Charities to lose out on £279million due to cost of living crisis | Personal Finance | Finance

Charitable giving in the UK is set to fall by as much as £279million over the next year – with the cost-of-living crisis cited as the main reason, according to research out today.The findings show charities have been surprisingly resilient in recent years, with greater generosity making up for less Government support.

But the crisis means their business models may have to evolve significantly to remain sustainable as household finances continue to be squeezed.

The average donation is set to drop by up to £7.92 a year per person, the research claims.

Replicated across the population, it will cut donations by as much as £279million.

Work by London firm Stack Data Strategy and a report from the Social Market Foundation (SMF) think-tank, supported by fundraising platform Omaze, found that just 24 percent of the people asked could afford to donate more than £20 in one go – 53 percent could manage £1 to £10.

Four in ten people who gave to charity in the last three years say they now give less and four in five of those blamed the rising cost of living.

Almost every age group expects their giving to fall over the next year; just 10 percent say it will increase.

The two youngest age groups (18-24 and 25-34) were the least likely to have donated, sparking fears for the sector’s longer-term financial survival.

In response the SMF today sets out policy recommendations to support the sector longer term, including Government support and the need for innovation across the sector.

It suggests that Government agencies could work together to cut regulatory requirements.

The SMF found that smaller charities especially struggle to manage the cost and administrative challenges of keeping up with tax, accounting and data protection rules.

Gideon Salutin, who led its research, said: “It’s time for the Government and charities to work together to find solutions to ensure their long-term sustainability.”