Charity leaders fearful for future

Cutbacks and staff losses may be on the cards for a growing number of charities in the months ahead, according to our latest survey which suggests rising pessimism about the sector's future prospects.
 
Our Charity Forecast Survey, undertaken in October and November, shows that charity leaders' confidence levels in their organisation's financial situation stand at an all-time low since the survey began three years ago.  Respondents also demonstrated low confidence in their organisation's finances, the sector's economy and the UK economy as a whole. 

Over two-thirds of respondents (69 per cent) predicted that the financial situation of their organisation would worsen over the next twelve months, compared to 63 per cent in the previous quarter's report.  And, in a trend which has worrying connotations for charities' role within the Big Society agenda, only 28 per cent plan to increase the extent of services they offer over the next three months. 
 
Over a quarter (26 per cent) of charity leaders had plans to decrease paid staff numbers over the next quarter, an increase of five percentage points from September's survey.  56 per cent expect their organisation's expenditure to reduce over the next year, a rise of four percentage points on the previous quarter.

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

"This latest survey shows loud and clear that the Spending Review and upcoming public spending cuts have made many organisations fearful for their future.  Many respondents highlighted their growing uncertainty about funding after the next financial year. 
 

"It is crucial that the Government takes heed of these concerns if it wants the sector to play a full role in delivering the Big Society agenda.  Spending cuts must be managed intelligently, otherwise they will compromise the sector's ability to deliver vital services to the individuals and communities who needs them most.

 
"NCVO will continue to build up a picture of how the sector is being affected by spending cuts, so that we can best support our members during these challenging and unpredictable times."

NCVO voluntary sector members can download the full Charity Forecast report for free - it is also available to non-members to purchase from our online publications store.