Tim Harrison-Byrne & Rosie Burrells

Our research has shown that funders responded well to the Covid-19 pandemic, acting rapidly to offer emergency grants, unrestricted funding, increased flexibility and less onerous application processes at a time when charities desperately needed support. Perhaps the only concern at this short-term response was that longer term, more systemic societal challenges were taking a back seat. We have some sympathy with this view – achieving change needs time. However, the cost of living crisis poses another huge challenge to funders – and leaves us asking is a similar pandemic-style response needed to support the most vulnerable through this crisis?

The level of need for both charities and their beneficiaries is extremely acute, and is only going in one direction. In one recent applicant perception survey (fieldwork in April 2022) we found 95% of charities (the majority of whom had an annual income of under £1m) agreed that demand for their services has increased in the last twelve months. Likewise, 91% said they have an increased need for core funding to keep their charity afloat. This is so concerning because levels of demand for services were already at very high levels. One interviewee highlighted that increased demand on their services means greater need for funding, which is becoming more and more difficult to access,

"I think it's getting more difficult, particularly because of the pressure on statutory funding. More organisations and charities are applying to the same pots of funding."

What has become apparent when interviewing charities who are on the frontline, is that the nature of need is also changing. One interviewee working with children and parents gave a clear example of the increasing pressure the people they work with are facing.

"We're all looking at how need has changed coming out of Covid. And what we're finding is there's an increase in demand for our service, so we need to be looking at how we can increase our service capacity to meet that demand.

"It is worrying for an organisation like us working with families because we know that, for children to thrive, they need the basics for life. They need feeding. They need food. We had a mum who told us two weeks ago that she was glad to get into group because she was going out during the day to save the heating in the house, so that when the two eldest children came home from school, she can put the heating on.

"And if those children, whether they be young children or young people, don't have their basics at home, that impacts every area of their life and their development in terms of physical health, mental health, emotionally, educationally. It will all just be impacted."

The cost of living crisis is presenting the most vulnerable people with some impossible choices. When the basic needs of human beings are not being met, do we need to take a step back and ask whether funding could be better spent? Many, including myself, would argue this should be the responsibility of the government, and its recent interventions will help. But they will not be enough.

Jumping from crisis to crisis is exhausting. Pausing really innovative and impactful funding is incredibly frustrating. But funders have shown they can be agile and responsive to need. Is now the time to act?

Are you a funder? We’d love to know what you think.

If you would like to know more about our stakeholder and applicant perception research with funders please get in touch with Tim (timothy.harrison-byrne@nfpresearch.com)