- 48% of Scottish charities reported a decrease in income this year, as a result of the pandemic
- Almost two thirds (61%) of Scottish charities experienced an increase in demand this year, more than the UK average of 55%
- Almost a half (47%) of Scottish charities anticipate further demand over Christmas
- Across the UK, homelessness/refuge charities saw an 81% increase in demand since the pandemic, followed closed by mental health service charities (77%)
According to the latest report by leading match-funding charity, the Big Give, half of Scotland’s charities would usually secure more than a quarter of their voluntary income during the Christmas period, while a staggering 22% would typically raise between 50 – 75%.
But this year, it’s a very different story as demand will outweigh donations, as almost half (49%) expect donations this year, and over the next 12-months, to be lower than usual.
“We run a Giving Tree at Christmas, ensuring that children who ordinarily would not get a gift do. Last year we handed out over 10,000 gifts to children in the North East of Scotland, we expect demand for this [charity service] to increase this year, as more people are pushed into poverty and having to make real choices, do we eat, do we pay bills or do we buy our children gifts.” – reported one of the Scottish charities which took part in the survey
Christmas is a critical time for charity fundraising, this year more than ever before.
The Big Give saw a 24% increase in applications for their annual match funding campaign, the Christmas Challenge, which offers the public the opportunity to have their donations matched between 1-8 December.
This year charity income was badly impacted by Coronavirus, as high street charity shops have been closed and fundraising events cancelled. The report, in which over 1,000 UK charities were surveyed, reveals that almost half (48%) of Scottish charities reported an income decrease.
“During Lockdown, we had to close our shops, which is our source of income, in order to support our charitable work and the foodbank …” – reported one of the charities which took part in the survey.
Christmas has always been a critical point in the year for vital fundraising, as 50% of the Scottish charities who participated in the survey said that they usually raise a quarter of their annual voluntary income in December, while 22% raise a staggering 50-75% of their income.
Donations aren’t meeting demand
During the year, almost two thirds (61%) of Scottish charities saw an increased demand in their services. And sadly, it’s only predicted to get worse, as the pandemic puts a further strain on charity resources; almost half (47%) anticipate an increase in demand for their services during the Christmas period.
“Our foodbank remained open and we delivered food parcels to those who were isolating. The demand has grown hugely. In order to reopen we had to spend money on ensuring that our shops were safe for customers to return to and for our staff and volunteers to work in. We have reduced the amount of stock in the shops so that we can make them safe, therefore reducing our income.” – reported one of the charities which took part in the survey
Charities are using a variety of tactics to cope but thousands could close
More than one in 10 (13%) of Scottish charities have had to make staff redundancies, while over a quarter (26%) will be restructuring the charity, as preservation measures.
In the UK, 60 of the 1,000 surveyed (6%), are considering mothballing or closing completely. Extrapolated across the sector, this could mean the closure of around 10,000 charities. Smaller charities are particularly vulnerable.
“We are teetering on the edge of collapse if we can’t raise enough funds this Christmas.” – Reported a London-based child welfare charity
James Reed, Chairman and Chief Executive of recruitment company REED, and Trustee of The Big Give, commented: “The disruption caused by Covid-19 is hugely challenging for the charity sector. We are approaching an alarming crunch point where many worthwhile organizations might fail for lack of funds. Now, more than ever, both charities and their beneficiaries need and deserve our support.
Reed added: “Charitable campaigns, such as The Big Give’s Christmas Challenge, provide a vital lifeline for charities and this report clearly highlights why giving this year, no matter how small your donation, is more important than ever.”
Homelessness and refuge charities, and those supporting people’s mental health are particularly vulnerable this Christmas.
While almost a third (31%) of charities across the sector in the UK have already experienced a “double whammy” of decreased voluntary income and increased demand for services since the pandemic, homelessness/refuge charities saw the greatest demand, up 81% since the pandemic hit, followed closed by mental health service charities (77%)
Tom Kerridge, Michelin-starred chef, author and TV presenter, who is backing this year’s campaign, through the charity Only a Pavement Away, commented: “Christmas highlights how important friends and family are and this year more than ever, the idea of not being able to spend it with your loved ones is sad for everyone.
“So imagine being homeless, having no close friends or family to spend it with and that sense of loneliness on what should be a day surrounded by love. This year more than ever, the plight of homeless people is so important and charity is key at this time of year.”
The net effect of Coronavirus has been a decrease in volunteering
Almost half (43%) of Scottish charities reported a decrease in volunteering since the pandemic, likely linked to the lockdown and the social distancing measures put in place. Only 13% of charities have reported an increase, despite community morale being at an all time high, the circumstances of the year has made physical support extremely difficult.
Volunteering at Christmas is likely to be affected as well. The worst-affected sector across the UK this year is Cancer, with charities reporting an 82% reduction in income), followed by hospitals/hospices (79%), animal welfare (67%) and older people (64%).
“As our schemes require face-to-face contact with volunteers, approximately two-thirds of our current volunteers have been unable to volunteer over this period. Our greatest need at present is for new volunteers without underlying health conditions who will be able to volunteer and meet the increasing demand for our services.” – reported Open Homes Nottingham, who provide accommodation for homeless 16 – 25-year-olds
Smaller charities are hardest hit
The decrease in income has hit smaller charities hardest, with the smallest (income under £100k) reporting an average decrease of around half (51%) of their total income. With those charitable cause sectors experiencing the largest drops in income so far, being Armed Forces/veterans causes, sports/recreation, cancer and older people.
Some areas have been worse affected than others, with charities in the South West (76%), East Midlands (69%) and Wales (69%) reporting the greatest reduction in income.
The report was compiled following a survey of 1,011 UK charities was conducted as part of research for the Big Give Christmas Challenge, the UK’s largest online match funding campaign. Since 2008, the Big Give has raised over £135m for charities through match funding. At a critical time for the sector, the 2020 campaign will support over 750 charities across a broad range of sectors, geographies and size.
A number of Scottish charities are participating in the campaign including:
Alzheimer Scotland – Action On Dementia,
This year, the Big Give Christmas Challenge has been endorsed by more than 20 celebrities, including Jo Brand, Sue Perkins, Sir Michael Palin, Tom Kerridge and Sophie Ellis-Bextor, to name a few, all of whom feature in the campaign’s official video – https://youtu.be/nTO-NsK__Gc
For further information on the Big Give Christmas Challenge, or to donate, visit: theBigGive.org.uk
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