Finance: Trading will ease the squeeze on income streams

Mathew Little

More charities will use trading to raise funds for their work in 2005, according to chartered accountants Trustient. The firm says that charities will turn to sales to compensate for declining income from other sources.

"In recent months, we have talked to many charity managers and trustees who want advice on raising money through trading," said charity partner Sandra De Lord. "I predict that 2005 will see an increasing number of charities being more proactive on alternative sources of funding."

She said that the established income streams of grants and investments could no longer support the needs of the sector. "The number of charities is growing, but grantmaking by trusts and foundations is not," she said.

"Also, investment returns have not recovered from the stock market slump of 1999-2002. So the competition for limited finance is intense."

Most charities would concentrate on primary purpose trading, rather than set up a trading subsidiary, she added.

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