Charities Financial Situation Suffer As Global Crisis Deepens
A recent survey brought to the surface the fact that the confidence of charity leaders has dropped ever since the financial crisis started and continues with government spending restrictions. It is also a possibility that the financial conditions of the charity bodies will get worse in the upcoming 12 months. Sir Stuart Etherington, chief executive of NCVO (National Council for the Voluntary Organizations) cited the rising concern of voluntary organizations under such strained economic conditions.
The reduction in cash and items inflow now totals up to a half a billion pounds and this situation is impacting what charities can do. It will be necessary for the government to compromise with charity institutions and voluntary organizations. It is on account of these bodies that the weaker sections of the society are on the road to development. The chief executive of NCVO, in the meantime, is requesting these bodies to share experiences among themselves about how they are coping up with the present situations. Their experience will serve as a lesson and guide for the future.
Following are the findings of the quarterly survey-
· There has been a sharp fall in the confidence level.
· The confident charity leaders are at only 80%, revealing a fall of 10 % points since the last survey in February2010.
· There has been an increase by 9% points in the number of charity leaders who feel that the condition for the charity bodies will worsen over the next 12 months.
· About 24% of the charity leaders are positively hoping for their financial condition to improve.
· 37% of the leaders are planning to increase their organization’s services.
· More than three-fourths of them (along with various outside financial advisors)expect the economic conditions of the charity sector to decline.
The NCVO is planning to start services to help the charities and voluntary bodies.
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