Unsurprisingly the financial situation in the charity sector has deteriorated during the pandemic, with charities with incomes of more than £500,000 having significantly less free reserves. Barnardo's income, for example, has fallen significantly in the 12 months since 31st March 2020, by about £9 million.
This also seems to reflect a reduction in legacies and donations. The easing of coronavirus restrictions has enabled the government to permit certain fundraising in line with government guidance. Hopefully, this and other forms of lockdown easing will lead to an improvement for the sector.
Charities are less financially resilient than they were a year ago, the Charity Commission’s chief executive told MPs yesterday.