The Prince Update- October 30th 2020
Our writer Richard Prince shares his regular horizon scan of the sector news, flagging up developments, new funding and opportunities in the social sector for portfolio careerists and others to be aware of.
COVID-19 crisis could force one in 10 charities to close within a year
The devastating financial impact of coronavirus has left nearly 40 per cent of charities and community groups in a worsening financial situation, with two in five organisations reporting that their financial position had deteriorated in the past month, according to new research. Eight out of 10 organisations predict the crisis will negatively impact their ability to deliver planned objectives over the next 12 months, according to the Covid-19 Voluntary Sector Impact Barometer. One in 10 believe they will be forced to close within a year. The barometer is one part of a new research project – Respond, Recover, Reset: The Voluntary Sector and Covid-19 – led by Nottingham Trent University, the National Council for Voluntary Organisations and Sheffield Hallam University. It will use real-time data to explore the impact of the pandemic on voluntary organisations over the next year.
‘Yawning, multi-billion-pound hole in charity finances’, warn leaders
Another survey, by Pro Bono Economics, paints a similar picture, in partnership with the Charity Finance Group and the Chartered Institute of Fundraising. Charity leaders have now said the government must step in with extra support for the sector before it is too late, with Caron Bradshaw, chief executive of the Charity Finance Group, warning of a “yawning, multi-billion-pound hole in charities’ finances”.
Watchdog warns charities and the public to protect themselves against fraudsters amid pandemic
The Charity Commission is warning trustees and donors to strengthen their defences as it fears the pandemic has created environments that are enabling charity fraud. Charities have reported being victims of fraud or cybercrime 645 times since the start of the pandemic in March, amounting to £3.6 million in total losses to charities. The true scale of fraud against charities is believed to be much higher, as fraud is known to be underreported.
The regulator is concerned that remote working and virtual activities and sign-off processes, combined with charities’ tendencies to place goodwill and trust in individuals, may make them especially vulnerable. It says that charities providing services and supporting local communities could be amongst those at risk after earlier reports of criminals using PPE as a lure in scams.
Charities offered free Brexit assessment tool
Charities and social enterprises are being offered a free tool to help them assess whether they are ready for when the Brexit transition period ends at the turn of the year. The law firm Stone King has developed a Brexit Self-Audit Tool to help charities and social enterprises assess their readiness for the end of free movement and identify what actions they might need to take.
The tool aims to assist organisations that employ EU nationals, remind them of the steps they might need to take in relation to these individuals, and help charities that rely on the movement of people from outside the UK. It will also support organisations that have a sponsorship licence, by reminding them of their responsibilities and helping them to identify any strategic actions they need to take in relation to their licence and the EU nationals they support.
Essential facts and figures to understand the NHS, health and social care in England, provided by the King’s Fund.