The Chartered Institute of Fundraising and Charity Finance Group (CFG) say today that charities are facing a huge predicted loss to their income as they continue to grapple with the impact of the coronavirus pandemic and continued social distancing measures.
The analysis comes following the publication today of the results of a recent survey of charities reporting financial loss and reforecasting of income for the year ahead. On average, respondents to that survey reported that they were expecting a reduction of 24% to their total income for the year, which would mean a £12.4bn loss of income if the average was applied to the sector as a whole.
- Charities received 29% less income than they had budgeted for
- 84% of charities reported a decrease or a significant decrease in their total income
- 92% of charities reported a fall in trading income during the lockdown with just 5% reporting that income from trading had increased
When looking at the year ahead, charities:
- Expect to see their total income significantly reduced, with their total income on average 24% lower than previously forecasted
- Are planning on an average fall of 57% on trading income
- Have revised their voluntary income for the year down by an average 42%