Brown Butler Logo

0113 246 1234

0113 246 1234

The rate of inflation reduces the charity budget by £1 billion

A recent study performed by the Charity Excellence Framework has revealed that frontline public service funding is down by around £1 billion this year.

Whilst the Chancellor, Jeremy Hunt, pledged greater spending on English and Welsh charities in 2023, the rate of inflation has meant that many are not seeing the benefits.

Almost one-third of respondents to the Charity Excellence Framework study said that their charities were facing significant financial challenges.

Now, more than ever, robust financial planning is crucial to the survival of charitable organisations.

From an accounting standpoint, several strategies can be employed to help charities maintain financial stability.

Adopting a multi-faceted approach that encompasses income diversification, robust reserve management, careful budgeting, strict cost control, and transparent reporting can significantly mitigate the risks associated with fluctuating funding levels.

A reliance on Government funding is no longer a firm financial strategy considering current inflation rates.

Speaking to an accountant with expertise in charity finances is another valuable strategy for ensuring long-term growth and sustainable operations.

Please contact one of our experts for more information on charity financial planning and funding opportunities.


Can't find what your looking for? Search