Charities need to diversify funding base

Financial pressures are hitting the charity sector as the fallout from the pandemic affects day to day running of charities

Finance worries remain one of the main concerns for charities. According to CAF’s Charity Landscape Report, the top challenges cited by charity leaders were generating income and achieving financial sustainability (58%), followed by meeting demand for services (30%).

A fifth (21%) of charities said that they planned to use charity reserve funds to cover income shortfalls rather than for capital expenditure – this was twice as many as in 2019 (10%).

Over the next three years, charity trustees intend to focus on achieving financial stability, growing sustainably, and increasing their influence and impact.

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