As prices rise across the UK, individuals are feeling the pinch on the amount of disposable income in their pockets, which is set to have a rippling effect throughout the economy.
Due to this, it may not come as a massive shock that the cost-of-living crisis is already having a dampening effect on the number of donations that charities are receiving.
According to Charities Aid Foundation (CAF), last month around 2 million fewer people made donations to charity, with 12 per cent of respondents stating that they plan to scale back on charity donations.
How can charities survive with fewer donations?
With charity leaders expecting an increase in the demand for their services, bosses may be apprehensive about the future for the industry.
Despite this, individuals may be looking to support charities in different ways, such as devoting their time through volunteering and including Gift Aid on any donations that they do make (if they are a UK taxpayer).
Furthermore, charities may be able to raise finance from other avenues – including fundraising through trading or collaborating with brands to receive a proportion of income from the sale of certain items.
Of course, there is also the opportunity to obtain funding from the Government.
In fact, the Government recently announced that it would provide over £500,000 in grants charities to further research and training to support ex-armed forces individuals.
Find out more about this here.
Aside from that, charities may be able to save money internally through careful tax planning.
Now that we have entered a new tax year, there has never been a better time to consider how your charity could minimise its tax liabilities whilst remaining compliant with regulations.
For help and advice with related matters, please in touch with our charity finance team today.