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Three quarters of Northern Ireland charities facing funding cliff-edge

CO3 chief executive Nora Smith
CO3 chief executive Nora Smith

THE north's charity sector faces imminent collapse because public fund-raising activities have dried up in the face of the pandemic, and few are able to benefit from a third secto £750 million package.

And three quarters of the region's 6,000-plus registered charities say they are now reporting ‘serious financial difficulties’ and may have only weeks to survive.

It has promoted CO3, the sector's representative body, to demand calls urgent intervention from the Stormont Executive.

In the last week CO3, in partnership with the Institute of Fundraising, surveyed more than 200 charity chief executives and has described the findings as "shocking".

Just £21m of the £750m rescue fund announced on April 8 has so far been allocated, representing a paltry average of £3,400 for each of the region’s registered charities.

The survey also revealed that charities have been largely locked out of government support schemes, with just 8 per cent managing to access rescue grants and 97 per cent deemed ineligible for the Coronavirus Business Interruption Loan (CBIL) Scheme.

Nora Smith, chief executive of CO3, said: “The situation for charities and third sector organisations in Northern Ireland is desperate, with over 75 per cent reporting serious financial difficulties since this crisis began.

“They've seen their incomes slashed overnight and are now in the position where they need serious, targeted and comprehensive Executive intervention.”

She added: “We've seen very targeted and comprehensive support packages for businesses, but many charities and social enterprises are ineligible to apply for them. This is despite the fact that in Northern Ireland, over 45,000 people are employed by the sector and it contributes over £1.5 billion to the local economy.

“In addition, charities are providing many public services that are needed now more than ever. We’ve seen charity directors having to make very tough decisions in recent weeks about cutting services at a time when people really need them.

“If we are to get through this crisis together, it's important charities are supported by government to continue delivering much needed support.”

The survey found that two in five charities have had to stop some key services due to financial pressures while another third expect to take similar steps in the coming days and weeks.

Cancer Focus NI is among the charities forced to suspend many of its services, including counselling for cancer patients, while some staff have been furloughed to protect cash flow.