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Financial Support for Charities - A Welcome Announcement But Is It Enough?

on Thursday, 09 April 2020.

The government has begun distributing financial aid to charities and essential organisations, such as hospices, to avoid the ongoing threat to all businesses.

Yesterday, 8 April 2020, Chancellor Rishi Sunak announced financial support for charities - a total of £750 million of funding for the charity sector -

  • £370 million to support small, local charities working with vulnerable people. £60 million of this will be allocated through the Barnett formula to Scotland, Wales and Northern Ireland.
  • £360 million directly to charities providing essential services and supporting vulnerable people, as we battle coronavirus (COVID-19). Up to £200 million of this will provide grants to support hospices, the rest to "organisations like St Johns’ Ambulance and the Citizens Advice Bureau [and] charities supporting vulnerable children, victims of domestic abuse, or disabled people."
  • At least £20 million to the National Emergencies Trust as match funding to public donations to the BBC's Big Night In charity appeal.

Coronavirus Legal Advice



Room to Breathe For Charities

The announcement will be welcomed by many. For some organisations it will be a lifeline, winning them valuable time to plan for the future and make the changes necessary to survive and continue delivering much needed services. For example, hospices like many charities have been reviewing their financial positions urgently in recent weeks. Unsurprisingly, Hospice UK has welcomed the announcement saying "This unprecedented funding recognises the vital role that hospices play in supporting the NHS in its fight against COVID-19, and means hospices across the country can keep providing beds, specialist clinical care and staffing to relieve pressure on the NHS at this critical moment."

The work of sector umbrella bodies and leaders pulling together to press the government for this support has been impressive. It was good to hear the Chancellor acknowledge publicly that "One of our greatest strengths as a country is our civil society" and describe the work of charities in providing "so much compassion, care and community to the most vulnerable in our country".

More Action is Still Needed

However, as NCVO point out, the promised £750 million "will not be enough to prevent good charities around the country from closing their doors [and] many that survive will look very different in a few months’ time, with a severely reduced capacity to provide the support that people rely on."

It is good to see the commitment of NCVO, ACEVO, NAVCA, ACF and others pressing the government for further support.

Meanwhile -

  • eligible charities will be hoping that the urgently needed funding will be distributed quickly,
  • many charities not covered by this announcement will be urgently assessing what is on offer and when it will be delivered - and revising their financial projections accordingly.

Find out more about the key issues for charity trustees responding to the coronavirus crisis.


For specialist legal advice on financial support for charities, please contact Shivaji Shiva in our Charity Law team on 07788 313298, or complete the form below.

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