Charity donations hit by financial crisis
10 November 2008
The Telegraph
London: Oxfam is to cut up to 45 jobs as charities experience a drop in donations because of the financial crisis. The charity needs to make savings of up to 15 per cent from its operating costs as it prepares for a fall in the amount of money it receives from supporters. The fallout from the banking crisis means other charities may also have to rethink they way they solicit donations.
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ACE Africa, which helps fight AIDS in Kenya, has postponed plans for a celebrity fundraising champagne dinner featuring Lenny Henry and Sir Trevor McDonald because it feared the event would be viewed as "inappropriate".
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One in four charities that accepts donations has seen a fall in giving in the past year and one in 12 has had to make redundancies, according to a poll by the Charity Commission. Many are reporting a sharp fall in corporate donations, threatening the future of overseas projects that rely on long-term funding. Oxfam, which received £290 million in support from Britons last year, is expecting "zero growth" in donations in 2009 and is already planning cuts to keep down costs.
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A spokesman said between 35 and 45 jobs were under threat, mostly at its head office near Oxford. "We hope to make changes through staff not being replaced when they leave but some redundancies cannot be ruled out," he said. He said charities that raised money from a wide variety of sources would be most likely to weather the downturn, adding that Oxfam had seen a rise in shop sales thanks to former Topshop director Jane Shepherdson who has been rebranding some outlets as fashion boutiques.
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ACE Africa had postponed its £150-a-head "charity spectacular" that was due to take place in the gardens of the Royal Hospital in London's Chelsea later this month. The event, due to feature a champagne reception, three course dinner with wine, prizes and live music, has been put off until summer. Alastair Waddington, a trustee of ACE Africa, said: "Given what has happened in recent weeks we didn't think guests would feel comfortable attending that sort of event. It just didn't seem appropriate. There is money out there, and many of our supporters are long-term subscribers, but the climate has changed this year."
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The Charity Commission said falling support came at a time when many charities were in greater demand, with those providing health, care for the elderly and social services reporting a 21 per cent increase in calls for help.
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Megan Pacey, director of policy and campaigns for the Institute of Fundraising (IoF) said: "Seeking corporate donations has become much, much tougher and any organisation wanting to cash in assets such as shares will have lost money, so times are difficult."
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She added it was "too early" to say how charities would be affected in the longer term but that the IoF was conducting a study into the issue which is due to report next month. A Warwickshire charity that provides life-saving support for refugees in war-torn countries found itself victim of the credit crunch when it tried to sell its headquarters to raise funds for a project in the crisis-hit Democratic Republic of Congo.
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Richard Dickson, supporter relations manager for Cord, said: "We had a buyer but they pulled out and there hasn't been any interest because of the state of the property market."
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However, he added that the economic slowdown could lead to a rise in voluntary work. He said: "Anecdotally it seems there has been an increase in the numbers willing to do voluntary work, so there is a plus side to the credit crunch. I think people are beginning to realise how fortunate they have been in recent years and now they want to make a difference."
Keywords: civil society, Oxfam, donor aid
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