Credit crunch already hitting charity donations

Charities face a struggle for funding as the spending power of donors shrinks during the economic downturn, a voluntary sector leader said yesterday.

Clare Tickell, chief executive of Action for Children, said there was already evidence of this in her keynote address to Community Care Live Children and Families.

“Charities may lose out as donors feel the pinch. There will be increasing competition for donations,” she said.

Tickell added that the harsh financial climate may lead to an increase in referrals as more children and families experience “problems at home and in the wider community”.

Her comments came a fortnight after a survey by the National Council for Voluntary Organisations revealed that nearly half of charities felt they would be worse off during the slump. A separate study by the Charity Commission found one in four organisations reporting a drop in donations in the past year.

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External information

Action for Children – official website

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