Most charity leaders believe income will return to pre-pandemic levels within three months

Most charity chief executives believe their organisation's income will recover to pre-pandemic levels by March 2022.

Among 100 charity CEOs surveyed, more than three quarters (77) believe that by March 2022 income will return to levels seen before the health crisis.

A quarter (24) of those surveyed are even more optimistic and have pencilled in a recovery by January, while a fifth (20) think February is a more realistic expectation.

Meanwhile an April recovery is predicted by 15 chief executives, while six have pencilled in a May recovery.

Just two charity sector leaders surveyed think a recovery will not happen until at least June 2022.

The findings of the survey, which was carried out in the summer by James Hambro & Partners, have been released this week. Those surveyed are leaders at charities with at least £1m of investible assets.

A swift increase in income in 2022 is needed for many charities to survive, the survey also suggests.

Of those surveyed 18 said the financial health of their organisation has deteriorated dramatically due to the pandemic, which has seen public fundraising and retail operations significantly curtailed.

Nicola Barber, head of charities at the wealth management firm, said: “Charites have seen a huge drop in their income, and many have had to make difficult operational changes to address this issue, which has seen some cut back on the services they provide or reduce their headcount.

“With many not expecting their income to return to pre-pandemic levels for some time, charities are potentially facing further cutbacks.”

She added that eight charity leaders surveyed believe their organisation is at risk of closure due to financial pressures.

This is the latest findings from the survey to be published this month by James Hambro & Partners.

It has previously revealed that just under two thirds of charities have had to sell or cash in some of their investments due to a fall in income.

Growing demand is a major factor in selling investments among four in ten charities.