Charity surpluses dropped by 60% in two years of recession

first_imgCharity surpluses dropped by 60% in two years of recession Howard Lake | 25 May 2011 | News The Charities Aid Foundation (CAF) reports that charities’ surpluses dropped by 60% between 2007 and 2009 during the recession, demonstrating that many charities are now operating “on a financial knife-edge with little room to breathe”.Analysis of charities’ annual returns on CAF’s recently launched website, Charity Trends, shows that registered charities in England and Wales had on average £24,507 of surplus in 2007, compared to £10,240 in 2009, which is the last year with complete data. Overall these charities’ total surplus dropped from £3.59 billion in 2007 to £1.45 billion in 2009. Adjusted for inflation, this total is even less than that recorded for 2002.CAF defines surplus as total income minus total expenditure.Colin Walton, Head of Charities at the Charities Aid Foundation said: “Our analysis shows just how difficult the last few years have been for charities financially.“The fall in surpluses makes things extremely difficult for charities as it means less to invest in their organisation and staff, less opportunities to expand their services and less to put aside into reserves. Charities have always had to work efficiently, but the situation over the last two to three years has meant more and more charities are working on a financial knife-edge.”www.charitytrends.org/InsightFull.aspx Tagged with: Finance recession AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis About Howard Lake Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world’s first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp and co-founder of GoodJobs.org.uk. Researching massive growth in giving.  26 total views,  1 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThislast_img read more