Recession gives charities money worries

Charities are worried about their future sources of funding and most expect to see a fall in overall income over the next 12 months according to new research from PricewaterhouseCoopers.

The latest in PwC’s Managing in a Dowturn survey series, based on research with members of the Charity Finance Directors' Group and the Institute of Fundraising undertaken in November 2009, reveals that charities remain cautious about the future despite the economic upturn. But charities are more positive than they were in May 2009, when the survey showed that finance directors rather than fundraising directors had the greatest fears about loss of income.

That situation has now reversed, with fundraising directors currently more anxious than finance directors in all areas except corporate donations. Their principle focus of concern is the widely predicted cuts in government spending, although there is uncertainty about the timing of any reduction in public funding and some respondents do not anticipate problems until 2011.

In response, some 40% of all respondents are focusing their investment in corporates and 44% on major donors, a clear increase from previous surveys.