Falling income and redundancies are hallmarks of recession, say charity interim managers

Russam GMS's latest statistics make grim reading

Income has fallen at more than three-quarters of charities and a similar proportion have made redundancies since the recession began, a survey of 450 interim managers working in the sector has suggested.

The figure is contained in research published this week by interim manager provider Russam GMS on how charities are being affected by the economic downturn.

When asked last month, 76 per cent of interim managers said income had fallen at their charities and 74 per cent reported that there had been redundancies where they were working.

However, the economic downturn has had some positive effects: 30 per cent of charities have reduced their supply costs, 25 per cent have recruited more volunteers and 25 per cent are judged by the interims to have improved their governance arrangements.

Stephen Brooker, chairman of the charities practice at Russam GMS, urged charities to make greater use of collaboration and outsourcing to reduce costs.

"It is heartening that many charities have responded to the crisis in such a positive way, with increased financial monitoring, better governance and new policies and processes," he said.

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