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Charity donations down 20% - Charities Aid Foundation Charity donations down 20%, says UK Giving 2012 report
(about 3 hours later)
 
Donations to charity have fallen by 20% in real terms in the past year, with £1.7bn less being given, says a report.Donations to charity have fallen by 20% in real terms in the past year, with £1.7bn less being given, says a report.
The amount fell from £11bn to £9.3bn in 2011/12 - a fall of £2.3bn when adjusted for inflation, the study said.The amount fell from £11bn to £9.3bn in 2011/12 - a fall of £2.3bn when adjusted for inflation, the study said.
The number of people donating fell - as did the amounts they gave, from an average of £11 to £10 a month.The number of people donating fell - as did the amounts they gave, from an average of £11 to £10 a month.
The report, based on a survey of 3,000 people, was compiled by the Charities Aid Foundation and the National Council for Voluntary Organisations. href="http://www.ncvo-vol.org.uk/sites/default/files/uk_giving_2012_full_report_1211.pdf" >The report, based on a survey of 3,000 people, was compiled by the Charities Aid Foundation and the National Council for Voluntary Organisations.
The survey was carried out by the Office for National Statistics. The CAF and NCVO said Britain remained a "generous and compassionate society", but charities were nonetheless facing a "deeply worrying" financial situation.
Charities were facing a "deeply worrying" financial situation, the CAF and NCVO warned. "Some are having to close front-line services. And some are having to make redundancies. We are painfully aware that some face closure."
They said some had been forced to cut back frontline services and make staff redundant or were even facing closure because of the fall in income. It said it suspected small and medium sized charities were being disproportionately affected by the reductions in giving.
They launched a Back Britain's Charities campaign, urging individuals and businesses to give what they could. The charity KIDS, which supports disabled children across England, said it had to lose 44 staff last year, after being hit by both the public spending cuts and a fall in donations.
And they called on the government to modernise Gift Aid and to ensure that public bodies do not disproportionately cut funding for charities when seeking budget savings. It tried to protect frontline services and the biggest losses were in central office staff, it said - "but this then has knock-on effect as it both affects our ability to fundraise and makes it very difficult for overstretched staff when the unexpected happens."
Cash most commonCash most common
The fall in giving is the largest one-year decline in the Survey of Individual Giving's eight-year history. The fall in giving is the largest one-year decline in the survey of individual giving's eight-year history, and the total given is the smallest in real terms since the survey began.
The report found that 28.4 million people gave to charity during 2011/12 - more than half of all UK adults.The report found that 28.4 million people gave to charity during 2011/12 - more than half of all UK adults.
But the proportion of people donating to charitable causes in a typical month fell from 58% to 55%. But the proportion of those donating in a typical month fell from 58% to 55%.
A larger proportion of women (58%) than men (52%) gave to charity.A larger proportion of women (58%) than men (52%) gave to charity.
Medical research, hospitals and hospices and children and young people were the most popular causes among donors, but religious causes received the largest average donations. Women aged 45-64 and above 65 were the groups most likely to give, with the youngest adults, aged 16-24, the least likely to give.
And cash was the most common form of giving, accounting for 50% of donations. Direct debits accounted for 31% of the total, an increase of 6% on the previous year. By category, "religious causes" received the largest percentage of donations, being given 17% of all money donated.
CAF chief executive John Low said the fall was "deeply worrying" for those charities which rely on donations to provide vital frontline services. Medical research and hospitals received 15% each of all money donated, with children's charities receiving 11% and "overseas" 10%. Animal charities got 5%.
Cash remained the most common method of giving, with half of donors using this method, followed by direct debit (31%), buying goods (25%) and buying raffle tickets (22%).
Only 5% and 3% of donors gave using membership fees/subscriptions and payroll giving.
CAF chief executive John Low said the fall in giving was "deeply worrying" for those charities which rely on donations to provide vital frontline services.
"Combined with public spending cuts, this represents a potentially severe blow for many charities."Combined with public spending cuts, this represents a potentially severe blow for many charities.
"We hope the fall in giving shown in our survey is a temporary decline and not the start of a damaging trend.
"If donations continue to fall, many charities will face profound difficulties carrying on their work and the people and communities they serve will suffer.""If donations continue to fall, many charities will face profound difficulties carrying on their work and the people and communities they serve will suffer."
He added: "Britain remains one of the world's most generous nations. But cash is tight for everyone and people are finding it harder and harder to find money to give to charity." The research did not try to establish why less is being given to charity, but Mr Low said: "Cash is tight for everyone and people are finding it harder and harder to find money to give to charity."
Affordable loansAffordable loans
NCVO chief executive Sir Stuart Etherington said: "I am very worried that fewer people are giving to charity. NCVO chief executive Sir Stuart Etherington said: "Charities are already being squeezed by greater needs, cuts in funding and rising costs.
"Charities are already being squeezed by greater needs, cuts in funding and rising costs.
"I know people want to help when they can and I know that they can make a difference.
"If I could ask one thing, I'd ask people to commit to regular donations through direct debit, and give using Gift Aid, so charities can plan properly."If I could ask one thing, I'd ask people to commit to regular donations through direct debit, and give using Gift Aid, so charities can plan properly.
"We cannot afford to lose the services charities provide.""We cannot afford to lose the services charities provide."
A government spokesman said it was working to stimulate giving through initiatives such as new tax incentives, "committing £50,000 match-funding to encourage people to support local charities and our £100 million transition fund, which is helping them to adapt to the new economic environment". The two bodies called on the government to modernise Gift Aid and to ensure that public bodies did not disproportionately cut funding for charities when seeking budget savings.
"We have also introduced new ways for the sector to finance itself through Big Society Capital, capitalised with £600m, which gives charities access to affordable loans and investment to grow, so they can do more." A government spokesman said it was working to stimulate giving through initiatives such as new tax incentives, match-funding, its transition fund, and Big Society Capital.
He said the government gave significant support through the tax system to encourage giving - "over £1bn went to charities last year through Gift Aid". He said the government gave significant support through the tax system and was also introducing a new Gift Aid small donations scheme. It was making it easier for charities to claim Gift Aid, and had proposals for the reform of payroll giving.
"We are also introducing a new Gift Aid Small Donations Scheme, which will deliver an extra £100m a year for charities. The survey was carried out by the Office for National Statistics, and collected information from adults aged 16 and over in Great Britain. The survey, part of its Omnibus survey, is run three times a year and carried out face-to-face in people's homes.
"And we are making it easier for charities to claim Gift Aid, and will shortly bring forward proposals for the reform of payroll giving to encourage more people to give out of their salaries."
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