Charities are suffering from higher costs and lower donations, it has been revealed.
Consumers are pledging less money to charitable causes as their own finances suffer during the credit crunch, it has emerged. According to a poll by the Charity Commission, one in four charities that accept donations has seen contributions fall over the last year.
More than half of the 500 charities questioned said they had been hit by increased costs for essentials such as energy and travel, while one in 12 have been forced to cut staff numbers as a result of financial pressures.
At the same time, one in five charities has experienced increased demand for its services, particularly those working in the areas of health, social services and elderly care. Charity Commission chairman Dame Suzi Leather said many charities are concerned about how they can continue to meet people's needs under the circumstances.
"Charities, like many organisations at present, are facing a great deal of uncertainty and for some the situation could get much worse," she warned, adding that the collapse of Icelandic banks Landsbanki and Kaupthing could pose additional problems.
Citizens Advice reported recently that it had experienced a 50 percent increase in enquiries from consumers struggling with debt over the last 12 months. The number of people contacting the charity for advice on paying their energy bills was also up by ten percent.
