JGP News

Although charities are likely to experience difficulties as the financial crisis rumbles on, reports of en-masse difficulties for those working within the third sector may find that could be exaggerated.

In a report published by Professor John Mohan from the University of Southampton and Karl Wilding, head of research for the National Council of Voluntary Organisations, it was suggested the impact that the economic downturn will have on charities will depend as much on individual organisations” internal management and resources as it will on factors beyond their control.

Meanwhile, those looking to improve sustainable efficiencies may be interested to hear the pair’’s claims that charities have traditionally be well-equipped to manage through economic times, while local community-based organisations could actually see a rise in donations.

"Charities should beware of crying wolf. Inevitably, some types of organisation will suffer more than others, but predictions of widespread gloom may be exaggerated," Professor Mohan claims.

However, Danny Davis - insolvency specialist at Mishcon de Reya - recently stated in a ThirdSector.co.uk article that those charities struggling to manage through the downturn should be prepared to make some tough decisions.

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