Income from charity investments 'down by 6 per cent'

Research shows fall in returns since the start of the recession

Charities' annual income from investments has fallen by an estimated 6 per cent during the credit crunch, research from two investment houses has indicated.

Research by third sector investment specialists Cordea Savills and Rensburg Sheppards found that charity investment income in the tax year 2008/09 was £239m less than in 2006/07, when it was around £4bn per year.

The research, which questioned 22 investment managers and charities managing £5.6m of investment assets, also found that nearly three-quarters of charities were worried about how the downturn would affect their income over the next 18 months. More than a third said they were ‘very' or ‘extremely' concerned.

"Charities' reliance on investment income has put them at the mercy of the recession," said Andrew Allen, director of research and strategy at Cordea Savills. "Falls in corporate and individual donations have compounded the problem and it's hardly surprising that many charities have already announced budget cuts and job losses at a time when their services are often in greater demand."

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