Half of charities to lose a quarter of their income

A survey by community organisations membership charity Locality found that 41% of charities and community groups expect to lose at least a quarter of their income between July 2020 and January 2021.

This increases among organisations where trading is more than 50% of their income. Among this group 59% expect their losses to be at least a quarter.

This comes amid increased demand during the first three months of the Covid-19 crisis, by over a third of those surveyed.

The findings are revealed in Locality’s report The Power of Our Network, which highlights the difficulties facing charities and other community organisations in generating income amid Covid-19 restrictions and social distancing.

The networking charity is calling for the government to use the Leveing up Fund, announced in Chancellor Rishi Sunak’s Spending Review, to invest in the local social infrastructure.

Locality chief executive Tony Armstrong said: “During this extraordinary year, we have experienced the power of community like never before. Community organisations have been incredible, mobilising local responses and taking the lead in keeping people connected and delivering support to those most in need.

“The social and economic impact of lockdowns is hitting our communities hard. Community organisations will be doing all they can to help their neighbourhoods weather these storms – but they themselves are straining under increased demand, decreased income and ongoing uncertainty.

“We’re calling on the government to invest in local places and the social infrastructure that sustains them.”

Locality’s report raises examples of charities and community organisations who have successfully pivoted services online and mobilised volunteers to meet demand.

This includes Grimsby community centre charity Centre 4.

“When forced to close under government guidelines, staff and volunteers sprang into action to ensure the most vulnerable people could continue to access vital support including social prescribing, advice services and social activities for the elderly,” said Locality.

“Regular services were moved online or over the phone and the team were inundated with enquiries from residents as they helped and supported through the tough national lockdown restrictions.”