Britain’s charity sector is being buffeted by the winds of the recession

The charity sector in the UK is massive. Not just the sheer number of charities, the amount they contribute to the economy or the number of people they employ (165,000, £20bn and 950,000 respectively), but most importantly, their impact. 

Most of you reading this, whether you know it or not, will have had your lives impacted by a charity. My mother is currently benefiting from the exemplary support of Maggie’s Centre, a charity providing free cancer support and information in centres across the UK and online, after a cancer diagnosis in 2016. My grandfather attended the Forget Me Not Dementia Day Clubs which showed the value of structured and stimulating timetables, full of activities and exercise. And my son enjoys discovering nature and the great outdoors at our local Wildlife Trust and National Trust sites.

Charities have had a huge impact on my family’s life. I know I’m not alone. Some charities make a truly fundamental difference. Research we conducted at Big Give suggest that one in six people needs to use a charity foodbank to get through the Christmas period. I suspect, unfortunately, the numbers this year will be even higher.

Charities play an integral part of the social, cultural and economic fabric of life in the UK. But the impact they help create across our communities is at risk. They are facing a triple whammy this winter.

Firstly, increased demand for their services. For example, Citizens Advice has released data showing it is providing crisis support to more than twice the number of people at this point in the year than in 2020. Secondly, like all of us, they face increased costs. Thirdly, income is being hit as fundraising becomes more challenging.

I recently spoke to Kat Osborn, chief executive officer of the charity Safe Families. Through a network of volunteers, they offer support, hope and belonging to children and families who are isolated and overwhelmed, in much the same way a good neighbour or relative might step in when things are difficult. They support over 1,500 families each year across the UK, intervening early to ensure needs don’t escalate. She told me that the needs amongst the families they support are getting more significant: they are seeing mums skipping meals to feed their children, worsening mental health needs and concerns over homelessness.

As Kat put it to me, everyone across the children’s sector, from local authority services to charities, is being asked to do more with less and the need is increasing exponentially. It’s not a sustainable situation.

Despite the extremely challenging economic circumstances we all face, the good news is that history suggests the British public will continue to support our charity sector. In the last recession, in 2009, Comic Relief had their biggest ever Red Nose Day fundraising campaign, raising £82m compared to £67.7m before the recession took hold in 2007. Throughout the pandemic, the amount given to charities actually increased and we saw amazing fundraising feats like Captain Tom Moore’s extraordinary efforts in support of NHS Charities Together.

Whether it’s donating goods and food, volunteering time, offering skills or giving money, it is critical we double down on supporting charities and communities in the weeks and months ahead. A little can go a long way.

This is particularly true for those with the means to give. Data suggests that giving levels amongst wealthy individuals as a percentage of their income are much lower than low-income donors. Now, with charities under growing pressure, is the time for that to change.

Businesses too, can play a part. Despite the tough circumstances, it is not the time to withdraw from their environmental, social and governance commitments or support they give to their local community. There are businesses showing leadership in this area, such as Experian, which is scaling up its United For Financial Health programme that helps people manage their money more effectively.

This does right by our communities, but also makes commercial sense as well. Increasingly, investors are choosing companies that offer not just a financial but a social return. Consumers also, increasingly, want to buy products and services from companies that are committed to making tomorrow’s society better than today’s.

Big Give has launched a campaign that will double the impact of giving this Christmas for over 1,000 charities. We have pioneered the concept of match funding – asking funders to match donations to charities made by members of the public. It means £50 from an individual becomes £100 for a good cause after being doubled by a Big Give match funding “champion” – typically philanthropists, foundations or companies.

Thanks to the generosity of philanthropists and funders such as The Reed Foundation, The Childhood Trust and Julia & Hans Rausing, amongst many others, any donation made before noon tomorrow via our platform will be doubled. It’s one donation, twice the impact. And it’s impact that has never been more needed. Please give, if you can. 

Support Big Give’s Christmas Challenge.