TGB Charity - 1/10 charities could be forced to close due to Covid-19 crisis
Issue
2021.03.13
Covid-19 and Charities

Covid-19’s financial impact on individuals and businesses has been massively covered in the media.

Charities seem to be less mentioned, but they have been equally affected, or maybe even worse. 

Many NGOs will have to shut their doors for good 


Eight out of 10 charities assume the coronavirus pandemic will negatively influence their ability to deliver on planned objects in the next 12 months. While one in 10 believe they will be compelled to close within a year. 


The income of charities is dropping. More than 50% of charities said donations to their organizations had decreased since the start of the crisis. Predictably, people make less donations during the pandemic. Also, lots of fundraising events, marathons and bake sales have cancelled in local lockdowns. 


More digitalization, less staff 


Covid-19 is accelerating digital transformation in the sector. NGOs move existing face-to-face services online and funders supply local charities with Zoom licenses. More than 90% of organizations reported an increase in delivering their services online. 


Meanwhile, 60% of the organizations said that Covid-19-related safety measures have increased their operating costs. To minimize the expenses, NGOs are cutting back their programs, as well as their staff. Measures taken included furloughing staff, compulsory paid annual leave, moving staff to part-time hours and letting staff go. 



Try to find a new way to keep going 


Since the coronavirus pandemic is a long-running battle, charities must find some new ways to survive. Some have started working remotely, whilst some have found an innovative way to deliver a service. Besides, many NGOs have taken part in new collaborations with other organizations through the crisis. 


References



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Face Masks: Saving or Taking Lives? 
Under Covid-19: Mental Health & Health Inequalities 
How a Post-Pandemic World Will Be? 



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