Charities are facing an income loss of £12.4bn for the year, as a result of the coronavirus pandemic, new figures show.

New research by the Chartered Institute of Fundraising (IoF) and Charity Finance Group (CFG) has shown that charities are facing a huge loss to income as they struggle to claw back funds from cancelled fundraising events and shop closures.

The analysis is based on a survey by the sector umbrella bodies, which revealed charities expect a reduction of 24% to their total income for the year, which results in an estimated £12.4bn black hole if the average was applied to the sector as a whole.

The survey also revealed charities received 29% less income than they had budgeted for and 84% of charities reported a decrease or a significant decrease in their total income.

Meanwhile, the vast majority (92%) of charities reported a fall in trading income during the lockdown with just 5% reporting that income from trading had increased.

Looking ahead, respondents said they expect to see their total income significantly reduced, with their total income on average 24% lower than previously forecasted.

They are also planning on an average fall of 57% on trading income and have revised their voluntary income for the year down by an average 42%, the figures also found.

Commenting, the Chartered Institute of Fundraising chief executive, Peter Lewis said: “This new research shows that the impact of coronavirus is going to have a hugely significant impact on charity finances for the year ahead.

"With social distancing remaining in place for the foreseeable future, and an exceptionally difficult time ahead for the wider economy, the fact that the charities who responded to the survey are planning for a loss of almost a quarter of their total income is extremely worrying."

Lewis urged the government to 'review and enhance' its emergency support for charities, with a bespoke package of support and an extension to the Job Retention Scheme.

CFG chief executive, Caron Bradshaw added: “These survey results are strongly indicative of the scale of loss being suffered and is consistent with what our members and other data points are also telling us.

"I cannot stress enough however, that this isn’t about the survival of the institution of charity or individual charities, but the devastating impact that this will have on those who rely on the services charities provide.

"Failing to invest in us now will be false economy and will let those most marginalised and disadvantaged shoulder the greatest fall out from this crisis.”

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