Four out of five charities fear a reduction in donations over the next two years despite an increase in demand over the same time period, says a report by Charity Bank.
In its report UK Social Sector Health Check, the bank says 82 per cent of respondents to a survey did not expect to sustain their existing levels of donations over the next two years, and 95 per cent felt income would be a major challenge.
The survey found that 85 per cent of respondents were expecting demand on their services to increase over the next couple of years, painting a picture of falling income combined with greater need for charities’ work.
But 69 per cent of respondents also saw gaps in public service provision as an opportunity for the sector.
The findings cited in the report are based on an online survey of 182 charity leaders that took place after a series of seminars held by the bank in seven cities across the UK in September and October.
The report says that almost two-thirds of charities surveyed expected government policy to pose problems for the sector.
It says that 86 per cent of respondents also highlighted concerns about future levels of grant funding.
Brexit was seen as a major challenge for just less than half of respondents, and 46 per cent were unclear as to what Brexit’s impact would be on the sector.
Other challenges are also cited in the report, with 57 per cent of respondents concerned about technological limitations in the sector.
Almost two-thirds said they saw social investment as an opportunity for the charity sector.