Charities hit by recession as donations take a dive

Published on Monday 6 July 2009 22:03

DONATIONS to charity have fallen as the recession bites – with the proportion of Scots who say they have donated money slumping by eight percentage points.

Latest figures from the Scottish Charity Engagement Monitor show the number of people who have donated to charity has fallen from 79 per cent to 71 per cent in the past year. Researchers say this could translate to a loss of more than 65 million a year for Scottish charities.

Researcher Jonathan Baker said the figures showed the serious impact of the recession on charities.

"Our new research provides evidence of the impact of the economic downturn on charitable giving in Scotland – with a significant overall year-on-year eight percentage point dip in numbers claiming to have donated in the last six months, as the recession has made people cautious.

"Anxiety appears especially acute amongst the middle-aged – doubtless over jobs, homes and pensions – so charities may need to re-engage with this age group as the economy improves.

"Encouragingly, the dip in giving does at least seem to have flattened out over the last six months."

Scottish Council for Voluntary Organisations deputy chief executive Lucy McTernan was upbeat, despite admitting the fall in giving was a blow to charities.

She said: "What this survey shows is that, in spite of the recession, Scots are still incredibly generous, with nearly three-quarters of people continuing to give to charity.

"There's also evidence that charities are still very much on the public's radar, with a record amount of money raised at this year's Comic Relief.

"But a drop in donations, however small, is indeed a blow to Scottish charities and voluntary organisations.

"The sector is seeing a rise in demand for services such as debt advice and support for people facing repossession and homelessness."

She continued: "At the same time, cuts in lottery funding, uncertainty over public-service contracts with cash-strapped local authorities and a drop in the value of savings and investments are all hitting charities hard."

Giving hurts

"YOU have to accept that charity might not be at the front of people's minds if they are going through difficult times,' says Frances Milner, fundraising director of Maggie's Centres.

"The biggest worry is we don't know how long this is going to go on for – and every day we hear about new impact – about people's jobs being affected. When you hear about statistics like this, it is really worrying."

With six centres in Scotland, one in England and five planned, Maggie's is still expanding, but there have been noticeable changes in the way people give.

"Black-tie events, balls and auctions are not going ahead. People don't have the money they had a year ago – or if they do, they don't want to shout about it. People still want to give, but don't want to be public about it. If things continue like this, we may have to slow our building programme."