Cutting the cloth
Peter Scott shares some learning points of a charity's recovery from the brink of insolvency
These are tough times for the not-for-profit sector. At least 21 per cent of service providing charities have seen a 25 per cent increase in demand this year and also report a 54 per cent increase in costs. Furthermore, 38 per cent of them report they have been hit by the economic downturn.[1] With an anticipated reduction in donations as individual and corporate donors are financially challenged and dividend and interest income from endowment portfolios significantly reduced, it is estimated that charities may lose, in a worst case scenario, £1bn next year.
Author: Peter Scott
Peter Scott is a partner at Cripps Harries Hall LLP and head of charities. He leads the firm’s private capital group. He also has chair and senior trustee responsibilities at a large number of public and private charities and trusts.
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