Over half of charities could disappear in the next six months

7 April, 2020

Over half of charities could disappear in the next six months, according to a survey conducted by the Directory of Social Change (DSC).

Thousands of charities were surveyed in order to understand the impact of COVID-19 restrictions on charities across the UK.

According to the DSC, the shocking results confirm what they and other organisations have been warning the government about:

  • Half of charities surveyed said they were already in financial difficulties due to the pandemic, with another 42% expecting to be soon;
  • Over 60% of charities who responded are furloughing staff under the Coronavirus Job Retention Scheme;
  • Just 7% of charities surveyed said they qualified for CBILS – the Business Interruption Loan Scheme, with just under half saying they did not qualify and over 40% saying they didn’t know;
  • Over half of charity respondents say they will go bust within six months without additional financial help;
  • Over 70% of charities surveyed report that they will go bust before the end of 2020 without additional financial help.
  • Respondents also provided over 200 heart-breaking stories of the immediate and long term impacts on their beneficiaries.

Commenting on the findings, DSC’s CEO Debra Allcock Tyler said: “The Prime Minister, the Chancellor, the Treasury and other decision-makers in government must understand the gravity of these results quickly and take action now to provide swift, substantial and simple emergency financial support for the charity sector.”

The findings follow a week in which national VCSE governing bodies lobbied government to announce a package of support for the sector. Many charities have mobilised around the #EveryDayCounts phrase on social media, reflecting the extreme pressure that many organisations find themselves under.

A number of MPs from all parties have also written to the Prime Minister, urging him to provide support to charities before it is too late, including former Conservative leader Iain Duncan Smith and former Minister for Civil Society Tracy Crouch, as well as Damian Green, Liam Fox, Danny Kruger, Yvette Cooper and Caroline Lucas. 

However despite this, there has still been no package announced, although a number of ministers have said that one is pending.

 

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