Mon Mar 15 2021
This is the fifth such snapshot of how the sector is doing as part of the project called Respond, Recover, Reset: The Voluntary Sector and Covid-19.
A study, just released by the National Council for Voluntary Organisations, in conjunction with Nottingham Trent and Sheffield Hallam universities, based on 600 NotForProfit organisations has found that charities fundraising sources are projected to decline right across the sector during 2021, as the pandemics impact continues to be “uneven and unpredictable”.
The study is the fifth such snapshot of how the sector is doing as part of the project called Respond, Recover, Reset: The Voluntary Sector and Covid-19.
The organisations involved were asked to project any changes to their revenue streams during the 21/22 financial year to be compared with the same streams pre-pandemic.
Making the situation worse, NonProfits overall grant income is also expected to decrease slightly in 2021 by an average downturn of at least 3% according to the report… that’s despite numerous warnings of the sector being under pressure with emergency grants expiring at the end of the year.
Even larger declines are projected for service delivery contracts, public donations, investments and other income sources.
Whilst none of this may sound unexpected, the report also underlines the reasons they think the pandemic has put the NonProfit sector under such pressure whilst the effects on individual charities continue to vary wildly.
While many organisations have been able to build up reserves, half of organisations are using them to cover day-to-day costs. The expected downturn in income – even for those organisations seeing only marginal declines – is worrying not just for the charities and groups involved, but for the lives and communities that they serve.
Mon Mar 15 2021