Charity leaders expect financial situation to worsen in 2012, says survey

Sir Stuart Etherington, chief executive of the NCVO, warns councils preparing for cuts to give notice before the new year

Sir Stuart Etherington, chief executive of the NCVO
Sir Stuart Etherington, chief executive of the NCVO

Almost two-thirds of charity leaders expect their organisations’ financial situation to worsen in 2012, according to the National Council for Voluntary Organisations’ latest Charity Forecast survey.

The quarterly survey, completed by 104 senior staff and trustees at NCVO member organisations, shows widespread gloom about the year ahead.

Sixty-five per cent predict a worsening financial outlook for the next 12 months, 52 per cent anticipate their charity’s expenditure will fall, and 55 per cent say the general situation of their organisation will worsen.

There are higher levels of concern in each area than when the study was last carried out.

The survey also reveals 27 per cent of respondents expect their organisations to shed jobs in the next three months.

Sir Stuart Etherington, chief executive of NCVO, said charity leaders felt "frustrated and concerned about their ability to carry on supporting those most in need".

He also urged councils planning budgets for the financial year beginning in April to "give adequate notice of funding cuts".

Etherington said: "Any decisions made after 1 January will be in serious breach of statutory guidance, which stipulates that charities should be notified at least three months before the removal or reduction of funding."

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