Almost half of small charities ‘at risk of closure within a year’, survey finds

Nearly half of 700 small charities surveyed say their financial situation, “is so grave that they’re at risk of closure within a year”.

They ware warning that they are “being pushed to the brink” by a “triple whammy” of rising costs, increasing demand and falling income from donations and grants.

One in ten fear they have less than six months’ funding left and two thirds say dwindling grant funding has added to their financial challenges over the last years.

A dip in public donations is cited by one in three and two in three are impacted by a decrease in grant funding.

Two in three say rising costs are “a key driver of financial strain”.

Alix Lewer, chief executive of small charity The Include Project said: “It's a tough time for small charities. We risk being frozen out of funding… and yet provide highly valued, personalised support and specialist activities that truly involve communities. Right now, finding funding is mission-critical for Include and many others.”

The survey findings, among charities with an annual income under £1m, have been revealed by match funder Big Give, media firm Global’s Make Some Noise charity initiative, and sector organisation NCVO to coincide with Small Charity Week (23 – 30 June).

“Small charities bring deep local knowledge and flexible solutions, often where statutory services don’t reach,” said NCVO executive director Saskia Konynenburg.

“They’re often the glue that holds our communities together, working behind the scenes and providing vital services with finite funds.

“Through this campaign, we’re not only raising funds, we’re championing the resilience and brilliance of these organisations.”

During the week, Big Give is running a small charity match funding campaign for 189 charities taking part. For the campaign £900,000 in match funding is being provided through philanthropists and funders.

Big Give chair James Reed said: “Small charities are the beating heart of our communities.

“But they’re being hit from all sides - they are facing a triple whammy of rising costs, falling income, and increasing demand.

“This campaign aims to change that. Through Small Charity Week, we’re putting them centre stage. We know that match funding works as a powerful driver of donations and that people are more likely to give and to give more if they know their donation will be doubled.”