The Charity Commission have published a report presenting the findings of independent research into the impact of COVID-19 on charities.
Executive summary
Nearly all charities (91%) in England and Wales have experienced some negative impact from Covid-19. The consequences have been wide-ranging and often severe, spanning service delivery, financial and staffing issues, as well as frustration and uncertainty.
- Covid-19 has predominantly impacted charities’ services and delivery (85%), alongside their financial position (72%) and staffing and governance (66%)
- work or events have been postponed and cancelled (57%) and many charities have lost income from fundraising (49%) or trading and other sources (35%)
- operationally, there is frustration caused by the uncertainty around when charities will be able to return to ‘normality’
- a majority have lost income from charitable activities (60%)
- access to volunteers has decreased for a third of charities (32%)
- few have encountered or suffered any significant impact from cyber harms
Many charities have actively tried to counter the impact of Covid-19, most commonly by adapting their services.
- the most common action taken by charities is adapting their services in light of restrictions (45%), followed by using financial reserves (40%) and even pausing operations temporarily (32%). A fifth have furloughed staff (18%)
- restrictions have resulted in less emphasis on in-person events and cash donations
- whilst the pandemic has undoubtedly presented significant challenges, there have been some benefits from positive changes made. Half of charities (49%) have made better use of digital technology
Whilst many have actioned changes in light of Covid-19, there is some concern surrounding future viability.
- a significant minority (34%) expect to generate less revenue from fundraising and donations in 2022
- over half (62%) anticipate a threat to their charity’s financial viability in the next 12 months
- however, a majority expect their charity to be in the same or better position overall
Some charities have already accessed funding support, but many would appreciate further clarity on where to find it.
- 20% have accessed Local Authority funding, and 14% have used UK Government funding
- half (50%) would find more information on financial support helpful, and often suggest the Charity Commission could do more to help charities find/access it
