Almost two thirds of charities axe jobs and services over financial strain
Almost two thirds of charities have axed workers and vital services as they come under pressure from falling income, staff burnout and declining public donations, according to new research.
The vast majority have warned they are considering leaving their roles amid intense conditions in the sector, experts at Rathbones have warned.
Research by the investment specialists found that 95 per cent of executives in the sector are thinking about leaving.
The survey of 100 charity bosses also found that 64 per cent have already had to make redundancies and cut vital services because of the financial strain.
Andy Pitt, head of charities at Rathbones, said: “Our research shows that charities are being forced into taking drastic measures such as halting stock market investments, selling assets and making redundancies in order to keep afloat amid plummeting income.
“These are impossibly difficult decisions to make and many think it will be a year or two until they can expect their income to increase again.”
The research found that charities have been hit by a “perfect storm” of weaker income caused by falling donations alongside intensifying pressure on charity staff.
Almost half of charities said their income has fallen between 10 per cent and 15 per cent over the past two years.
Most surveyed charities warned that they expect the autumn budget to negatively hit their organisation, while 87 per cent already fear they cannot absorb higher wage and National Insurance costs which came into force earlier this year.
Mr Pitt added: “UK charities are entering the Autumn Budget with genuine concern.
“Many are already navigating the pressures of reduced donations and rising operational costs, including higher minimum wages and employers’ National Insurance contributions.
“With 70 per cent of charities expecting financial impacts from the upcoming Budget, there is real anxiety about how potential tax rises and benefit cuts could affect their ability to deliver vital services.”
By Henry Saker-Clark, PA Deputy Business Editor