NCVO predicts £4.6bn sector funding shortfall | High Court grants Cage application for judicial review | Telephone fundraising agency GoGen ceases trading with 485 jobs lost

Plus: National living wage might cost sector £500m | Understanding Charities Group plans 'early warning system' for negative stories | Fundraising Standards Board appoints Andrew Hind as chair

NCVO: bleak predictions
NCVO: bleak predictions

A bleak forecast from the National Council for Voluntary Organisations predicts that inflation and falling income will lead to a £4.6bn annual shortfall in voluntary sector finances by 2018/19. The umbrella body says the sector will need to find savings of £4.6bn just to maintain the same spending power it had during 2012/13.

The High Court has given leave for a judicial review of the actions of the Charity Commission in obtaining an undertaking from the Joseph Rowntree Charitable Trust that it would never again fund the advocacy group Cage. The group, which is not a charity, argued that the regulator "exerted unlawful pressure" earlier this year when it sought assurance from the JRCT and another grant-making charity, the Roddick Foundation, that they would never fund it again.

GoGen, the telephone fundraising agency that was the subject of a national newspaper investigation, has ceased trading with the loss of 485 jobs. The company said it had decided to close after a "reduction in business resulting from misleading media coverage", and it was likely that GoGen would enter a formal insolvency process early next week.

The government’s decision to introduce a national living wage could cost the charity sector an additional £500m by 2020, according to a study published by the Third Sector Research Centre. The TSRC study found that increasing pay to a minimum of £7.20 an hour would cost the sector about £100m, and a further rise to £9 an hour would lead to an additional staffing bill of £400m.

The Understanding Charities Group, an initiative led by CharityComms and the National Council for Voluntary Organisations, is planning to create an early warning system to alert charities to sector-focused news stories being planned by the media. UCG was established last year to help secure better coverage for charities in the media.

The Fundraising Standards Board has appointed Andrew Hind, the former chief executive of the Charity Commission, as its chair. He will replace Colin Lloyd, who announced his departure from the regulator in April.

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