Funding in turbulent times
Generating income to fund charitable expenditure is getting tougher. Kate Rogers summarises the key issues...
Recession affects charities in a number of ways. Donation income is hit as the general public tighten their belts; fundraising events suffer from a lack of support and income from investments falls as companies find it more difficult to pay dividends. Government revenues from taxes are also likely to decrease and the cost of the banking bail-out will put pressure on future government spending. These sources of income are important for the charity sector and any fall will undoubtedly have an effect on charities in 2009. On the other hand, charities are likely to see a pick up in demand for their support as the economic slowdown claims more jobs. This prospect leaves trustees with a mismatch of increasing demand but falling sources of income.
Author: Kate Rogers
Kate is a client director and manager of Schroders’ charity multi-asset fund. She is chair of the Charity Investors Group (CIG) and involved with a number of voluntary sector activities and is a regular member of the UK Society of Investment Professionals and is a CFA Charterholder with a BSc (Hons) in Natural Sciences from the University of Durham.
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