The writer is the executive director of New Philanthropy Capital, a think tank and consulting firm.
The cost of living crisis in Britain is as big a threat to livelihoods as Covid-19. Many more people need help, but charities are finding it increasingly difficult to support them as inflation increases their own spending and reduces the value of reserves and pre-announced donations.
We need the same mobilization among philanthropists as we did at the beginning of the pandemic, but we don’t see anything like the level of coordination or donations required. Poor people cannot wait. Per philanthropiststhis is the moment to receive and give.
For those struggling financially, the outlook was grim even before inflation picked up. Over 9 million people in the UK live on absolutely low income (below 60 percent of the 2010/11 inflation-adjusted median).
And although life is more expensive for everyone, for the poorest, who are already tight with money, the crisis is existential. Trussell Trust delivered 2.1 million food packages between April 2021 and March 2022, 81 percent more than five years ago – 832,109 children.
The poorest households spend most of their income on food, energy and fuel, the fastest growing prices. Unlike their more affluent fellow citizens, there is not much to cut.
The Joseph Rowntree Foundation has calculated that low-income families will spend a fifth of their energy-only budget this year. For those who live alone, the figure is as high as 49 percent. Compare this to middle-income families who only spend about 7% even on rising demand for electricity. expenses.
Unemployment is not the main cause, and work may not save. According to Rowntree, more than two-thirds of poor households had at least one adult working, the highest rate of working poverty since registration began. Meanwhile, 54% of Universal Credit recipients still live in poverty, even with taxpayer help. Since neither work nor benefits solve the problem, philanthropists must intervene.
The same factors that make life difficult are also holding back charities and volunteers trying to help. Rising prices for food, energy and gasoline are a big problem if your mission is to feed, house or transport people.
Magic Breakfast claims that this year the cost of supplies has already increased by 17%, and the demand for preschool meals has doubled. Ark Resettlement reports that accommodation energy bills have risen by £40,000 compared to last year. These costs are fundamental; Cutting costs means cutting back on services just when more people need them.
Of course, the government could do more and show the same courage as in the case of layoffs. Let’s see. But patrons must intervene.
First, the obvious: let’s do more and let’s do it now. Unlike businesses, charities have nothing to celebrate in demand growth: you need to give more to achieve anything. Talk to your chosen charities and learn how costs and needs are changing and help them adapt.
Consider how you can help build capacity. If you have a fund or sit on a whiteboard, simplify apps so you can target money quickly. During the pandemic, 350 donors have signed a commitment from London sponsors to be flexible with delivery, timelines and budgets, and communicate openly with grant recipients. We now need such an approach.
Consider whether you need to balance your donations as needs change. Use data: ours Database of local needs is a good starting point. If you’re donating to a specific cause, coordinate to maximize your collective impact using platforms like 360Providing. Work with local authorities and local foundations to help those who need your help.
The pandemic has led to big changes in the behavior of sponsors. We need to keep these lessons in mind as this new crisis gathers momentum.