Immediate release: 25 July 2009
Charities have seen a significant fall in revenues during the first six months of this year, according to a new survey carried out by The Wheel, the national support and representative body for community and voluntary organisations, to measure the effects of the recession on Ireland’s community and voluntary sector.
Of the 146 responding organisations, 75% reported a fall in their overall income between January and June, while 67% reported a reduction in the amount of funding they received from Government. Moreover, the survey found that nearly half of all charities (44%) receive 80% or more of their total income from Government sources, and 45% do not fundraise directly from the public at all.
The Wheel’s chief executive, Deirdre Garvey, said community and voluntary organisations will have to diversify their funding sources, if they are to weather the recession. “Even if Government revenues stabilise, charities should not expect the same level of statutory funding in future,” she said. “Instead, organisations should develop their entrepreneurial skills and explore new ways of collaborating to reduce their costs.”
Garvey added that although 30% of organisations experienced a drop in public donations since the beginning of the year, charities should intensify their fundraising efforts to minimise the effect of future cuts on their ability to deliver services. “We are saying to charities that they have to be more proactive in asking the public for donations. People may be able to give less, but many small donations could cushion the effects of further cuts in statutory funding,” she said.
The survey reveals that so far, charities have been responding to the crisis by suspending or delaying projects and cutting back in the areas of human resources and administration. Nearly 60% have either suspended or delayed projects during the past six months, and 22% have already made staff redundant. More than half (52%) expect their revenues to fall further this year.
NOTE TO EDITORS:
Deirdre Garvey, CEO of The Wheel is available for interview. Contact Gert Ackermann,
M: 086 176 9287
E: gert@wheel.ie
ABOUT THE WHEEL:
The Wheel is a national non-profit support and representative body for community, voluntary and charitable organisations. We provide a wide range of support services, information and training to individuals and organisations involved in community and voluntary activity, and we represent our sector’s interests in several fora, including the social partnership process.
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