Main challenges facing small charities

Overview

Over a five-year period, the greatest challenge small charities faced was their workload, followed by funding, and demand for services.
In 2019/20, the challenge of rising demand for services (18%) had overtaken funding (16%) as small charities’ second greatest challenge.
In 2017/18, over half of small charities (57%) reported that their most pressing issue was ‘generating income and achieving financial sustainability’.
In 2019, 95% of charities reported they perceived public trust had declined. Small charities were least likely to perceive this to have any effect on their organisation compared to large charities.

Between 2014/15 and 2019/20, the challenges facing small charities have remained relatively consistent.
Over a third of small charities have consistently reported workload as their greatest challenge. This is followed by funding and demand.
Between 2014/15 and 2019/20, the proportion of charities reporting recruitment as their greatest challenge rose from 3% to 8%.

In 2017/18, over half of respondents reported ‘generating income and achieving financial sustainability’ as their most pressing issue for the next 12 months.
Charities are almost four times more likely to identify funding issues as the most pressing issue facing their organisation than any other issue, year-on-year since 2015.

In 2020, the majority (95%) of charities agree that public trust in the charity sector has declined.
In 2020, over half (52%) of small charities reported that a decline in public trust has no effect on their organisation, up from 47% in 2017.
Small charities are notably less likely to feel affected by a decline in public trust than large charities.
The aspect of operations perceived to be most affected by a decline in public trust is reduced fundraising income, which was seen as less of an issue for small charities than for large and major charities (18%, compared to 31% and 27% respectively in 2020).

Insight

How has COVID-19 affected the needs and services of small charities? What challenges has COVID-19 posed?

Insights

What skills are small charities strongest in? Where do they need upskilling?