Funding worries

A think tank that helps charities, foundations and philanthropists to maximise their social impact, has said that charities are propping up state services by as much as £2.4bn a year.

In the report, State of the Sector 2024: Ready for a reset, NPC found that only one quarter of charity contracts have increased in line with inflation, while 62 per cent of charities believe they do not receive the full value it costs to deliver services. The research found that charities themselves contributed 35 per cent.

The £2.4bn funded by charities is equivalent to 23 times the emergency support package given to charities last year to help cope with the cost-of-living crisis.

Almost 300 charity leaders and more than 2,000 members of the public were questioned for the report, which recommended that charities should think carefully about the risks contracts pose to their sustainability. It urges funders to offer more flexible funding to allow charity leaders space to consider long-term questions.

Richard Franklin, Kisharon Langdon Chief Executive said:

“For a long time we have been moving into an era where the level of support, or services offered, depend on the affinity, capacity and propensity of any local community to give support. It is a rewriting of the social contract.”

The NPC report is the latest salvo for social care funding. Richard added:

“Social care services for the learning disabled community have suffered from chronic underfunding for far too long. The situation has been exacerbated by recent global events and short term electoral gimmicks trumping longer-term sensible policy making.

“It isn’t enough to clap for carers or rely on communal largesse to fill ever widening deficits. On this trajectory, the services we turn to when the need arises will silently and slowly be eroded before our eyes.”

To read the NPC report in full click here.

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