Not for Profit
Restructuring Activity: High
Restructuring activity in Not for Profit
The sector has been hit by the twin challenges of increased demand since the pandemic and declining levels of donations.
Not-for-profits funded largely by local/central government e.g., in the care or leisure sectors, have also been squeezed by public sector spending restrictions.
Increased overhead and compliance costs may result in consolidation and/or termination of non-core services/activities.
The pandemic proved especially challenging for not-for-profit organisations. Growing demand for services combined with reduced fundraising ability. However, the sector proved remarkably resilient and continues to deliver vital societal benefits.
The cost-of-living crisis is likely to have several knock-on impacts, including difficulties recruiting suitably qualified personnel and declining donations as incomes are squeezed. Changes in public spending may further reduce voluntary sector incomes and place greater burden on these organisations to provide support.
Managing cash and liquidity will be vital over the coming months to retain sufficient headroom to remain solvent whilst continuing to undertake core activities.
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