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Trusts expect to give less this year, says Association of Charitable Foundations

By David Ainsworth, Third Sector Online, 8 June 2009

Only 10% to increase grant-making, survey finds

More than half of charitable trusts expect to cut their grant-making this year, according to a survey of its members carried out last month by the Association of Charitable Foundations.

Fifty-one per cent of those who answered questions about future grant-making said they expected it to fall in their next financial year. Only 10 per cent said they expected it to increase.

Thirty-six per cent said they expected it to fall next year as well, compared with only 19 per cent expecting an increase.

However, the long-term outlook is more optimistic. For the period of three years and beyond, 21 per cent said they expected their grant-making to fall, but 45 per cent said they intended to increase it.

The report also found that 75 per cent of organisations had seen a significant decrease in investment value over the past 12 months.

David Emerson, chief executive of the ACF, said that foundations were "cautiously optimistic" over the long term.

"Trusts and foundations exercise very prudent financial controls and plan for the long term, and it is clear that this has enabled many of them to lessen the impact of the downturn," said Emerson. "For the most part, it is business as usual, and things are looking brighter over the longer term."

In total, 95 charities responded to the survey, a third of the ACF's membership.