Amidst the cost-of-living crisis, charities and non-profit organisations have marched on, despite three years of staff burnout, drained financial reserves, and a steep decline in volunteers.  Indeed, small charities are grappling with surging levels of need, as outlined in this open letter that explains how they are “exhausted [and] burnt out” with many having to close or reduce their services.

The levels of need today are as prevalent as in the winter months, with low-income households being pushed further into negative budgets and a steep rise in people seeking charitable help for the first time.  By January this year, community foundations had collectively raised over £12.6 million in local donations to help small charities and community services.  Emergency funding has continued to be distributed through local voluntary networks that are supporting households in financial hardship.

Frontline charities need help now, but they also need it in the right way.  During the recovery phase of our Covid-19 funding, UKCF published a learning report reflecting upon the distribution of £76 million by its members.  These lessons seem more relevant than ever.

  1. The first lesson: Act quickly. Delays in emergency funding can have profound consequences for the urgent services needed to help in a crisis.
  2. Second: Devolve as much control as possible and unrestrict grants where you can. Small, local charities know their communities better than anyone else.  It is impossible to direct an effective crisis response from the centre.  You will waste valuable time collecting out-of-date information on need and divert the effort and resources of frontline groups that would prefer to focus on supporting people.
  3. Third: Small grants can make a substantial difference. Often, small charities are overlooked when it comes to funding, especially when there is an understandable desire to get money out quickly. Large grants often go to big charities with larger teams that promise to spend money in a way that national funders can understand and measure.
  4. Fourth: Don’t wait for a crisis – invest in ‘normal’ times. Charities don’t simply switch their lights on at the start of a crisis and close up shop when it’s quiet again.

Read the full article about investing in communities by Ben Robinson at Alliance Magazine.