The Charity Commission recognises that many charities are facing difficult circumstances resulting from rapidly increasing costs. This may include their own cashflow but also concern for those they serve and for their own staff facing cost of living pressures. Some charities are also experiencing increased demand, particularly charities providing services to people in need. Donors may also be feeling financial constraints, leading to reduced income for some charities.
These financial challenges can have a major effect on charities and those who depend on them. This guidance is for trustees, especially trustees of smaller charities, who may need help when facing difficult decisions about their charity’s financial position. It does not directly address wider issues that those in the charity may face, such as staff hardships, but guidance is available for trustees from other organisations to support with this.