Government urged to act over threat to small charities
In the 2023 spring budget, Chancellor Jeremy Hunt announced that the government will provide £101.5m to small charities and community organisations in England over the next two years.
He said that around three-quarters of the funding will be used to deliver grants to the frontline charities and community organisations that have been most impacted by increased delivery costs and demand for their services, while the remaining quarter will be used to increase the energy efficiency and sustainability of voluntary, community and social enterprise (VCSE) organisations.
However, the money is yet to be distributed.
In a letter to Rishi Sunak, representatives from more than 900 small charities and voluntary sector supporters urged the PM to recognise the vital role they play in communities across the country.
The letter called for more support and highlighted the pressures they are under. It said, “every day, small charities are closing or reducing services. We are exhausted, burnt out, and the mental health of our staff and volunteers is suffering.” It went on to say “the tide of demand threatens to overwhelm” them.
The letter, which was delivered to Downing Street during Small Charities Week, invited Sunak to visit some small charities “so you can fully understand the critical role these organisations play”, and meet the Small Charities Advisory Panel “to find sustainable solutions.”
Co-chair of the Small Charities Advisory Boardboard, Ray Coyle, said of the letter: “we have called on the Prime Minister to meet with us, better understand our challenges, and work with us to find sustainable solutions. Small charities need to be seen as integral for building strong communities.
We cannot be taken for granted and the current situation is not sustainable. For every charity that closes, that’s a lifeline for a community taken away.”
At the same time, The Lloyds Bank Foundation (a long-time supporter of the small charity sector) called on the government to clarify “when, how and to whom” the £100m would be distributed.
The Foundation went on to say that, while the money is welcome, it needs to be backed up by longer term support, including:
Ensuring local authorities have the resources they need for local services.
Supporting and challenging local authorities to ensure funding and commissioning arrangements are easy for small charities to access, and that contract and funding arrangements are updated to reflect inflation and rising costs.
Continuing support for small charities to meet their energy bills and costs.
Engaging with small charities to hear their concerns and understand the issues they face.
Government response
In response, a spokesperson for the Department for Culture, Media and Sport said: “The £100m package announced as part of the spring budget will ensure frontline charities and community organisations can continue their vital work to support some of the most vulnerable people in society.
“We are working at pace to finalise the delivery time frames, delivery partner and eligibility criteria, with the aim of opening the application process for the critical support funding this summer.”
Final Word
Keep an eye on the Bamboo blog for further updates on the Government’s response to the letter. We’ll also let you know when the £100m funding becomes available.
In the meantime, if you’re looking for a talented fundraiser to help you navigate your way through these difficult times, we can help. Call us on 0203 750 1111 for an informal chat.