A large number of smaller charities across Gedling borough could now be facing financial ruin following a decline in donations as a result of the coronavirus pandemic.
The cancellation of all participation events since March has seen overall donations to non-NHS charities drop by 46% on a leading fundraising site.
And new research has found that smaller charities – without the reserve levels of their larger counterparts – are at far greater risk of having to cease operating entirely.
Gedling borough has around 90 small charities – with an annual income between £10k and £100k, and 72 micro charities – with an income of under £10k.
The leader of the Charities Aid Foundation (CAF) said the declining income from collection tins, charity shops and community events such as fetes and raffles had already hit the incomes of smaller operations by “hundreds of millions of pounds”.
Even though he said overall giving in 2020 was up by £800m compared to 2019 – the majority of those funds were absorbed by NHS charities.
Many of these charities have been able to access part of a £750m support package released by the government for the not-for-profit sector – or some of a further £300m released by philanthropic bodies.
But many of the grants, charity leaders say, cover just six months of operational costs.
The Small Charities Coalition says parts of the sector face a “slow death”, the true scale of which will not be realised until early next year when that grant funding runs out.
Public polling also suggests particular types of charity are at greater risk.
Results from YouGov show the nature of giving has shifted since March towards hospitals and NHS charities and away from those dealing with homelessness, disability and animal welfare.
Rita Chadha, chief executive of the Small Charities Coalition, which provides support to 14,00 small charities across the UK, said many smaller charities in Gedling borough could now be facing a ‘slow death’.
She said: “With smaller charities being the focus of the emergency funds they have got some access to that money.
“But nearly all of the funding is a six-month emergency grant.
“Most of the grants came out at the beginning of June. At the moment there is a fear about the long term because there’s just not that certainty.
“In the run up to the next financial year we anticipate people will be asking us: ‘how do we let people go?’ and ‘how do we wind down a charity?’”
“The real pinch point will be next year when these charities officially start closing .
“Many of our charities are already having to decrease their operations already. They are telling us they are having to turn people away when demand for them is increasing.
“A domestic abuse charity I spoke to was having two referrals a day. They’re now having 20.
“Their programmes and activities tend to last for two years. If they take in someone today they don’t know whether they will be able to see them through the whole programme.
“Services are changing. People are finding things they have used for years and years are disappearing overnight.
“The government feels like it has to tackle covid entirely on its own – when all the resources at a local level are locked in charities. If you are not allowing them to amplify their services it will cost more money further down the road.
“Something like increasing Gift Aid to 30%, that’s a nominal cost to the Exchequer, but would make a big difference to a small charity.”
