Four in five charities are warning that demand for their services has increased compared to a year ago, as the cost-of-living crisis continues to impact UK society, a survey is warning.

The survey found that 81% are facing mounting demand and fewer than two in five charities (38%) are confident they can meet current demand for their services when asked in April and May this year.

This is markedly down on the 54% who felt confident they could meet demand when asked in January.

The findings have been revealed by Charities Aid Foundation (CAF), which is calling on the government to develop a strategy for charitable giving and philanthropy to better support the sector.

The cost-of-living crisis is continuing to impact charities operations. Only around half (55%) of charities are confident they can meet their overheads amid soaring cost of energy, rent and supplies. This is up on the 50% recorded from charities when asked in January.

Just under half (46%) have raised their reserves to cover shortfalls in income. Only around a third (36%) say they have a plan in place to tackle the cost-of-living crisis. Two fifths (43%) have asked funders for help.

Only around half (53%) of charities say they can afford current staffing levels, the survey also found, and three in five (60%) are struggling to recruit and retain volunteers and staff. This is a “significant increase” from the 43% who said staffing and volunteering issues were a problem in January.

Seven in 10 (70%) charities now say that the rising cost of living is affecting their workforce, compared to 53% at the start of the year.

“Charities are still feeling stretched,” said CAF chief executive Neil Heslop.

“They are worried about recruiting staff and struggling to meet demand for their help. Like the rest of us, they are having to adjust to inflation being higher – but they face the added challenge of people needing them more than ever, while donors’ incomes are squeezed.

“Britain can’t afford to have charities facing such uncertainty. We need a resilient, vibrant charities sector supported by a renewed culture of giving. That is why the UK needs for the government to draw up a strategy for philanthropy and charitable giving to mobilise effort across society and business.”

The survey was carried out with 621 charities as part of the Pay and Equalities research with ACEVO.

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