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Charities optimistic despite pandemic pressures

More than one third of charities feel more positive about the future, but increasing demand for services and staff shortages pile on the pressure. Read the results from the summer 2021 Covid Charity Tracker Survey.

 

More than a third of charities have reported feeling positive about their prospects as the country recovers from the pandemic.

The results from our latest joint Covid Charity Tracker Survey with Pro Bono Economics and CIoF found that 37% of charities felt more positive about their situation between April and June this year when compared to the previous three months.

This optimism comes despite two-thirds of charities facing a hike in demand for their services over the same period, as well as staff shortages due to the ‘pingdemic’.

The latest edition of the COVID Charity Tracker by PBE, in partnership with Charity Finance Group and the Chartered Institute of Fundraising, found that:

  • In total, 37% of charities felt more positive about their operating environment between April and June compared with the previous three months, while 25% felt less positive and 38% felt no change.
  • Two-thirds of charities (66%) experienced an increase in demand for their services between April and June this year.
  • Six in 10 charities (60%) reported members of their workforce self-isolating or affected by a member of their household self-isolating due to the 'pingdemic' in July and August.

In the week prior to the Charity Tracker survey going live in July, there were an estimated 850,000 Covid infections and almost 700,000 had been ‘pinged’ by the NHS Covid-19 app in England alone.

With rising demand on services and staff forced to isolate, over half of charities (52%) said the 'pingdemic' impacted service delivery.

In a positive sign for the post-pandemic future, the survey found charities were slightly more likely to have increased spending in the period from April to June this year, when compared with January to March.

These rises have mostly been driven by expenditure on the workforce, with almost three in ten (28%) reporting growth in payroll costs and a quarter (25%) saying they had spent more on staff training and development.

Charities also look to be continuing to capitalise on the shift to digital during the pandemic - almost half of respondents (44%) reported increased spending on digital technology and IT equipment in the previous quarter.

According to the survey, almost a quarter of charities (23%) still have staff furloughed, slightly below the national rate of 28%, while half of these charities reported that less than 5% of their workforce is affected.

Encouragingly, most of the charities surveyed do not expect to see job losses because of furlough ending. Only 7% of charities expect the end of furlough to have a negative impact on the size of their workforce, with just 1% classifying this expected impact as “significant”.

Roberta Fusco, Director of Policy and Communications at the Charity Finance Group, said:

“The pressures of increased demand and restricted budgets brought about by the pandemic are continuing to be felt by many charities, but thanks to their resilience and relentless focus on the people and causes they exist to support, many have taken steps to adapt and plan for the future.

“Increasing expenditure on technology and IT and in staff development is key if charities are to remain resilient and able to manage the continuing challenge.”

Anoushka Kenley, Director of Research and Policy at Pro Bono Economics, said:

“It is really encouraging to see charities starting to feel more optimistic having had to face so many challenges brought on by the pandemic. It is testament to the resilience of the sector that many organisations are looking positively to the future after such a tough period.

“But there are still a large number of charities grappling with the devastating effects of the pandemic as demand for their services continues to surge, alongside a squeeze on their resources due to 18 months of lockdowns and restrictions.”

Daniel Fluskey, Head of Policy and External Affairs at the Chartered Institute of Fundraising, said:

“Over the summer we have seen more areas of charity fundraising return which has been really welcome and positive in being able to keep up the engagement with loyal supporters. However, for many, it is a tentative return with continued uncertainty over the long-term, meaning that it is harder for charities to be able to plan with full confidence.

“We hope that the more optimistic feeling reported in this research means that organisations are able to look ahead to a successful period of fundraising where we are able to reach out to people in ways that have been restricted over the last 18 months.”


ENDS


Notes to editors:

The COVID Charity Tracker survey ran from July 26 to August 15, 2021. 140 charities responded, of which 66 were categorised as ‘smaller’ (annual income below £500,000) and 74 were categorised as ‘larger’ (annual income over £500,000).

Some figures may not sum to 100% due to rounding.

Key findings:

Table 1. Are you more, or less, optimistic than you were three months ago about the general operating environment for your organisation?

 

All Charities

Smaller Charities (<£500k)

Larger Charities (£500k+)

More

37%

32%

42%

Less

25%

30%

20%

Same

38%

38%

38%

           

Source: PBE Charity Tracker, July 26-Aug 15, 2021

Notes: All charities n=140, Smaller charities n=66, Larger charities n=74.

 

Table 2. How did your expenditure change over the first quarter of this financial year (April 2021-June 2021) compared to the previous quarter (Jan 2021-March 2021)?

 

All Charities

Smaller Charities

Larger Charities

Overall expenditure

Fallen by more than 25%

5%

3%

7%

Fallen by up to 25%

20%

23%

18%

No change

45%

48%

41%

Increased by up to 25%

27%

23%

31%

Increased by over 25%

3%

3%

3%

Don’t know

1%

0%

1%

N/A

0%

0%

0%

Payroll

Fallen by more than 25%

3%

5%

1%

Fallen by up to 25%

16%

15%

18%

No change

46%

45%

46%

Increased by up to 25%

26%

23%

30%

Increased by over 25%

2%

3%

1%

Don’t know

2%

0%

4%

N/A

4%

9%

0%

Rent/mortgage (office)

Fallen by more than 25%

4%

3%

5%

Fallen by up to 25%

6%

2%

9%

No change

59%

52%

65%

Increased by up to 25%

8%

8%

8%

Increased by over 25%

2%

3%

1%

Don’t know

1%

0%

1%

N/A

21%

33%

9%

Rent/mortgage (other)

Fallen by more than 25%

1%

2%

1%

Fallen by up to 25%

2%

2%

3%

No change

45%

33%

54%

Increased by up to 25%

1%

3%

0%

Increased by over 25%

1%

0%

1%

Don’t know

1%

0%

1%

N/A

49%

61%

39%

Delivering fundraising events (non-staff costs)

Fallen by more than 25%

11%

12%

9%

Fallen by up to 25%

12%

6%

18%

No change

40%

41%

39%

Increased by up to 25%

4%

5%

3%

Increased by over 25%

0%

0%

0%

Don’t know

1%

0%

1%

N/A

33%

36%

30%

Utilities

Fallen by more than 25%

2%

3%

1%

Fallen by up to 25%

11%

12%

9%

No change

56%

48%

62%

Increased by up to 25%

14%

12%

16%

Increased by over 25%

1%

0%

1%

Don’t know

2%

0%

4%

N/A

14%

24%

5%

Fuel/Milage

Fallen by more than 25%

11%

8%

15%

Fallen by up to 25%

16%

18%

15%

No change

40%

30%

49%

Increased by up to 25%

8%

11%

5%

Increased by over 25%

1%

2%

0%

Don’t know

1%

2%

1%

N/A

22%

30%

15%

Digital technology and IT equipment

Fallen by more than 25%

1%

2%

0%

Fallen by up to 25%

6%

6%

5%

No change

43%

48%

38%

Increased by up to 25%

38%

29%

46%

Increased by over 25%

6%

5%

8%

Don’t know

1%

2%

1%

N/A

5%

9%

1%

Other equipment and furniture

Fallen by more than 25%

1%

2%

1%

Fallen by up to 25%

8%

6%

9%

No change

60%

55%

64%

Increased by up to 25%

13%

14%

12%

Increased by over 25%

3%

3%

3%

Don’t know

1%

0%

3%

N/A

14%

21%

8%

Staff training and development

Fallen by more than 25%

2%

3%

1%

Fallen by up to 25%

9%

6%

12%

No change

55%

58%

53%

Increased by up to 25%

22%

17%

27%

Increased by over 25%

3%

3%

3%

Don’t know

1%

0%

3%

N/A

7%

14%

1%

Other

Fallen by more than 25%

1%

2%

0%

Fallen by up to 25%

4%

3%

4%

No change

52%

52%

53%

Increased by up to 25%

7%

8%

7%

Increased by over 25%

1%

2%

1%

Don’t know

2%

0%

4%

N/A

33%

35%

31%

       

Source: PBE Charity Tracker, July 26-Aug 15, 2021

Notes: All charities n=140, Smaller charities n=66, Larger charities n=74.

 

Table 3. How has demand for your services changed since April 2021?

 

All Charities

Smaller Charities (<£500k)

Larger Charities (£500k+)

Increased by 25% or more

25%

29%

22%

Increased by up to 25%

41%

38%

45%

No change

19%

18%

20%

Decreased by up to 25%

10%

12%

8%

Decreased by 25% or more

1%

3%

0%

N/A – we don’t work directly with beneficiaries

3%

0%

5%

N/A – we’ve been closed due to social distancing requirements

1%

0%

0%

Don’t know

0%

0%

0%

       

Source: PBE Charity Tracker, July 26-Aug 15, 2021

Notes: All charities n=140, Smaller charities n=66, Larger charities n=74.

 

Table 4. What proportion of your workforce (employed and volunteers) are currently self-isolating or are affected by a member of their household self-isolating?

 

 

All Charities

Smaller Charities (<£500k)

Larger Charities (£500k+)

None

40%

52%

28%

Less than 5%

38%

29%

47%

Between 5% and 10%

13%

6%

20%

More than 10% but less than 15%

4%

6%

1%

Between 15% and 20%

1%

2%

1%

More than 20%

4%

6%

1%


Source: PBE Charity Tracker, July 26-Aug 15, 2021

Notes: All charities n=140, Smaller charities n=66, Larger charities n=74.

 

Table 5. What is the impact of self-isolation within your workforce on your delivery of services?

 

All Charities

Smaller Charities (<£500k)

Larger Charities (£500k+)

It is having a significant impact

11%

14%

9%

It is having a slight impact

41%

36%

46%

There is no impact

35%

35%

35%

N/A

13%

15%

9%

Source: PBE Charity Tracker, July 26-Aug 15, 2021

Notes: All charities n=140, Smaller charities n=66, Larger charities n=74.

 

Table 6. What percentage of your workforce are currently furloughed through the Coronavirus Job Retention Scheme (CJRS)?

 

 

All Charities

Smaller Charities (<£500k)

Larger Charities (£500k+)

No staff furloughed

77%

80%

73%

<5%

11%

6%

16%

Between 5% and 10%

2%

2%

3%

>10% but <15%

2%

2%

3%

Between 15% and 20%

1%

0%

3%

>20%

6%

11%

3%

Source: PBE Charity Tracker, July 26-Aug 15, 2021

Notes: All charities n=140, Smaller charities n=66, Larger charities n=74.

 

Table 7. The Coronavirus Job Retention Scheme is due to end on 30 September 2021. What impact do you expect this to have on the size of your workforce?

 

 

All Charities

Smaller Charities (<£500k)

Larger Charities (£500k+)

We do not expect the ending of the CJRS to affect the size of our workforce

50%

45%

55%

We expect to slightly reduce the size of our workforce due to the ending of the CJRS

6%

3%

9%

We expect to significantly reduce the size of our workforce due to the ending of the CJRS

1%

3%

0%

N/A – we have not used the CJRS

42%

48%

35%

Source: PBE Charity Tracker, July 26-Aug 15, 2021

Notes: All charities n=140, Smaller charities n=66, Larger charities n=74.

 

About Pro Bono Economics:

PBE uses economics to support the social sector and to increase wellbeing across the UK. It combines project work for individual not-for-profits and social enterprises with policy research that can drive systemic change.

 

About Charity Finance Group:

Charity Finance Group (CFG) is the charity that inspires a financially confident, dynamic and trustworthy charity sector. We do this by championing best practice, nurturing leadership and influencing policy makers.

 

About the Chartered Institute of Fundraising:

The Chartered Institute of Fundraising is the professional membership body for UK fundraising. We support fundraisers through leadership and representation; best practice and compliance; education and networking; and we champion and promote fundraising as a career choice. We have over 6,000 individual members and over 600 organisational members who raise more than £10 billion in income for good causes every year.

For further information, please contact:

PBE Press Office at or 07715 073433. Follow Pro Bono Economics at (@ProBonoEcon) and Matt Whittaker (@MattWhittakerPB) on Twitter.

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