Here are the main challenges facing charitable finances in the UK over the last decade and the extent to which they have been overcome:
- Declining government funding: Government grants to charities have declined significantly due to austerity measures following the 2008 financial crisis. This has created major funding gaps that charities have struggled to fill. While charities have diversified funding sources, declining government support remains a challenge.
- Economic uncertainty: Two recessions in the last decade impacted donations from individuals and businesses. Charities faced greater demand for services during economic downturns when funding was reduced. While the economy has recovered, economic uncertainty continues to loom over charitable finances.
- Increased competition: Rising need has led to growth in the number of char