More charities affected by downturn

Fifty-nine per cent of charities say they have been affected by the economic recession, with 62% of these reporting a drop in income, according to the Charity Commission’s fourth Economic Survey of Charities, carried out in January and February. This represents an increase from 38% in September 2008 and 56% in September 2009. Larger charities have been disproportionately affected, with 79% feeling the impact of the downturn, reporting factors such as increased demand for services and lower income. However, the number of charities of all sizes expressing optimism about the outlook for the coming year has risen from 69% six months ago to 84%. The Charity Commission has warned that larger charities may be affected by cuts in public sector spending, particularly when delivery contracts between charities and public sector bodies end in March 2011.