Donations Fall as Demand for Services Grows

Taken from the ACEVO site and reported this morning on Sky News (with the appropriate Sky panic!)

In late August 2008 acevo and CAF sought your views on the state of the economy, and how this has impacted on your organisation over the last 12 months. The results suggest that the effects of the slowing economy are having a huge impact on charities.

The findings show that 72 % of you have seen demand for your services increase. Almost a third of you surveyed have seen individual donations fall and a further 30 % have seen no significant change over the same period.

Inflation is also impacting on charities with 71 % of you seeing your costs increase. A clear majority (88 %) of CEOs expect income to drop over the next 12 months and three quarters (75 %) believe the country will enter an economic recession.

Charities are reacting in a number of ways. Nearly a third of you (29 %) have made staff redundancies. Over half (56 %) have limited staff pay increases. Fundraising activity has been ramped up in 77 % of charities. Meanwhile, 63 % have increased grant applications.

This differs to what was seen in the previous two recessions, when CAF research at the time found that individual donations remained relatively stable in the 1980s and 1990s.

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