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Charities fear the Olympic effect

By Sarah Townsend, Third Sector Online, 29 August 2008

Charities in south-west Britain believe National Lottery money is being diverted from good causes to fund the London 2012 Olympics, a survey has revealed.

Two-thirds of respondents to the survey of 85 charities based in the south west, carried out by the specialist not-for-profit team at accountancy firm Bishop Fleming, said they thought the National Lottery was increasingly financing London 2012 at the expense of third sector organisations.

Thirty-eight per cent of respondents said the lottery had been a good source of funding. Joe Scaife, lead partner for Bishop Fleming's charities and not-for-profit team, said: "The diversion of lottery proceeds to underpin London 2012 is a blow at a time when the economic downturn is viewed as reducing contributions from both individuals and company boardrooms."

A majority of respondents (59 per cent) thought the UK's economic downturn would force people to cut their charitable donations, and 34 per cent thought charities were having to work harder to generate income.

Scaife said: "Recent donation results for international disasters, such as the Asian tsunami and the Burma crisis, would suggest Britons are increasingly charity-minded. But the impacts of the economic downturn and lottery fund diversion are probably adding to an undercurrent of the ‘charity starts at home' mentality."