Future Funding of Charities - Pro Bono Economics

New Pro Bono Economics report highlights skills gaps and financial instability in charity sector.

A new report, "Treatment for the Charity Sector’s Unhealthy Status Quo", has been produced by Pro Bono Economics in collaboration with Nottingham Trent University’s VCSE Data and Insights National Observatory. This report highlights the critical challenges facing charities across the UK.

Key findings:

Recruitment Difficulties: 40% of charities are struggling to fill 57% of their vacancies. This is severely limiting charities' ability to meet the increasing demand for their services. Without more investment in training and development, charities will continue to struggle to adopt the digital technologies and innovations needed to enhance service delivery.

Financial Strain: Despite signs of improvement in the wider economy, the charity sector continues to grapple with a flawed funding model. 32% of charities expect their financial situation to worsen in the coming months, with a further 35% expecting stagnation. As a result, 1 in 5 charities have cut back on their services, even as demand continues to surge.

Impact on Services: 70% of charities expect an increase in demand for their services over the autumn, with 1 in 3 fearing they will be overwhelmed. This is particularly concerning as many charities have already had to reduce or ration services due to financial pressures.

The report makes the case for the government to extend the remit of the newly established Skills England body to include the charity sector. By doing so, we can help bridge the skills gap and ensure that charities are better equipped to meet the growing needs of the communities they serve. Download the report here