A recent report has highlighted that a majority of local charities face a “capacity crunch” caused by the twin challenges of an increase in demand for services, compounded by their incomes either stagnating or reducing.
The Foundation for Social Improvement, in the latest edition of its Small Charity Index: Taking the Pulse of the Small Charity Sector for March – May 2017, reported that almost 70 per cent of small charities reported an increase in demand for services. Despite this, only 9% reported an increase in income.
According to the index, demand for services from small and local charities has increased by over 100% since 2013. Despite this increase in demand, statutory funding from local authorities has dropped by 11% over the same period.
Richard Davies, Capacity Building Team Leader at LCVS, said “There has never been greater need for the support of local charities but when funding opportunities continue to be under strain, the sector has to respond by thinking of ways to diversify its resources to meet those needs.
“In our work with groups, we continually support our clients to look at a diversifying their income streams and to come up with ways to accommodate increases in demand, but the pressure continues to mount. We would always encourage local charities to take the time out to think about looking into alternative income streams and to continually review the demand for their services. For example, trustees should review the demand for services at least annually, taking time to plan their next year’s services based on evidence”.
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