A useful article from Charity Excellence on the impact of the Cost of Living crisis on UK charities. You can find more on their website https://www.charityexcellence.co.uk/
There are no major changes to our previous forecast, as the crisis appears to be following our modelling predictions.
Good News.
- There has been some hopeful economic news, such as falling gas prices giving the Chancellor some head room
- Inflation expected to fall soon.
- Plus, the deterioration in fundraising that began in late 2021, has been slowing in recent months.
- We think we may see some signs of recovery earlier than our predicted mid-year 2023.
Not So Good News.
- The Bank of England forecast suggests that economic recovery will take longer and.
- We are seeing signs of deep financial distress amongst charities.
- If there are significant closures as we fear, those charities won’t be coming back, and.
- For others that are liquidating large amounts of reserves, restoring those will take years, with a commensurate impact on service delivery.
- Our forecast for full sector recovery has moved from 2024 to 2025.
