As a result of the ongoing cost of living crisis, charities may have to step in to meet missed public services demands over the next five years, new research has revealed.

According to research from the Charities Aid Foundation (CAF), 91 per cent (of the 1,000 charity leaders in the sample) expect that charities will be required to meet gaps in the supply of public services.

Despite this prediction, less than a third of respondents reported that they believe the Government values their contributions to public policy, although 64 per cent of charity leaders reported that they think the Government sees charities as vital connections to local communities.

However, in conjunction with inflationary pressures on households, 75 per cent of the charity leaders reported that demand for their services had increased during the pandemic.

A further 86 per cent believed that this demand would increase even more in the future.

How can charities meet this demand?

From the research, it seemed apparent that technology would be key in ensuring that charities can meet the heightened demand for their services.

The majority of respondents (88 per cent) noted that technology would open innovative new avenues for them to operate, whilst an even higher proportion (90 per cent) believed that technology would transform the workplace for charities.

Nonetheless, the future will not be without its challenges.

Financial sustainability was revealed as the main concern for charities, according to 58 per cent of the leaders in the survey, along with almost two thirds commenting on their pessimism regarding Government support going forward.

For help and advice with related matters, please in touch with our charity finance team today.