One in five charities could be forced to close due to financial difficulties

In research, coming as part of its new Cost of Giving Crisis campaign, it also found that 85% believe this winter will be as tough as last year, with 54% saying it’s going to be tougher. Meanwhile, 73% say they cannot meet the current demand for the public services they deliver with the funding they receive, while a further 40% said their grants or contracts never covered the true costs of delivery.

Off the back of this, the organisation has written an open letter to chancellor Jeremy Hunt urging him to address the “continued underfunding of contracts and grants” in the upcoming Autumn Statement, taking place later this week (22 November).  

Speaking to The Guardian, the NCVO’s chief executive Sarah Vibert said: “It’s potentially catastrophic for communities if these services stop. Many services, like homelessness interventions and support for victims of domestic violence or sexual abuse, wouldn’t currently exist without charities.

“For too long, the goodwill of charities has been taken for granted. [Public sector contracts managers] know charities will do everything possible, including subsiding public services with charitable funds, to prevent closing their door to someone. But this can’t continue.”