They sensibly highlight that charities come in all shapes and sizes – some are tiny with just a couple of volunteers, whilst others are very large with hundreds of staff, so the results were never likely to be consistent across the sector. However they have reached some notable conclusions:
Over 90% of charities say they have been negatively impacted by Covid-19. Many will have been hit financially, but others have struggled with service delivery, availability of staff and volunteers, or staff morale. However the vast majority of charities are soldering on and are still operating
40% of charities dipped into their reserves during Covid-19. Many survived with the help of Government grants, including Furlough.
Nearly half said they had to change the way they delivered services, often due to lockdown restrictions, but sometimes due to financial or staffing constraints
Some Trustees reported that the pandemic has led to better relationships with the local community and statutory authorities. However another common feature of the research was the reported strain on relationships and governance arising from the lack of face to face contact
In my view, although there is nothing earthshattering or surprising in this research, it does highlight the need for charities to have a strong Trustee and executive team, who remain focused on the charity’s objectives. Even if the worst of Covid-19 is behind us, there will always be more challenges down the line. I’m confident the sector is strong and resilient to weather whatever is thrown at us
The next steps
For more information, please contact Roger Merchant or your usual UHY adviser.
