Charity leaders pessimistic about financial prospects

Confidence levels regarding the financial situation of voluntary sector organisations are at their all-time lowest according to our latest Charity Forecast Survey.

The survey of charity leaders (undertaken between May 1 and May 31) also showed that more than two-fifths (42%) of respondents felt that the general situation of their organisation would worsen over the next 12 months as the recently-announced government spending cuts start to bite.

Since the survey began two years ago, confidence levels have dropped from 21% (May 2008) to -30% (May 2010), and the continuous decline since May 2009 suggests that charity leaders are struggling to remain optimistic in the current political and financial climate.

Commenting on the findings, Sir Stuart Etherington, Chief Executive of NCVO, said:

"This latest survey shows that there is widespread concern across the voluntary and community sector about future prospects.

"Of course we know that there will be budget cuts, but these cuts must be managed intelligently.  It is crucial that the Government continues to recognise and value the role that voluntary and community organisations play in supporting some of the most disadvantaged people in our society.  In the meantime, we are asking the sector to share their experiences on how the cuts are affecting them and offering our members guidance on coping during these very testing times."

Just under one-quarter (24%) of charity leaders expect their organisations financial situation to improve in the coming year, believing that there will be new opportunities and alternative sources of income available.

What next?

NCVO members can download the full survey findings now. Make sure you visit our Coping With Cuts section too – it’s packed with links to all our latest briefings and advice guides.