Bleak figures from the charity regulator

Data from OSCR has revealed one in four small charities have stopped operating because of the pandemic.

The stark figure was revealed by the Office of the Scottish Charity Regulator after it released full details of its Covid impact study.

It found that nearly one in five charities (18%) had suspended all operations but this figure rose to over one in four (27%) for smaller charities whose annual income is less than £25,000.

However less than one in 20 (4%) of charities whose annual income is £100,000 or more had suspended all operations.

Around two fifths (39%) of all charities had suspended some operations, but this was 50% of charities with income of £100,000 or more, compared to 24% of charities with income under £2,000.

And four out of five charities that received income from donations and fundraising have reported a decrease in their income, with those established more than 50 years ago and religious charities most affected.

A total of 88% of arts and culture, and sports and recreation charities reported lost income from trading.

More than four-fifths of charities said their financial viability was under threat in the next two years, and 12% of respondents described this threat as critical.

This figure rises to 18% for mental health charities and social care charities working with children and families.

Maureen Mallon, the regulator’s chief executive, said in a blog post: “Our research shows that many now face significant financial challenges if they’re to continue this essential work when we start to rebuild and recover in 2021.

“I hope that by releasing the full data from our research, sector leaders and policymakers can begin to take the steps required to ensure a more stable future for this vital sector.”