The charity sector faces a £10.1bn funding shortfall over the next six months as a result of Covid-19, according to analysis from economists.
Sector bodies previously estimated that charities would miss out on at least £4.3bn of income over the 12 weeks commencing in mid-March. Nine in ten respondents, 88%, said that they expect Covid-19 to reduce their income over the coming six months relative to pre-crisis plans, and well over half, 59%, reported that they have had to “significantly” reduce their activity in response.
“The limitations of the government's response so far are increasingly clear - the whole economy is suffering and of course, there is not endless money but there is more that could be unlocked without burdening taxpayers, such as dormant assets.”
Many charities have sought additional funding, with half stating that they have applied for emergency support from non-government sources and more than one in three applying for a share of the support earmarked for the sector by the government.
These sources are not available to all, and 12% of charities say they “expect” to cease operating altogether before the start of December.
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