Credit crunch affect charities

According to recent reports around 25% of charities in the UK have seen the level of money coming in from consumers drop over the past twelve months, as cash strapped households rein in their spending in a bid to try and weather the effects of the global credit crunch. Many people are apparently unable to give to charities in the same way as before because money is so tight due to higher living costs, tighter credit conditions, and soaring inflation.

A number of charities have also had to make people redundant as a result of lack of funding according to the report. The study was carried out by the Charities Commission and involved surveying around five hundred UK charities. In addition to falling donation levels and fewer staff members, some charities had also seen the demand for their services go up by over 20%, in particular charities dealing with elderly people, homelessness, and social care.

An official from the Charity Commission stated: “Even before last week’s problems with Icelandic bank collapses, some charities were really being squeezed by higher costs and higher demands for vital services. They will wonder how they are going to survive the current crisis while trying to continue meeting people’s needs.”

She urged consumers to try and give to charities wherever possible, adding: “They need our help more than ever.”

The homeless charity Shelter said that it had seen a massive rise in demand for its services, as more and more people were experiencing problems relating to the ongoing financial crisis.

One official from the charity said: “People are struggling with their mortgages and are facing repossessions so they are calling our helpline to ask for advice.”

Tags: credit crunch, homeless charity, higher demands, bid, charity