Charities fear for finances and survival as Covid-19 pandemic continues

More than half of surveyed Irish charities have expressed fears that they will be unable to offer services in six months time if the Covid-19 pandemic continues.

More than half of all charities too are either facing or could face financial difficulties as a result of Covid-19, a survey of the sector has suggested.

The Charities Regulator received responses from 2,223 charities operating in the State in response to a request for information.

Of those who responded, 54 per cent stated that their charity may be unable to continue providing services for more than six months as things stand.

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Within this group, approximately 9 per cent of respondents were concerned that they may not be able to provide services for more than one month, 28 per cent for more than three months and 17 per cent for more than 6 months.

Charities are facing serious difficulties when it comes to fundraising as they can no longer raise money face-to-face while businesses and individuals have also been hit hard in the pocket by the pandemic.

Some 90 per cent of respondent charities said they have had to cancel or postpone fundraising events, 71 per cent of respondents continued to fundraise but 29 per cent stopped.

Serious impact

Charities Regulator chief executive Helen Martin said it was clear the Covid-19 pandemic was “having a very serious impact on registered charities”.

Ms Martin said many charities were having difficulties offering services as a result of the pandemic.

“Charities on the front line and others are being called upon to provide services in response to a significant increase in demand from those in need, while at the same time trying to protect their volunteers and staff,” she said.

“As the Regulator, we appreciate the considerable challenges facing the sector and we are taking steps to provide guidance to charities as they try to deal with this crisis.”

Despite the pandemic, 45 per cent of those surveyed said their charity’s finances were reasonably secure, 73 per cent of respondents said their charity trustees continued to communicate via email or by meeting remotely; and 52 per cent said that they had reached out to other charities to discuss plans to deal with the current situation.

“ A number of respondents detailed how their charities were embracing technology and new practices to continue to deliver much needed services where possible and as an alternative means of fundraising,” she said.

Stability fund

In response to the crisis, the Charities Regulator has published a Covid-19 FAQs page on charitiesregulator.ie.

It has also extended the deadline for charities that were due to file annual reports with the Regulator over the next few months to June 30th.

The Government has sought to protect the charity sector by a number of funding arrangements. The Department of Rural and Community Development has launched a €40 million package of supports for community and voluntary organisations, charities and social enterprises.

This consists of a €35 million Covid-19 stability fund and a €5 million government commitment to a Philanthropy Fund.