In a landscape where philanthropy plays a crucial role in addressing societal issues, small charities often find themselves facing significant challenges in accessing funding. A recent study by Pro Bono Economics sheds light on the giving gap, highlighting the untapped potential of small charities in the UK.
According to the research, small charities in the UK face an uphill battle when it comes to securing financial support, despite their invaluable contributions to local communities. In fact, the study reveals that while small charities make up 97% of the sector, they receive c20% of total charitable income. This staggering statistic underscores the urgent need to address the disparities in funding allocation.
The disproportionate impact of the post COVID-19 pandemic on small charities with fundraising events and resources stretched thin, many small charities have struggled to stay afloat during these challenging times. A stark picture is emerging: 70% of small charities reported a decrease in income due to the cost of living crisis further exacerbating the existing funding gap.
However, amidst these challenges lies an opportunity for change. By leveraging the power of philanthropy and raising awareness about the importance of supporting small charities, we can bridge the giving gap and unlock their full potential. One effective way to do this is by encouraging individuals and corporations to direct their donations towards grassroots organisations that are making a tangible difference in their communities, your pound goes a lot further !
Moreover, initiatives such as matched funding schemes and capacity-building programs can provide much-needed support to small charities, enabling them to thrive and expand their impact. By investing in these organisations, donors can ensure that their contributions have a meaningful and lasting effect on society.
Furthermore, it’s essential to recognise the unique strengths of small charities, including their agility, local knowledge, and ability to deliver targeted interventions. By harnessing these strengths and fostering collaboration within the sector, we can create a more resilient and inclusive philanthropic ecosystem.
In conclusion, the data presented in the Pro Bono Economics study underscores the urgent need to address the giving gap and support small charities in the UK. By mobilising resources, raising awareness, and advocating for change, we can empower these organisations to continue their vital work and create positive social change. Together, let’s bridge the giving gap and unleash the full potential of philanthropy in the UK towards grassroots charities.
Pro Bono Economics study: https://www.probonoeconomics.com/mind-the-giving-gap-unleashing-the-potential-of-uk-philanthropy