UK firms are being asked not to completely close CSR schemes, with charities facing a £4billion funding shortfall amid the coronavirus crisis, warns Philip Webb, founder and managing director of Investors in Community, one of the UK’s leading online giving platforms.
Experts believe nearly 80 per cent of Britain’s 169,000 registered goodwill causes are at risk of closure, with the vast majority of fundraising activity on hold, events cancelled, and charity shops closed, leading to a stark drop in overall donations.
Discussing the challenges ahead, Philip said:
“Lots of charities are at risk of not being able to continue and, despite a number of high-profile names establishing emergency funds or community support schemes, more must be done to help those in need.
“It’s estimated that the majority of small-scale charitable organisations have around three months’ cash reserves, leaving little or no spare capital to fall back in the event of short-term cash flow problems or a reduction in public and business giving.
“As a platform that connects businesses and charities, we also know just how much charities rely on the support of companies in terms of fundraising, volunteer hours and donations. Many of these businesses are worried about surviving themselves right now, so a lot of CSR activity has been put on hold, however it’s vital that these partnerships are maintained wherever possible.”
As Covid-19 continues to cause immense disruption to public life, many charities are noticing a surge in demand – with the most vulnerable becoming increasingly reliant upon their services, combined with a significant drop in overall donations, leading to potentially devastating consequences.
In fact, a number of national charities have already issued warnings, calling for urgent government intervention and financial support, with local councils announcing a range of local initiatives to help prevent the charity sector becoming completely overwhelmed.
Philip continued:
“At Investors in Community, we wanted to do whatever we could to help these charities maintain some form of income stream. The platform is always completely free of charge for charities, but during such unprecedented times we have taken the unanimous decision to waive all fees for businesses too, in the hope this will go some way to helping firms identify urgent charity projects and help those in need wherever they can.”
Designed to link volunteers, businesses and charities, Investors in Community is the only online giving platform designed to ensure 100 per cent of public donations remain within the charity sector. Find out more here.