Date posted: 23rd May 2024
For the first time since the pandemic the charity sector is positive about the future, despite challenges in recruitment and rising costs, according to a comprehensive new report.
The Kreston Charities Report 2024 offers an in-depth analysis of more than 80 UK charities, highlighting a mixed financial landscape in the face of ongoing economic challenges. Despite a complex economic climate, nearly half of the surveyed charities have a positive financial outlook for 2024.
The report, a product of Kreston UK’s extensive network, which includes Clive Owen LLP, which has offices in Darlington, Middlesbrough, Durham and York, also sheds light on the significant struggles with rising operational costs and recruitment difficulties.
Chris Beaumont, charities partner at Clive Owen LLP commented on the findings: “Despite the economic headwinds and the sector’s internal challenges, it’s encouraging to see a prevailing sense of resilience among UK charities. Our role is to support these vital organisations in navigating their paths forward, ensuring they continue to deliver crucial services across the country.”
Key findings indicate a substantial impact from increased costs of living, with significant repercussions on wages, energy, and insurance outlays.
They include:
- Almost half of the charities believe their financial prospects for 2024 are optimistic.
- 81% have seen an increase in wage costs, 76% in energy costs, and 78% in insurance costs over the last year.
- 54% of charities report difficulties in recruiting and retaining staff, with 29% finding it harder than last year.
- 67% of charities are exploring new avenues for income to mitigate financial instability.
- Over three quarters of charities are confident in their ability to continue delivering required services despite financial and operational challenges.
Chris Beaumont added: “Charities are undoubtedly facing increased demand for their services but this is not necessarily being matched by increased funding and volunteers.
“MPs have been discussing workplace volunteering initiatives, which Clive Owen LLP already has in place, and Civil Society Minister Stuart Andrew wants to encourage more corporate social responsibility. It is important that the Government is showing its commitment to tackling the issues faced by the charity sector, and the vital role it plays in delivering services, often to the most vulnerable”
You can download the Kreston Global UK Charities Report 2024 here.
