Most charities are worried about whether they can survive the cost-of-living crisis and are using reserves to cover core costs, according to research published today.
Some 51% of charities said they were using their reserves to cover core costs, compared to 40% a year earlier, according to the Charities Aid Foundation (CAF) survey.
And 55% said they were worried about struggling to survive in the current economic climate, compared to 52% a month ago.
Almost a quarter said that they have made cuts to services but now have no room to cut further.
Some 49% of the 324 charities surveyed in November felt very confident they had the funds to meet demand for their services, compared to 58% a month before.
Two-thirds said a decline in fundraising income concerned them, while three-fifths said they were worried about increasing costs, such as energy.
And almost two-thirds reported that demand for their services had increased compared to this time last year, including a third who had seen demand grow significantly.
‘Sector responding to triple threat’
Neil Heslop, chief executive of CAF, said: “Charities are running out of options, forcing them to rely on their reserves and cut back on the services they provide.
“This research provides stark evidence about how the sector is responding to the triple threat of soaring demand, falling donations, and rising costs.
“The government needs to recognise the critical role that charities are playing to care for those who are most vulnerable in our communities.
“As a start, these organisations should be placed first in the queue to receive additional support for energy bills from April.”
The research is based on polling with 675 charities across October and November. Half of the charities surveyed had an income of less than 100,000, a third had an income between £100,000 and £500,000 and a sixth had an income over £500,000.
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