Probate grant backlogs are causing charities to make redundancies and put vital services on hold, according to a new study.
Research commissioned by investment firm Rathbones showed that 99% of 101 senior executives at UK charities were affected by delays in probate grants.
Some 51% said they had to cut back on the services they provide, while 43% had to fill the financial gap by selling properties.
Just over a quarter of charities had to make redundancies because of the delays.
Meanwhile, eight in 10 charities said the delays were impinging upon their charity’s recruitment programme and 42% said that as much as between 15% and 30% of their income was held up because of these delays.
Millions of pounds on hold
Andy Pitt, head of charities at Rathbones said: “Significant delays with probate are causing charities to miss out on millions of pounds of income, which they need to be able to fund vital services and life-saving research.
“The logjam is not only adding to the financial stress of grieving families, with property sales falling through or having to pay interest payments on inheritance tax, – but is also resulting in many senior charity executives having to make difficult decisions on how to cope with hindered cash flow.
“They don’t know how long they could be waiting to receive these much-needed funds and it’s impossible to budget or plan for the future.”
Related articles
