Charities Reporting Reduced Donations
The recession has been hitting all parts of the economy and now its effects are being felt by charitable organizations. According to a recent survey, charitable donations have been down by as much as 11% in April alone.
Donations in 2009 are down from those in 2007 -2008 by almost £2 million. Adults in the UK are still giving to charities but donations have dropped on average to £10 per month, which is a reduction of about £1 per month.
These reports come from the Charities Aid Foundation and the National Council for Voluntary Organisations who say that while medical research is still the most popular recipient of donations, religious organizations receive the highest amount of donated monies.
The survey of over 3000 people showed that the people earning the highest salaries were those who reduced the amounts of their donations. Although there are some people who still donate in the form of cash, most people tend to make their donations by direct debit from their bank accounts.
John Low, the chief executive of the Charities Aid Foundation, said, “Even though there are welcome signs the recession is technically ending, the economic downturn is still severely impacting charities, many of which have had to cut jobs while facing increased demand for their services,” said John Low, chief executive of the Charities Aid Foundation. If all taxpayers tick the gift aid box, or give through give-as-you-earn, it would go a long way to make up the shortfall in funding without costing them a penny more.”
The Charity Commission is responsible for overseeing all charities that operate in the UK. According to the research carried out by this commission over half of the charities it surveyed report that their donations are down this year as a result of the downturn in the economy. This reduction is having a serious effect on their abilities to carry out their normal charitable activities.
A spokeswoman for the Charity Commission, Rose Chapman, said, Voluntary income is such an important source of income for charities, so it is vital that charity trustees plan strategically, while hoping that the economic climate improves.”
The result is that the more than 170,000 charities in the UK are experiencing difficulty in gaining momentum in their fund-raising efforts. Competition has developed in this area with many of them competing to bring in well-known names to help them in their advertising blitzes to garner more donations for the various causes. Many of them are cutting back on staff, just like other businesses, and it is possible that more job cuts are coming in this sector.
The surprising thing is that while donations to charitable organizations are down, the demand for their services are rising. According to Andrew Hind of the Charity Commission, payroll deductions to charity are still holding their own. However, it is the one-time large payments that have reduced in size or have disappeared altogether.
Based on the events that occurred in the last recession, it is predicted that donations will start to increase as the recession nears its end.
Tags: highest salaries, sector, charity donations, Voluntary income, salaries, recession
