This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/society/2020/mar/16/charities-face-cash-crisis-as-virus-fears-hit-fundraising

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Charities face cash crisis as virus fears hit fundraising Charities face cash crisis as virus fears hit fundraising
(32 minutes later)
Voluntary sector calls for government grants after crucial fundraising events are cancelled because of Covid-19 Voluntary sector calls for government grants after crucial events are axed
Voluntary-sector leaders are warning that a financial crisis caused by the likely cancellation of hundreds of fundraising events due to coronavirus fears could undermine charities’ ability to support vulnerable beneficiaries.Voluntary-sector leaders are warning that a financial crisis caused by the likely cancellation of hundreds of fundraising events due to coronavirus fears could undermine charities’ ability to support vulnerable beneficiaries.
With expected losses for the sector likely to run into hundreds of millions of pounds, and many organisations already struggling financially, charities have called on ministers to provide “substantial, simple and swift” cash grants to support frontline charities “who help knit communities together”.With expected losses for the sector likely to run into hundreds of millions of pounds, and many organisations already struggling financially, charities have called on ministers to provide “substantial, simple and swift” cash grants to support frontline charities “who help knit communities together”.
Karl Wilding, chief executive of the National Council for Voluntary Organisations (NCVO), said: “We need an emergency package for charities on the frontline of our communities. But this is not about the impact on charities, it is about the impact it will have on communities and individuals who rely on charities.” Karl Wilding, the chief executive of the National Council for Voluntary Organisations (NCVO), said: “We need an emergency package for charities on the frontline of our communities. But this is not about the impact on charities, it is about the impact it will have on communities and individuals who rely on charities.”
The cash-crisis warnings follow the postponement of next month’s London marathon, which last year raised £66m for hundreds of charities. Another sponsired event, Scotland’s Kiltwalk, was called off at the weekend after the Scottish government banned gatherings of more than 500 people last week. The series of four Kiltwalks last year raised more than £5m for some 1,000 charities. The cash-crisis warnings follow the postponement of next month’s London marathon, which last year raised £66m for hundreds of charities. Another sponsored event, Scotland’s Kiltwalk, was called off at the weekend after the Scottish government banned gatherings of more than 500 people last week. The series of four Kiltwalks last year raised more than £5m for some 1,000 charities.
Daniel Fluskey, head of policy at the Institute of Fundraising, said: “There will be a financial hit and charities are already revising down income estimates for this year. No charity is going to be insulated from this.” Daniel Fluskey, the head of policy at the Institute of Fundraising, said: “There will be a financial hit and charities are already revising down income estimates for this year. No charity is going to be insulated from this.”
Wilding said charities that should be prioritised for government help included those that provide support services such as befriending or community transport, food banks and local homelessness charities, and those providing care and support for older people and those with underlying health issues. Wilding said charities that should be prioritised for government help included those that provide support services such as befriending or community transport, food banks and local homelessness organisations, and those providing care and support for older people and those with underlying health issues.
The sector is also discussing the impact of coronavirus on both their staff and the UK’s volunteers, especially if social-distancing guidance is issued by the government. People aged over 65, who could be subject to restrictions on leaving their homes, make up most of the nation’s regular volunteers. The sector is also discussing the impact of coronavirus on staff and volunteers, especially if social-distancing guidance is issued by the government. People aged over 65, who could be subject to restrictions on leaving their homes, make up most of the nation’s regular volunteers.
The health secretary, Matt Hancock, said at the weekend that charities would “need to be part of the national effort to support the shielded”, along with government, local councils, and friends and neighbours. The health secretary, Matt Hancock, said at the weekend charities would “need to be part of the national effort to support the shielded”, along with government, local councils, and friends and neighbours.
WellChild, a charity for children with serious health problems, said it was “totally reliant” on fundraising, with more than 60% of its £3m annual income coming from events. “The money we typically raise from events, now at risk of cancellation, is the equivalent of almost 80,000 hours of specialist care from a WellChild Nurse,” it said.WellChild, a charity for children with serious health problems, said it was “totally reliant” on fundraising, with more than 60% of its £3m annual income coming from events. “The money we typically raise from events, now at risk of cancellation, is the equivalent of almost 80,000 hours of specialist care from a WellChild Nurse,” it said.
About half of the biggest 25 UK charity-owned fundraising events – which between them raised more than £133m in 2018 – involve the mobilisation of thousands of sponsored participants in runs, walks and cycle rides, with medical research and health charities among the principal beneficiaries.About half of the biggest 25 UK charity-owned fundraising events – which between them raised more than £133m in 2018 – involve the mobilisation of thousands of sponsored participants in runs, walks and cycle rides, with medical research and health charities among the principal beneficiaries.
Among those benefiting from the London marathon in 2019 were the Alzheimer’s Society and Alzheimer’s Research UK, which shared £4m, the disabled children’s charity Whizz-Kidz and Macmillan Cancer Support, which received more than £1m each, and the housing charity Shelter, for which nearly £500,000 was raised by runners.Among those benefiting from the London marathon in 2019 were the Alzheimer’s Society and Alzheimer’s Research UK, which shared £4m, the disabled children’s charity Whizz-Kidz and Macmillan Cancer Support, which received more than £1m each, and the housing charity Shelter, for which nearly £500,000 was raised by runners.
Charity leaders also warn that the cancellation of local fundraising events – such as fetes, coffee mornings, concerts, gala dinners and pub quizzes – because of fears around coronavirus infection – could have a devastating effect on smaller community groups, many of which have minimal financial reserves.Charity leaders also warn that the cancellation of local fundraising events – such as fetes, coffee mornings, concerts, gala dinners and pub quizzes – because of fears around coronavirus infection – could have a devastating effect on smaller community groups, many of which have minimal financial reserves.
The need for financial support for struggling charities – in line with that offered to smaller and medium-sized private businesses in last week’s budget – was raised by voluntary-sector leaders when they met officials at the Department for Digital, Culture, Media & Sport on Friday to discuss the sector’s role in supporting public services, communities and vulnerable individuals during the coronavirus outbreak. But charities fear that without urgent financial help, there will be a struggle to maintain services.The need for financial support for struggling charities – in line with that offered to smaller and medium-sized private businesses in last week’s budget – was raised by voluntary-sector leaders when they met officials at the Department for Digital, Culture, Media & Sport on Friday to discuss the sector’s role in supporting public services, communities and vulnerable individuals during the coronavirus outbreak. But charities fear that without urgent financial help, there will be a struggle to maintain services.
The financial impact on charities ranges from cashflow problems to guaranteed losses. Peter Lewis, chief executive of the Institute of Fundraising, blogged: “Lost income for just one charity I know [is] over £2m, with the likelihood that this event could not happen again until the next financial year.” The financial impact on charities ranges from cashflow problems to guaranteed losses. Peter Lewis, the chief executive of the Institute of Fundraising, blogged: “Lost income for just one charity I know [is] over £2m, with the likelihood that this event could not happen again until the next financial year.”
One charity manager told the Guardian: “If there is a lockdown, lots of charities have no cash reserves, and they are reliant on fundraising events, which are being cancelled. Whatever financial support is in place for small businesses must be also put in place for charities.”One charity manager told the Guardian: “If there is a lockdown, lots of charities have no cash reserves, and they are reliant on fundraising events, which are being cancelled. Whatever financial support is in place for small businesses must be also put in place for charities.”
The introduction of formal social distancing, self-isolation and quarantine guidance nationally could also deplete Britain’s volunteers, on whom many local services rely. About 12 million people volunteer at least once a month, with the highest rates among the over-65s.The introduction of formal social distancing, self-isolation and quarantine guidance nationally could also deplete Britain’s volunteers, on whom many local services rely. About 12 million people volunteer at least once a month, with the highest rates among the over-65s.
Already some charities who work closely with people with compromised immune systems are issuing volunteer guidance to minimise the risk of infection. The Motor Neurone Disease Association has advised its team of volunteers who carry out “befriending” visits providing tea and chat to beneficiaries to stop home visits and use phones or go online instead. Already some charities who work closely with people with compromised immune systems are issuing volunteer guidance to minimise the risk of infection. The Motor Neurone Disease Association has advised its volunteers who carry out “befriending” visits providing tea and chat to beneficiaries to stop home visits and use phones or go online instead.