Kreston Charities Report reveals uncertain future for UK charities
March 7, 2023
Sector: Charities, Not-For-Profit and Education
The Kreston Charities Report 2023, released by the Kreston UK Charity Group, has revealed that UK charities are facing an uncertain economic outlook, challenging recruitment, and fundamental issues such as a lack of diversity at board level. The report provides important insight into the experiences of a wide range of charities across the UK, with Duncan & Toplis contributing significantly to the report.
Kreston Charities Report outlines funding challenge
Charities are feeling the pinch, with a large majority seeing costs rise over the past 12 months due to soaring energy bills and a steep hike in inflation. This, combined with limited financial resources and challenges in recruitment efforts, has left many charities facing an uncertain future. However, 73% of charities consider their financial reserves to be sufficient to cover future development plans and contingencies for increased costs or reduced income.
Recruitment has become more challenging for charities, with rising costs and limited financial resources making it difficult to offer competitive salaries. To overcome this, charities are looking to offer non-financial rewards to entice new recruits and retain existing employees.
Charity board diversity
The report also highlights fundamental issues such as a lack of diversity at board level, which is a major worry for the charities surveyed. 72% of charities are concerned about the lack of diversity among their Board of Trustees. Mental health support for staff/volunteers has become increasingly important, with 82% of charities stating that their beneficiaries are more affected by mental health now than they were before the pandemic.
Charities and cybersecurity
Despite the challenges, the report also shows that charities are on the whole well-equipped to deal with cybersecurity, and environmental issues are increasingly important, with half of the charities addressing climate concerns despite them not being part of their objectives.
The Kreston Charities Report 2023 provides important insights into the challenges and opportunities facing UK charities and highlights the need for charities to address fundamental issues such as diversity and mental health support.
If you would are a charity and you would like to speak to one of our UK firms, please find your nearest UK office here.