The UK’s largest charities face significant losses even with government help this financial year, research from New Philanthropy Capital (NPC) has found.

NPC had found that without help 27 of the largest service delivery charities face a £500m shortfall.

But even with help in place, through the furlough scheme, and taking measures such as redundancies, budget cuts, fundraising drives, 17 of these charities will still face a gap of between £155m and 200m.

Charities with council and central government service delivery contracts are “better insulated”, found NPC.

However, those that rely on fundraising and charity shop trading are exposed to more significant losses. This echoes the National Council for Voluntary Organisations (NCVO) warning in its 2020 almanac that charities who rely on public donation have been left vulnerable following the coronavirus lockdown.

NPC’s briefing paper on large charity finances states: “Coronavirus has put charities of all sizes under severe financial strain. For some, the threat is existential. If they fail, or if services are hollowed out to a mere shell, then the most vulnerable in our society are the ones who suffer.”

It adds: “Even with government support and cost cutting, we this sample of some of Britain’s largest charities were on average only able to close the gaping hole in their finances by just 38%.

“It is unlikely that will be enough, which means philanthropists and government need to continue working together to keep charities serving the people who need them.”

Share Story: