As the impact of the coronavirus continues to be felt across the country and we see how some organisations are beginning to adjust to the new norm, the charity and not for profit sector, so accustomed to helping others, continues to be under unprecedented pressure.
Various sector bodies suggest the crisis is a perfect storm that will lead to a total loss in charity income of £4.3 billion over a 12-week period. There are real fears that many vital organisations could go under if assistance is not provided to them.
As a firm, we have a dedicated not for profit team and a real commitment to the not for profit sector and to supporting our clients at this massively difficult and challenging time. Many of our partners, directors and staff are active trustees of charities, schools and other not for profit organisations, so have a direct insight into the issues many organisations are facing and an empathy with the difficulties they are experiencing.
We have a dedicated section on our website which has daily updates on the latest information and developments on support for organisations and individuals, but we also wanted to provide some additional information and guidance for the not for profit sector.
The Governments £750m charity support package
In the biggest announcement for the sector since the coronavirus pandemic started, the Chancellor has announced that charities across the UK will receive a £750 million package of support to ensure they can continue their vital work during the crisis.
£360m of this will be provided directly to charities providing essential services and supporting vulnerable people, which will include
- Hospices to help increase capacity and give stability to the sector, who will receive up to £200m of this funding.
- St John Ambulance to support the NHS.
- Victims charities, including domestic abuse, to help with a potential increase in demand for charities providing these services.
- Vulnerable children charities, so they can continue delivering services on behalf of local authorities.
- Citizens Advice to increase the number of staff providing advice during the crisis.
£370m will be provided to support smaller charities who are at the heart of local communities which are making a big difference during the outbreak, including those delivering food, essential medicines and providing financial advice. In England, this support will be provided through organisations like the National Lottery Communities Fund.
The BBC also announced their ‘Big Night In’ charity appeal on 23 April, and the Government announced it will match pound for pound whatever the public decides to donate, starting with at least £20m to the National Emergencies Trust appeal.
The Government announced that “Departments will now work at pace to identify priority recipients, with the aim for charities to receive money in the coming weeks. The application system for the National Lottery Community Fund grant pot is expected to be operational within a similar period of time”.
While this is a great first step in supporting the sector, the real concern for many is that this falls short of the £4.3b loss of income forecast for the sector and the impact the crisis will have on those organisations that are not able to access this funding.
For further information please speak to Andy Jones.