In a recent survey conducted by the Lloyds Bank Foundation, which collected responses from 800 small and medium-sized charities, 81 per cent of respondents said their charity was facing financial difficulties.
Furthermore, over 60 per cent claimed to believe that their difficulties would worsen during the course of the next two years. 20 per cent, meanwhile, believed their chances of securing funding would remain the same, while only five per cent thought it would get easier.
Other challenging areas for participants include the increase in demand for services.
The charities that were involved in the survey had been awarded grants by Lloyds Bank Foundation, and all had an annual income ranging between £25,000 and £1 million.
Paul Streets, chief executive of the Lloyds Bank Foundation, said: “Great small and medium-sized charities reach and support some of the most vulnerable in our communities and the numbers seeking their help are rising, yet funding is being reduced.
“Commissioning is favouring larger and commercial providers, leaving smaller and local charities and their clients out in the cold – sometimes literally.
“We hope this report will be a wake-up call and that David Cameron and colleagues will hear it and put small and medium-sized charities at the heart of tackling the great social issues of our day.”
At Nicklin, our advisers have the experience to strengthen charities’ financial systems, to ensure they have the funds available to continue their valuable work. For more information, please contact us.