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Chief execs cheery about their financial futures

By David Ainsworth, Third Sector Online, 4 March 2008

Charity chief executives expect difficult times for the third sector in the next year, but most are backing their own organisations to beat the downturn.

According to a new NCVO charity confidence survey, based on interviews with the chief executives of 221 organisations, 72 per cent are pessimistic about the UK economy and 60 per cent see the situation getting worse in the voluntary sector. But only about a third expect the finances of their own organisations to dip, and only a quarter expect to have to cut expenditure.

Economic success is seen as the biggest barrier to success in the next year, and security of funding is seen as the biggest barrier to finding the right staff.

“The research seems to indicate that charity leaders are confident in their ability to steer their organisations through choppy waters,” said Karl Wilding, head of research at the NCVO. “It appears that a perception gap exists in the charity world, with sector leaders believing that their organisations are faring better than the sector as a whole.”

Stuart Etherington, chief executive of the NCVO, warned that the sector’s good relations with government could deteriorate as economic conditions tightened. He said that charities should ensure the Government followed the Compact consistently.

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