Many organisations have seen significant proportions of their traditional funding streams cancelled during the pandemic and many are experiencing huge un-forecasted and unplanned losses of income.
Centres have been closed, fundraising events have been cancelled, donations have dropped due to the impact of personal and global financial circumstances. Large benefactors have been unable to donate due to financial uncertainty and collecting tins have remained empty in closed pubs and restaurants.
Organisations have reported losses of up to £1,000,000 in their forecasted income this year, whilst the resources of small charities have been decimated by losses in the region of £7,000 (eliminating up to 90% of their income).
A small local organisation that supplies transport for vulnerable people so they can attend medical appointments has reported that their income has dwindled to practically nothing due the Covid-19 crisis.
A Counselling Service has seen a 70% drop in income whilst facing a huge increase demand for their service.
A larger organisation in Surrey advised:
“At this time, we are facing a sudden and unexpected financial loss of over £500,000 and do not yet know the long-term financial deficit we can expect to see across this year and facing additional costs to battle Covid-19. In the first quarter alone, we anticipate it will be in excess of £1m, as such we face acute financial hardship. We have taken many measures to help ourselves through this crisis and had to take the difficult decision to place 80% of our staff on furlough and were forced to temporarily close our retail stores, sister charities and services.”
A local advice and support group advised us that the current restrictions mean that they have not been able to hold monthly high street collections which traditionally has been their main source of regular income and generate about £400 per collection. They estimate that some or all of the anticipated £10,000 fundraising income could be lost over the year. Not only has the group lost a significant amount of its income, it is incurring additional costs as a result of Covid.
Another organisation advised that:
“The financial impact of Coronavirus is potentially huge – we are not anticipating being able to generate income effectively for most of this financial year, and the most recent forecast shows that we are set to have a deficit of £100,000 this year”.
A local charity reported:
“Due to Covid-19 we have lost three income streams for our charity. The combined value of these income streams is £400,000 over a 12-month period”.
Another organisation advised us:
“Current restrictions will have a significant and devastating impact on our budget, which is heavily reliant on an ongoing programme of small community fundraising and a large public event in the autumn. Projections leave us with a deficit of between £40,000-£65,000. Whilst we are fortunate enough to hold heathy reserves to cover some of this; our core service delivery is still at risk, and we desperately need additional funding to ensure we can continue to support vulnerable families in this time of extreme crisis”.
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