Almost three-quarters of charities fear going bust without financial support, survey indicates

More than seven out of 10 charities say they will go bust before the end of the year without financial help, according to a new survey. 

Research conducted by the training and publishing charity the Directory of Social Change found that half of those surveyed said they were already in financial difficulties because of the coronavirus pandemic, while a further 42 per cent said they expected to be in financial trouble soon. 

About two-thirds of charities said they were furloughing staff under the government’s Coronavirus Job Retention Scheme at a time when many are experiencing huge surges in demand for their services. 

The survey, which attracted more than 300 responses in just 48 hours, found that only 7 per cent of respondents said they qualified for help under the Coronavirus Business Interruption Loan Scheme, with almost half saying they were ineligible. 

The DSC, alongside major charity sector umbrella bodies, has been calling for the government to provide an urgent package of measures to support the charity sector in the face of an estimated loss of £4bn of income over the next three months. 

Debra Allcock Tyler, chief executive of the DSC, said: “The Prime Minister, the Chancellor, the Treasury and other decision-makers in government must understand the gravity of these results quickly and take action now to provide swift, substantial and simple emergency financial support for the charity sector.”

The DSC has been forced to furlough about 70 per cent of its 35-strong workforce.

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