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The voice of Scotland’s vibrant voluntary sector

Published by Scottish Council for Voluntary Organisations

TFN is published by the Scottish Council for Voluntary Organisations, Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh, EH3 6BB. The Scottish Council for Voluntary Organisations (SCVO) is a Scottish Charitable Incorporated Organisation. Registration number SC003558.

Cost of living crisis hits donations hard

 

Public are tightening their belts when it comes to giving

Research from Charities Aid Foundation (CAF) shows cost of living pressures are affecting donations to charities.

Two million fewer people in the UK said they had donated to charity amid growing fears about the cost of living.

In February, only a quarter (25%) of people donated to charity in the past four weeks. This figure is significantly lower than the usual average for the month (29%), meaning that around 2m fewer people donated to charity than usual.

With many cutting back on discretionary spending, around one in 10 (12%) people reported last month that they plan to cut back on charity donations.

However, as more families face financial struggles with the increased cost of living, previous research from CAF found that nearly nine in 10 (86%) charity leaders anticipate that demand for their services is likely to increase.

The survey, which is based on research among more than 1,000 UK adults, found that 12% of people said they actively planned to cut back on charitable donations in light of higher bills and rising inflation.

Just one in four members of the public said that they would not be cutting back on any spending.  

Alison Taylor, CEO of CAF Bank and Charity Services, Charities Aid Foundation, said: “The pandemic has highlighted the vital role that charities play in our society, including those who work and volunteer for them.

“The cost-of-living crisis makes the value of charities’ work more visible than ever, while also placing these same charities under significant pressure as they seek to deliver their essential services and meet increasing demand from their communities.

“Even when household finances are being squeezed, we have been struck by how people continue to support the charity sector, seen for instance in the incredible public response to the DEC Ukraine Humanitarian Appeal.

“The most important thing is to make sure your donations are given effectively by taking advantage of the tax benefits on offer.

“There are also many other ways for people to support the work of charities that do not involve giving more money, such as volunteering your time and skills, which can make a huge difference.”

 

Comments

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David
5 months ago

Not what I have seen. People are giving at public events as they did. Scotland strives to fund our third force at that grassroots level. Because it's a choice or tax to have these as part of our nation. Contactless is increasing. Volunteers however are less as they seek to stabilise their own fiances they have less volunteering time. What is being hit is direct debits and regular giving like that. That model was on its last legs anyway with very few public authorities and businesses allowing that on their ground (in fact banning it), but this will finish it. Corporate donations are okay but slower. Grants are okay but more selective. Endowments such as wills are steady but the potion of estates is shrinking. You need to perform in this climate. Need to be seen to do so. WordPress vapourware sites won't cut it funders want to see you performing at the highest level. Those that had been dragging along, services not so good, staff heavy not enough TRUE volunteers those charities are in big trouble. This is not a climate for top-heavy charities. You'll see little ones taking on more and more as they have better links to communities and true volunteers.