Very high

Not for Profit

COVID-19 has increased financial pressures on charities and not-for-profit organisations.

Sector trends & challenges

  • Reduced fundraising

    COVID-19 has limited the ability of many charities to fundraise, due to cancelled events and increased pressures on household budgets.

  • Government funding

    For not-for-profit organisations providing essential and/or public services (such as care, leisure and cultural facilities), funding from local authorities and central government has been squeezed in recent years.

  • Increased demand

    During COVID-19, a number of not-for-profit organisations have seen unprecedented demand for their services.

Sector rating profile

Not-for-profit

During the COVID-19 pandemic, many charities have been tackling the combined challenge of declining revenue, heightened demand for services, and increased operational costs. This has placed new financial pressures on the sector.

During this time, managing costs and liquidity will be critical in order to continue providing key services. Whilst not-for-profit have had recourse to both general and, in some cases, sector-specific government rescue funds, e.g., the Culture Rescue fund, overheads have continued to place pressure on reserves.

Over the course of 2021, the sector will need to continue managing costs keenly and have prepared a range of options depending on the pace of the wider economic recovery.

Find Your Expert

Steve Keley is Interpath Sector Champion for Not for Profit. For a full list of our senior people with experience in this sector use the button below.

Our senior team