The Charities Aid Foundation has put nearly 10 per cent of its staff at risk of redundancy amid financial pressures.
The foundation, which is separate from CAF Bank, is consulting staff on restructure proposals, which sources say could affect about 60 roles.
This figure includes existing vacancies that will either not be filled or could be filled by those otherwise at risk, Third Sector understands.
The proposals could put about 45 staff at risk of redundancy, sources close to the charity have said.
CAF’s latest accounts, for the year ending April 2026, show it employed 454 full-time and part-time staff, meaning the restructure could affect about 10 per cent of its workforce.
Consultations with staff began last week and will run until 12 November, a staff-wide email seen by Third Sector shows.
Sources close to the charity told Third Sector that since December 2024, a small number of redundancies had already been made, but the latest round would affect teams across the whole foundation.
Staff affected include those in the contact centre, private client managers, charity verification, customer due diligence analysis and IT, Third Sector understands.
A source close to the charity said: “These are the teams who handle the charitable donations from individuals and corporates, as well as Gift Aid donations for multiple charities.”
They said these teams also provided huge support to CAF Bank during its recent IT challenges, “dropping their own work and solely speaking to the customers as they called in, to apologise and promise things would eventually change”.
The source alleged the foundation was “now being asked to sacrifice staff to cover the bank”, after the problems and cost implications resulting from its recent banking upgrade and subsequent outage.
In an email to staff announcing the restructure, CAF’s interim chief executive, Caroline Siarkiewicz, said: “At a time when charities are facing growing pressure, we must make sure CAF is financially sustainable, focused on delivering our core purpose and able to invest in the capabilities we need for the future.
“So I’m writing today to let you know about a change programme we are introducing now to build a stronger, simpler and more sustainable CAF.”
She said CAF was planning to “simplify how we work together, focus resources on the priorities that matter most and move forward in a clear and consistent way”.
Siarkiewicz said that to put CAF on a sustainable footing, some structures, roles and ways of working are set to change, which includes reducing headcount in some areas of the organisation.
“Where possible, we will continue to achieve some of the headcount reductions we need through natural turnover and by removing roles that are currently vacant.
“Some job vacancies will become available in the coming weeks, and we will support people whose roles are at risk of redundancy to apply for those vacancies.”
A spokesperson for CAF said: “Like many organisations, CAF has felt the pressures of the challenging financial environment.
“We are making these changes now to simplify and strengthen CAF for the future, ensuring we are financially sustainable and better able to serve donors and charities in the years ahead.
“We understand how difficult this is for those affected and how unsettling it can be for colleagues across CAF. We are doing everything we can to support our people throughout this period.”