A new study has revealed that charities in the UK are facing a £10bn funding shortfall over the next six months, which could result in 1 in 10 charities going bankrupt this year.
The study, from Pro Bono Economics, assessed 261 organisations and found that 88% expect their income to be significantly reduced due to covid-19 and that 72% are bracing for a higher than normal demand for their services.
Not only are charities facing a sharp drop in income, but their services, as we can see from NPC’s interactive data, are never more needed. They’re trying to do more with less. Many of them are doing everything they can to continue providing vital frontline services. But it’s not a sustainable model – something has to give.
While the government has pledged £750m in support for charities, it won’t be enough to save the sector. It’s up to grant making organisations and corporate foundations to make funds readily available to them. But the challenge with the current system is that it can place a greater burden on charities. They’re spending countless hours and resources simply searching for funds that are available to them and even more time and money applying for these funds.
Grant makers can make significant impact by tweaking their existing processes
There are a number of things funders can do to help charities in their time of need. From reviewing their grant making processes, to using their power to impact positive change – funders can lead a much-needed rethink of the system to ensure that charities get the support they need when they need it quickly and efficiently
One way that funders can help reduce the burden on charities is to embrace a centralised system for grant applications. Brevio has been developed to streamline the grant application process for both funders and charities. Through advanced matching technology, Brevio alleviates the drain on charity resources to search and apply for funding, while also saving funders time and effort wasted reviewing ineligible applications. That’s because Brevio will only match charities with grants that they are eligible for, and works continuously.
Opening the lines of communication
By looking to a central grant application system, funders and charities can spend more time building a true partnership and focusing on what matters to them.
One of the big challenges that charities face under the current system is difficulty getting more information or feedback from funders. According to a report published by Smarter Grants Initiative, 83% of charities are unclear on who to contact within a grant making organisation for support.
With both parties embracing a central matching platform, they could free up time and resources spent on administrative tasks, open the lines of communication and actually focus on building a relationship outside of the application. With Brevio funders can also make smarter decisions, driven by data, about which charities they should partner and build relationships with.
While many of the changes needed will take time to put into effect, there are still things funders can do to help charities now. Making their grants available on Brevio would be a great place to start. If you want to know more, get in touch and let us show you how.