Charity leaders are being urged by the public to be cautious with their spending amid the cost-of-living crisis, even if it means beneficiaries miss out on vital help and support.

A survey published by the Charity Commission found greater support for a cautious approach to spending despite the impact it has on the communities that charities are supporting.

More than half (55%) of the public agreed with the statement that “trustees should be cautious with charity funds even if that may limit the help they can give to those in need”.

This statement is also backed by around four in five (79%) of trustees.

“I think charities do need to be cautious because the longer they survive, the more good they can do,” said one member of the public who took part in the survey.

“If they have a clear amount or percentage that they can donate safely, they should, so I would say my answer to that would be they should be safer than sorry.”

Another said: “It’s probably a better idea just to try and do what they can with the resource that they have, as opposed to be going a bit wild.”

Meanwhile just under a fifth (18%) believe that “trustees should take risks to increase the help available to those in need even if that puts some charitable funds at risk as a result. Less than one in ten (9%) of trustees back this approach.

A quarter (26%) of the public are on the fence around trustee’s balance between caution and risk when supporting communities.

Elsewhere three in five (62%) of the public believe trustees should ensure they are spending charity funds only on its core purpose, while a fifth believe trustees “need to be allowed to use their judgement as to how best to spend charity funds”.

“There is a clear preference for trustees to be cautious when spending charity funds,” said the Charity Commission.

“This is the case in both England and Wales, and is particularly true in the current context, with interviewees noting the impact of the cost-of-living crisis and need for prudence to ensure financial stability.

“Though help to those in need may be limited as a result, safeguarding the future of the charity to ensure long-term support is deemed most important.”

But it adds that “in line with the desire for money to reach the end cause, excessive caution is equally frowned upon – the public want donations to be put to good effect and not sitting in a bank account.

“Charities therefore have public permission to use a sensible balance of the two approaches, where funds are used to maximise aid without taking excessive risks.”

“There is also an acceptance that risk-taking can be beneficial in some circumstances. While the public tend to prefer caution, many do not take issue with riskier spending as long as charities advertise transparently how and why the funds will be used.”

Social change campaigning

The survey was carried out for the regulator by Yonder in April this year.

It also found more support for charities to campaign for social change “though many disagree”, according to the Charity Commission.

Two in five (41%) members of the public back the statement that “charities should respond to social and cultural debates if they want to stay relevant and keep the support of people like me”.

However, three in ten (30%) believe that “charities should not get involved in social and cultural debates if they want to keep the support of people like me”.

Similarly, more than half believe that “there’s nothing wrong with charities campaigning for change in society if it helps them meet the needs of those who rely on them”.

And three in ten (31%) think that “charities should focus on meeting the needs of those who rely on them, rather than campaigning for change in society”.

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