warned today.
Charities have been in conversation with the Government about a package of support for the charity sector, but warned today that without an urgent injection of money many charities of all sizes would start to close their doors as soon as next week.
With charity shops closed and fundraising events and activity cancelled, reserves depleted and demand for services increasing, charities are having to make immediate decisions about their financial viability.
Charity sector bodies have made initial estimates that charities will miss out on a minimum of £4.3bn of income over the coming 12 weeks, though the figure could be far higher. Many will also face increased costs as part of their role in tackling the outbreak.
Many charities would normally expect to make significant proportions of their income from public fundraising events in spring and summer.
Charities have asked for commitments from the government including:
emergency funding for frontline charities and volunteers supporting the response to the coronavirus crisis, especially where they are alleviating pressure on the health service or providing support to people suffering from the economic and social impact of coronavirus a ‘stabilisation fund’ for all charities to help them stay afloat, pay staff and continue operating during the course of the pandemic confirmation that charities should be eligible for similar business interruption measures announced by the chancellor for businesses.
Karl Wilding, chief executive of the National Council for Voluntary Organisations, which represents charities and volunteering, said:
Every day counts here. I’m hearing from charities whose income has disappeared overnight but who still have to run services for their communities. Many of them have very little emergency cash to tide them over, and even those that do will run out in a matter of weeks.
Many charities are helping in the current crisis to alleviate pressure on the health service or providing support to people suffering from the economic and social impact of coronavirus. Supporting the national response and helping vulnerable people to cope is our first priority at the moment but we cannot do that if we are on the brink of financial collapse.
I know the Government is working on this but for many charities around the country there is very little time to spare.
To read the full NCVO article click here.