Charities face ‘lackluster’ celebratory donations as rising living costs hit the finances of organizations and their sponsors.
Fewer people are donating to charity compared to before the pandemic, according to a survey by the Charities Aid Foundation (CAF).
Rising prices and bills mean the money donated doesn’t go as far, while demand for services increases.
A charity boss says it leads to decisions that “make me cry”.
Lara Bundock, founder and executive director of the Snowdrop Project, which supports human trafficking survivors, said it was no longer able to fund the travel expenses of everyone who needed her charity as a safe haven.
That left some in need asking if they could afford the fare to visit Snowdrop, she said.
“The economic climate and cost of living crisis have hit us harder than we could have ever imagined,” she wrote in a message to supporters. “For the first time in 10 years, I’ve had to make some tough decisions to keep the charity going.”
She said the charity’s spending had risen by £10,000 a year, with a sharp increase in the cost of heating and lighting its Sheffield premises.
The charity has cut some of her English classes and Ms Bundock, who climbed Kilimanjaro to raise funds for the charity, said finances are tight but she is determined to retain experienced key workers.
“Of course I know that everyone has problems. I hope if you can’t donate you can share information with others or companies that may be able to,” she told the BBC.
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The CAF, an advisory group for the charity sector, said this time of year – November in particular – is usually a key month for giving, due in part to national events such as Remembrance Day.
However, the survey found that people had fewer opportunities to donate during the pandemic and that the number of donors had not increased this year. This is likely the result of pressure from the rising cost of living, the CAF said.
About 36% of respondents had donated in the previous four weeks, according to the November CAF survey. This was slightly higher than the same month in the previous two years, but lower than an average of 43% in November in the pre-pandemic years.
Those who have donated donated more than four or six years ago, but this comes at a time when high inflation is eating away at the purchasing power of those donations.
“It’s understandable for people to limit their giving during the holiday season, but it’s a concern for the many charities that rely on festive fundraising, especially after two years of canceled charities and roll calls,” said Neil Heslop, executive director of the charity foundation.
“Charities know more than most people the pressure people feel as they try to provide for their families during this incredibly challenging time.”
The CAF said demand for its services had increased significantly for a third of charities compared to last year and people were becoming more aware of those in need in their local communities.
It said people could boost charities’ coffers by declaring their donation to have Gift Aid added. There were also tax-efficient ways to donate directly from pre-tax salary or pension.
It also encourages people to offer their time as an equally valuable way of helping.
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