Charities: building resilient finances

Charity finances are under pressure with income expected to fall by £5bn so it is more important than ever to keep a tight grip on costs, explains Jonathan Orchard, partner at Sayer Vincent

The last couple of years have been extremely challenging for the charity sector with the Covid-19 pandemic. The sector has shown incredible resilience, but there are now more uncertainties ahead with the cost of living crisis and the war in Ukraine.

Charities once more may be asked to do more, with less income. The financial squeeze could see a close to £5bn shortfall in charity income in 2022 compared to what might have been expected back in 2019, according to Pro bono Economics.

Resilience is about coping with an uncertain future. Charities need to ensure that the work they do and the social impact they have, can continue regardless of what challenges lie ahead.

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