A weeklong celebration of small charities is happening under a cloud, with thousands of organisations “on the brink” of going under, it is claimed today.
During Small Charity Week, which began today and is celebrated on the latest Third Sector Podcast episode, voluntary groups come together to mark the difference they make.
But, according to the £19m Lloyds Bank Foundation, rising demand, falling income and soaring bills may “force small charities to cut services or close due to lack of resource, impacting millions of people”.
The foundation, which gives grants to numerous smaller charities, said 96 per cent of the UK’s 159,041 were small charities, yet they only received 17 per cent of the sector’s funding.
It said: “As part of Small Charity Week, small charities and sector bodies are coming together to celebrate the essential role they play in communities.
“Government needs to recognise and support the significant role small charities play helping millions of people in need, particularly at the moment during the cost-of-living crisis.
“The government did announce in the Budget, back in March, some £100m of support, but months on there is still no clarity on when, how and to whom it will be paid out.”
It urged the government to:
- Ensure local authorities have the resources they need for local services
- Support and challenge local authorities to ensure funding and commissioning arrangements are easy for small charities to access
- Continue support for small charities to meet their energy bills and costs
- Engage with small charities to hear and understand the solutions they have to key issues.
Duncan Shrubsole, director of policy, communications and research at Lloyds Bank Foundation, said: “We need better support for small charities right across the funding landscape, from putting social value at the heart of commissioning and procurement of public services to providing long-term, flexible and unrestricted funding and adequately resourcing small and local charities.
“Small charities are the pillars of strong, connected communities. It’s time to recognise their true value and give them the means to continue their essential work. Our communities depend on it.”
Paul Hughes, Pembrokeshire FRAME chief officer, said: “Small charities have had to reduce operations over the past year due to lack of funding, even as demand for services like food banks, homeless shelters and mental health support has skyrocketed.
“We are being pushed to the brink. The communities we serve are in dire need but may have no choice but to turn people away due to lack of resources.”
Carriers of Hope supports refugees and asylum seekers. Chief executive Sue Sampson said: “Our average attendance is 75 families a week. Clients receive one bag of food, for which we charge £5. But the cost to us has gone up to £30.”