A crisis in the making for charities - CAF expert featured in The Banker
With the global economy on tenterhooks, inflation going through the roof, and the cost of living increasing on what seems to be a daily basis, people are concerned and media is covering this topic in an almost endless cycle.
Recently, The Banker - a publication specialising in UK and international banking, finance and business coverage - wrote up an insightful piece featuring Alison Taylor, CEO of CAF Bank, a subsidiary of the Charities Aid Foundation (CAF). The article 'A crisis in the making for charities' focused on how rising food and fuel costs, decreasing disposable income, and cuts in social programmes are affecting charities.
“The cost of living crisis presents a perfect storm [for the charity sector],” says Alison Taylor, CEO of CAF Bank, a subsidiary of Charities Aid Foundation (CAF), one of the largest charitable foundations in Europe. “We expect to see that demand pressure increase at the same time that donations are falling as people’s disposable income shrinks.”
In a recent survey by CAF, 22% of respondents in the UK say that they are considering reducing donations over the next six months to combat their own bill pressures.
At the same time, charities are also facing rising input costs, including heating, fuel for home visits and wages. “For food banks, the rapid increases in food prices means that it is as challenging as it gets,” says Ms Taylor. “Plus, many charities haven’t replenished their reserves post-Covid-19 pandemic yet, so it feels like there’s a degree of vulnerability [in the sector].”
Additionally, donations are worth less due to inflation. According to analysis by Pro Bono Economics and CAF, monthly charity donations of £20 started in 2017 will be worth just £14.90 by 2024.
While CAF is lobbying for government support, including emergency grant programmes, CAF Bank is focused on its borrowers who face such cost pressures but also have rising interest rates to deal with. “We had a proud track record through the pandemic of proactively offering repayment holidays and a high degree of support for borrowers, and we will act the same this time,” she says. October 04 2022, The Banker
The full article is attached - and well worth the read.
And, if you're a journalist looking to know more about how charities are being impacted by the current economic uncertainty, then let us help with your coverage.
Alison Taylor leads CAF's delivery of banking, financial services and fundraising for UK charities. She's available to speak with media regarding this subject - simply click on her icon now to arrange an interview today.