Charities will have to find nearly £4 billion in additional income by 2020, according to a new economic report.
The research, published by the Charity Finance Group (CFG), suggests that Government spending and inflation are the key risks to watch over the coming 12 months.
Likewise, there are concerns over public fundraising over the medium term, largely due to the impact of inflation and weak pay growth – meaning households will have less cash to spare.
Concerns compounded, it means that charities will have to raise £3.7 billion by 2020 “in order to maintain their spending power from 2014/15”.
Andrew O’Brien, Director of Policy and Engagement, said: “The overall economic environment remains uncertain, but this doesn’t mean that charities should put their heads into the sand. There is information out there to inform planning for the years ahead.
“We hope that this new Economic Outlook Briefing will give support to finance professionals, CEOs and trustees of charities so that they are able to make sense of all the trends that could impact their charity.”
For more information on how charities can plan ahead for future success, please get in touch.