A new survey of over 700 small charities has found nearly half face closure within a year. We visit three charities supporting Britain’s poorest families – all now facing their own cash crisis
When Mandy Harrison first came through the doors of Reach Community Grocers in Derby, she was at rock bottom. “Last year, I was so low I wanted to take my own life,” the 63-year-old grandmother says. “When I found this place, I sat here and cried for two hours, while they held my hand.”
Mandy is a breast cancer survivor and struggling to survive on disability benefits when she first sought help at the charity. “I’ve been through a lot of trauma in my life,” she says. “We were a happy family at one time. But, sadly, my husband died suddenly.” At the community shop, a food shop costs just £6, but it is also the sense of community that has helped Mandy. “I can’t tell you how amazing this place is,” she says. “I’m a different person compared to last year, when I was scraping the bottom of the barrel. This place helps massively, I can get some shopping and have a hot drink with the volunteers and staff. And I buy clothes from their charity shop.”
As the cost-of-living crisis deepens, millions of people across the UK are reliant on support from small charities. But now many of those charities are in crisis themselves. A new survey of over 700 small charities has found nearly half say their financial situation is so grave they’re at risk of closure within a year. One in 10 charities with incomes under £1 million have less than six months’ funding left – pushed to the brink by a ‘triple whammy’ of rising costs, increased demand and shrinking income from public donations and grants, says the National Council for Voluntary Organisations (NCVO).
Andrew Moorley, Steve Appleby Bill Stone, Gail Moorley and Phillip Ford with Manager Gillian Davel(Image: Paul David Drabble)
Small charities like Reach Community Grocers make up 85 per cent of the UK’s voluntary sector – yet they receive just 12% of total sector income. Manager Gillian Davel says it’s the stories of the people they help that keep them going – against a shortfall of around £40,000 needed to pay for running costs. “Little donations are helping, but we need the bigger stuff to survive,” she says. “I sit there ringing companies from the UK Company Giving Book to ask if anyone can help. Some days we have up to 40 people through our doors – there is a lot of in-work poverty, people can have a car, a house, a job and still struggle. Small charities do so much more than what people think.”
Losing small charities can be especially damaging for communities, explains NCVO’s Saskia Konynenburg. “Small charities bring deep local knowledge and flexible solutions, often where statutory services don’t reach,” she says. “They’re often the glue that holds our communities together, working behind the scenes and providing vital services with finite funds.”
The One Can Trust in High Wycombe, Buckinghamshire, supports around 400 people a week through its foodbank, as well as running a clothes bank, toddler group, cookery classes, community cafe, and school meals programme. Chandni Hanif, 28, a former specialist sourcing partner in Human Resources, turned to the Trust after she and her son became homeless.
“I noticed a poster for the One Can Trust toddler sessions in the changing rooms at the shopping centre,” she says. “It said, ‘snacks available’ and it sounds silly, but that enticed me. I went along and had a coffee while my little one played with children his own age – it was a really nice environment. I started going to their other sessions too. It became a safe space.
“I started to build a relationship with staff, I began to trust them and told them my circumstances. There have been times I haven’t been able to afford essentials like pasta or nappies and I’ve been able to send a message to One Can Trust who’ve turned up with nappies. They genuinely care and make sure children don’t go without.
“But they do so much for adults too – like give us an Easter egg or Christmas goody bags with skincare and treats, it means so much to be acknowledged as a parent. I even got my son’s Eid outfit from the clothes bank. Their services changed everything for me, they prompted me about work and what services I can access. When I moved into temporary accommodation, they helped me get a freezer and a mattress.
“I made a lot of mum friends through the charity. I go to their supper club during the school holidays, we get a dessert too – a bit of a luxury. When I became a parent things became very tough for me, but One Can Trust provided me with a lifeline.”
Operations manager Jo Belshaw says the charity was well-supported during Covid because of the media’s focus on food poverty. “But for the last two years, securing funding has been much more challenging,” she says. “We rely heavily on food donations from the community and are extremely grateful to everyone who supports us. However, food donations were 21 per cent down in the first six months of this year compared to last. We want to make sure no one goes hungry and will need to increase our efforts to ensure donations meet demand.”
Deirdre Kehoe is the CEO of LMK (Let Me Know), which delivers thousands of workshops a year to young people in London, aimed at preventing relationship abuse. “There is a massive focus at the moment on violence against women and girls, online harm and misogyny,” she says. “As an organisation we find ourselves doing incredible work that is so badly needed everywhere, but it is so hard to secure that ongoing support. I’m very worried about the next financial year, we have to run faster just to stay still. The demand is massive, and we won’t be able to meet all of it.”
Back in Derby, Lucy Woodhouse, who works as a healthcare assistant, is visiting the community shop. Her husband is an engineer, and both work full-time. Their three children all have additional needs. “I come here three times a week to help top-up our weekly food shop,” Lucy, 33, says. “It means we can cut down on what we spend in Aldi, which is now twice a month, and I can make meals stretch. The fruit is amazing here and the kids love to get the crisps.
“We’ve definitely felt the pinch with the cost-of-living, even with both of us working full-time. Our biggest household challenge is childcare costs. My wages are just above minimum wage. I absolutely love my job, but it doesn’t pay enough. Coming here, there is a sense of support.”
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