09 April 2020
The announcement of a £750m package to help charities who are struggling due to the Coronavirus pandemic was announced by the Government on 8 April. This followed concerns from the start of the crisis in the UK that charities funding would suffer a severe drop in donations and financial support at a time when demand was likely to increase.
What has been promised?
The outlined package includes:
- £370m for frontline charities including hospices and domestic abuse charities
- £360m provided for smaller charities, administered by the National Lottery Community Fund
- a minimum of £20m in matched donations as part of the BBC’s Big Night In fundraising event
The Chancellor did acknowledge in this announcement that the Government cannot help all charities or cover the entire shortfall in funding.
Background
Charities have been struggling, with a number already having furloughed significant members of staff. Food banks were immediately identified as ‘at risk’ and retailers have made efforts to support them as a result. Charities protecting vulnerable and ‘at risk’ members of society have received deserving recognition as needing support.
The third sector is integral to social policy and delivery; which David Cameron recognised with his commitment to ‘Big Society’ based on the concept of Civil Society. The UK needs the sector to continue to deliver during the current health crisis. It also needs to be in a position to continue to perform its critical role when the health crisis is resolved and other pressures arise – most likely an economic downturn.
Providing the funding
The UK has a sophisticated delivery mechanism for distributing public money through grants. The £370m for frontline charities will be delivered through Government departments and the £360m for small and mid-sized charities through a lottery distributor, which is already focused on supporting local charities.
The commitment to match funding from the BBC event perhaps reflects the ‘we are in this together’ message and reinforces the unique role of the BBC as our public service broadcaster.
More information
Further guidance for the charity sector regarding the financial support available and various other reliefs was issued by the Charity Commission on 7 April 2020. More information can be found on the Government website: https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector and in our summary of this guidance in our own charity blog.
For more information, please get in touch with your local UHY charity and not for profit expert for further advice specific to your charity.
