Half of aid charities will not survive Covid-19 income losses, research suggests

The Covid-19 crisis, Brexit and funding cuts are cited as the biggest threats to the sector, a survey by aid sector network Bond has revealed.

Bond surveyed just under 100 of its members about their financial future.

This found that just 52% of organisatons can see themselves operating in two years time.

Around a quarter (24%) say they expect to close their doors within a year “unless the funding picture drastically changes” says Bond. Of most at risk organisations, four out of ten are small NGOs.

Among small to medium sized organisations surveyed by Bond just 29 per cent expect to continue operating in two years time. This could see 185 small aid charities closing by 2023.

Bond director of membership and communications Mike Wright is calling on the government to set up a £10m relief fund to help small NGOs in particular.

“We're engaging with UK government to help them understand the impact that Covid-19 has had on NGOs’ finances and their ability to serve the communities they support,” said Wright.

“As small NGOs are particularly vulnerable to closure, the government should set up a £10m relief fund to help small NGOs continue to support their local partners and the communities that they work in. Otherwise we risk losing specialist organisations and charities at the heart of local communities in the UK.”

Redundancies

Of those surveyed by Bond almost half had already made or are about to make staff redundant as a result of the health crisis. Around a fifth (21%) have had to make more than one in ten staff redundant.

The majority of large aid charities (79%) have made staff redundant. Jobs most at risk are roles in programme delivery, administration, finance and fundraising.

Among charities already set to close is African Initatives, which supports marginalised women in Tanzania. It is due to close in 2021.

In June Oxfam GB announced plans to cut 200 jobs ass part of an organisational structure amid a fall funding caused by the pandemic.

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