The calendar says the summer holidays are here, although sadly we’re still waiting for the good weather to arrive. It’s an exciting time of year as we make plans to take some time off work, catch up with family and friends, or maybe jump on a plane to get a glimpse of thatelusive sun. For the charity sector, however, holiday periods tend to add pressure to their already heavy workloads. And when resources get stretched, there’s always a higher risk of something going wrong.
Financial pressures
‘More for less’ is the mantra the charity sector has had to work with in recent years. Inflation may have dropped from its historic high of 11.1% in November 2022, but higher prices for everything from energy and accommodation to food and transport continue to put a squeeze on people’s budgets.
The use of food banks is an effective barometer of poverty levels, and the reliance people have on outside help. Depressingly they’ve never been more in demand.
According to the Trussell Trust, which runs a network of foodbanks in the UK, more than 3.1 million emergency food parcels were distributed in the year to 31 March 2024. This is an increase of 94% during the past five years. The number of people who used a food bank for the first time during the same period was 655,000, which highlights the growing number of people who need help.
Higher demand for charitable help drives the need for more money and while charitable giving has held up, the number of donors is not increasing.
The UK Giving Report 2023, published by the Charities Aid Foundation, stated: “Weestimate that the total amount given in the UK in 2022 was £12.7 billion, increasing from £10.7 billion in 2021. The increase in the amount donated is as a result of people, on average, donating more, rather than an increase in the number of people donating. This record figure needs to be considered in the context of high inflation.”
It’s also important to point out that the war in Ukraine generated a spike in donations and that the uptick wasn’t felt by charities across the board. Particularly domestic ones.
For Third Sector organisations, the challenge is trying to meet the increased demand for their services at a time when their own cost bases are rising, and their income streams are under pressure. This challenge is exacerbated during the holiday season when a reduction in casual giving can put short-term pressure on cash-flows.
Leadership teams have to be vigilant when trying to plug the growing demand gap, and make sure their organisation doesn’t stray into areas where it doesn’t have the appropriate authorisations, capabilities and resources.
Similarly, they’ve got to continue to invest in their own operational health and make sure vehicles, properties, IT and equipment remain fit for purpose. If the fabric of your charity fails, any short-term savings in under-investment will quickly be overtaken by the impact on your ability to support those in need. And if your wider estate hasn’t been well maintained, it could create issues with insurance – which won’t pay out for claims that are attributed to wear and tear or negligence.
Volunteers
Holiday periods can also put added strain on the number of volunteers available. And this is on top of the ongoing decline in volunteering numbers that charities are facing.
The UK Giving Report 2023 highlighted this challenge for the sector with “Around 1.6 million fewer people volunteering compared to five years ago.”
The continuing fall in volunteer support, combined with a short-term scarcity during holiday periods, makes it especially important for charities to schedule their activity carefully during these pinch points.
Any shortfall in headcount can make it difficult to run events, carry out fundraising activityand simply meet the day-to-day demands of delivering services. And when people are under pressure and stretched, it’s more likely they’ll make mistakes. Such mistakes, whether in desk-based operations or during in-person service delivery, can of course lead to damaging and costly losses.
I don’t want to take the sizzle out of summer by focusing on the additional pressures that the main holiday season can create, but I do think it’s important that charities take account of these factors when planning their schedules over the summer months and minimise their potential for losses across their operations.
If you’d like to discuss how your risk profile might change during holiday periods, please get in touch with us here at Keegan & Pennykid and we can talk through any potential challenges you might be facing and help ensure that you have the right levels of protection in place.
