Cripplegate Foundation’s Post

Long-Term Decline in Government Funding Leaving Charities Vulnerable 📉 Charities across the UK are facing growing challenges as government funding continues to decline, impacting their ability to support communities in need. With reduced financial security, many are struggling to keep up with rising demand and essential services. 🔗 Read more about how this funding shortfall affects the charity sector: https://lnkd.in/evmZ9dbA #CharitySector #FundingCrisis #SupportNonprofits #CharityFunding #CommunitySupport

This is really important strategically for our sector. #Charitable #Grantmakers by themselves won't be able to shoulder the demand entirely. Rectifying the dire state of #LocalGovernment finances but also improving #Corporate giving and #Philanthropy, getting it higher up the policy agenda has to be part of the solution in my opinion. Also getting the #DormantAssets actually deployed to communities via #CommunityWealthFund(s).

It's tough out there! Charities are under incredible strain after years of cuts and austerity that have caused them to be needed more than ever by their communities. It is a perfect storm. More need. More red tape. More legislation Higher prices Less funding from All sources as funders, individuals, businesses struggle with the same issues And governments make cuts which cause more problems Charities pick up the pieces of the mess they make The announcement of the closure of Zoes Place in Liverpool is another example of the challenges the sector faces. Hundreds of charities are closing and vital services lost. Many charity staff are burning out, becoming ill or giving up in desperation and exhaustion. It is not bad management. It is unprecedented times. There has never been a greater need for people to give and support their local charities. Give without expecting lots of the charity's time. Give without tieing up the money to projects which means they can't pay staff or bills. Offering time is great but doesn't pay the bills. Regular, unrestricted giving, even in small amounts is like gold dust. Together we can make a difference.

📈Amid a serious decline in funding - from government, local authorities and individual donations - grants from charitable foundations are one of the few funding streams that has remained stable during a time of increased demand for charities. Emily Harle's analysis in Third Sector explores how this demand is shifting upstream and the impact it is having on grantmakers. https://lnkd.in/em7qTbv6 🔍𝐊𝐞𝐲 𝐢𝐧𝐬𝐢𝐠𝐡𝐭𝐬: 1. 📊 Surge in applications: Association of Charitable Foundations members report staggering increases in application volumes – ranging from 30% to an overwhelming 100%. 2. ⚖️ Capacity constraints: grantmakers face the delicate balance of managing this surge, usually with a very small staff team, while maintaining fair, effective evaluation processes. 3. 🔄 Adaptive responses from funders: - Increasing funding allocations - Restructuring grant programmes to better align with charities' needs - Streamlining decision-making processes - Reducing administrative burden on applicants 4. ⏸️ Temporary Pauses: Some grantmakers have had to temporarily suspend new applications while implementing these essential changes. At Association of Charitable Foundations we emphasise the importance of collaboration between funders. When grantmakers consider pausing their programmes, we encourage dialogue with other funders to understand the ecosystem-wide impact of such decisions. #CharitableFunding #Philanthropy #NonprofitSector #GrantMaking #SocialImpact 

📰 From our Weekly European Headlines: 𝗖𝗼𝘂𝗻𝘀𝗲𝗹𝗹𝗶𝗻𝗴 𝗰𝗵𝗮𝗿𝗶𝘁𝘆 𝗥𝗲𝗹𝗮𝘁𝗲 𝗴𝗼𝗲𝘀 𝗶𝗻𝘁𝗼 𝗮𝗱𝗺𝗶𝗻𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 The Guardian reports that 'The crisis facing the central charity comes amid growing concern about the future of many charities that are struggling to balance the books in the face of rising costs and demand, and declining donations and contract income.' Full story here: ➡️ https://loom.ly/RHmhfwo #INSOLEurope #insolvencyprofessional #insolvencynews

Insights from our Monitoring and Evaluation Process Many of our charities continue to struggle to build resilience leaving some unable to cope with shocks and key staff absence. This can slow progress and affect delivery. However, our charities also show that becoming resilient is possible. Our funding has given leaders the breathing room to implement contingency plans and strategies to diversify income. The message is clear on resilience: is it an illusion? Absolutely not. Unrestricted, multi-year core funding, as well as access to high quality skills and training, helps small charities turn resilience from myth to reality. We encourage other funders to take note. #smallcharities #socialchange #socialjustice #funding #socialenterprise #charities #inequality #grantmaking

📉 Small Charities Feeling the Squeeze Public donations now make up just 25% of income for small charities, down from 54% in 2020/21. With 73% lacking a primary income source, many are relying heavily on grants and limited funding. Read the latest UK Civil Society Almanac for more insights. #CharityChallenges #SupportSmallCharities #Fundraising

Have you read our blog? ‘Labour’s Landslide: What the new government means for charities and non-profits’. It goes through some of the policies and promises that could impact charities. “It's been reported that 242 MPs in the Labour government have experience in the charity sector, ranging from employees, volunteers and fundraisers. There are also eight members of the cabinet that have worked in charities as opposed to the Conservative government’s cabinet of which only two members had worked in charities, according to an article by Pro Bono Economics.” Read more on our website. #thecharityspark #labourgovernment #charityimpact #newgovernment

Survey Shows UK Charities Facing Increased Demand and Funding Struggles According to a recent Charities Aid Foundation (CAF) survey, 86% of charity leaders have seen a significant rise in demand for their services over the past year, with 54% reporting that it has risen "a lot." This is up from 43% in 2023. Despite the growing need, 18% of leaders are uncertain they’ll have enough funding to sustain their operations by the end of the decade. It's a challenging time for the sector—let's continue to support these essential organisations. #CharitySupport #FundingChallenges #RisingDemand #UKCharities #NonProfit

The increasing pressures on local authorities, health services, and other public sector budgets have heightened the demand for the essential support provided by the charity sector. While this highlights the critical role of charities, it has also intensified the competition between smaller and larger charitable organisations for local contracts. Gary Beharrell, Lloyds Bank Foundation’s regional manager, delves deeper into this issue and explores how larger charities winning local contracts could cause small charities to close. Click the link below to read how commissioners could improve the process for local contracts and create equal opportunities for all charities. https://lnkd.in/e-ZCF7zR #Notforprofit #charitypressures #localcontracts #WeAreMerrifield