NCVO warns of 'even more pressure on charities' in 2017

(via NCVO)

By Christine Weakley

Charities should expect to see income from donations and government grants continue to be squeezed while demand increases, NCVO has warned in its annual review of the operating environment. 

The Road Ahead: A review of the voluntary sector's operating environment, published today, says that the combined effect of decreased public funding and pressures on donations “will put even more pressure on charities and their volunteers, especially the smaller ones that have been struggling for a long time already”. 

Because inflation is expected to be above the Bank of England’s target of 2 per cent charities should be aware that “donations will be worth considerably less by 2020 than previously expected”. 

NCVO said that the “poorest households are still expected to be over 10 per cent poorer by 2020” and that all households will be affected by pressure on income, “with average disposable income expected to grow just 0.1 per cent in 2017 and stay well below previous forecasts into the 2020s – potentially placing pressure on donations”.

NCVO also predicted that income from government sources will fall. 

“Charity income from government sources has previously tracked departmental spending fairly closely,” the report says, “so it is likely that it will continue to fall at least in line with the spending cuts. A particularly sharp drop in spending is expected between 2018/19 and 2019/2020.”

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