Charities have been hit – and some have been forced to close – by a drop in donations during the pandemic, research suggests for a City of London wealth management company.
More than two-thirds (36%) of donors and almost half (44%) of fundraisers have cut back on their donations and other promotional activities, said James Hambro & Partners.
This follows a report last month, also for James Hambro, that declining revenues for some UK charities brought them to the brink of closure (News, November 12). More than half of the 100 charities with assets to invest of at least £ 1million said their income had fallen by more than 30%. All but three said reductions in their work were being considered or had already been made, and eight were threatened with permanent closure.
The latest research from Consumer Intelligence, which surveyed 989 adults, found that the decline in regular monthly payments and the activity of donors and fundraisers was caused by the reduction in their own income. More than two-fifths (41%) had suffered wage cuts, lost their jobs or been on leave.
The study, carried out last summer, found that 36% of regular donors had reduced the amount they gave each month by an average of £ 11. About nine percent had, however, increased donations to an average of £ 15 per month.
Many did not know when they would return to normal. About a quarter (23%) had hoped to restore their payments by last September, but almost a fifth (19%) said it would take at least until this month before donations flow back to the donors. pre-Covid levels; and three percent said they never would.
Among fundraisers, a quarter had hoped to get back to normal by September, and 22% envisioned the end of the year, but 4% predicted they would never resume their efforts.
However, more people appeared ready to make bequests, often because they had benefited from charitable services during the pandemic.
James Hambro & Partners portfolio manager Patrick Trueman said: “The main concern for charities is how long it will take to resume donations and fundraising activities, and, while the support of the government during the crisis has been generous, many charities may struggle in the future.