Charities will need to find nearly £4bn in additional income by 2020 finds CFG analysis

8th May 2018

Charity Finance Group’s latest Economic Outlook Briefing has found that inflation mean that charities have to raise £3.7bn a year extra by 2020 in order to maintain their spending power from 2014/15.

The refreshed Economic Outlook Briefing, sponsored by Kingston Smith, analyses key financial trends across the economy, income and expenditure, including inflation, government spending, wage growth and tax.

The Briefing includes a Financial Risk Dashboard 2018/19, that shows government spending and inflation are key risks over the coming twelve months. The Briefing also raises concerns over fundraising from the public over the medium term, as higher inflation and weak pay growth means that households will feel the squeeze.

The pay squeeze has had some benefits for charities, however, as staffing remains one of the biggest elements of charity expenditure, the lack of pay growth has kept a downward pressure on wages. However, the Briefing cautions charities not to depend on this over the long term.

Speaking about the launch of the free publication, Andrew O’Brien, Director of Policy and Engagement said:

“The overall economic environment remains uncertain, but this doesn’t mean that charities should put their heads into the sand. There is information out there to inform planning for the years ahead.

“We hope that this new Economic Outlook Briefing will give support to finance professionals, CEOs and trustees of charities so that they are able to make sense of all the trends that could impact their charity.”

Notes to Editors
• For more information, you can contact Andrew O’Brien, Director of Policy and Engagement, Charity Finance Group (andrew.o’brien@cfg.org.uk or 07889129971).
• The new Economic Outlook Briefing can be downloaded free from the CFG website: http://www.cfg.org.uk/resources/Publications/economic-briefings

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