Don’t give to charity!
Posted on Monday, August 14, 2017 by Venn Group — No comments
Why should I give them any of my money?
Charities in the UK are walking a fine line when it comes to their finances. There is increasing pressure on them to ensure top level executives aren’t paid too highly, this is coupled with the competition for funding becoming more frantic, potentially leading to a difficult future for the sector.
A report released by the National Council for Voluntary Organisations suggested that if funding completely stopped across the sector based on the net worth of all assets and reserves it would only be self-sufficient for 15 months.
If you break these figures down even the charities who hold the highest level of reserves generally only hold about 3 months’ worth of funds which would be just enough time to wind an organisation down and liquidate all of the assets. The worrying figures come from the smaller charities that hold minimal, to no reserves, and are dependant almost entirely on annual grants and consistent donations and could collapse leaving valuable service users exposed should the funding stop suddenly.
Donors are becoming increasingly frustrated with the lack of money that end service user receives from the donations they give. Most donors are reluctant to give money towards overheads and upkeep costs and with the rising inflation costs in the UK it is difficult to see these figures reducing.
With pressures put on the government to also reduce spending, the lack of services provided by the authorities is then picked up by charities. It is widely known that across the sector that charities have the attitude that they don’t turn people away despite not always having the funding to provide the service the user requires. This means the sector is vulnerable as funding is reducing and the increased demand on it services is on the up which means the collapse of some our most dependable charities is always a distinct possibility.
There is no easy solution to fixing the issues that UK charities face over the next 10 years and leaving the European Union is only going to complicate matters further.
The question we have to ask ourselves is can we justify handing out more of our hard earned, highly taxed, highly sort after wages and give an extra few pounds to keep the charities we support and love running for another day?
Tim Goggin. Venn Group