18 Acknowledged

The Department recognised that charities had lost traditional sources of income during the pandemic, such...

Conclusion
The Department recognised that charities had lost traditional sources of income during the pandemic, such as fundraising through large events like the London Marathon and the closure of charity shops. However, it also suggested that moving fundraising online may have increased overall funding levels. In addition, the Department highlighted that charities could access other government support throughout the pandemic, such as the furlough scheme.56 It explained that introducing match funding on the Community Match Challenge scheme sought to encourage the continuation of an “explosion in private philanthropy and fundraising” that it believed had been witnessed up to that point.57 Written evidence we received about charities’ income levels was more mixed; the Charity Commission told us that in the first half of 2020 individual donations increased by £800 million. We also received written evidence from the Association of Chief Executives of Voluntary Organisations (ACEVO), which told us that charities might have lost as much as £4.3 billion between March and May 2020. Pro Bono Economics ran a survey which suggested as much as £6.7 billion had been lost in income.58 The Department told us that it will not know whether the funding it distributed has met the increased demand caused by the pandemic until the evaluation is conducted.59
Government Response Summary
The government agrees and will set out current actions to monitor the charity sector's financial health. DCMS is undertaking a project with partners to review and improve data availability on the sector's health and resilience, considering options for better data use and collection, with an update to be provided in three months.
Government Response
Acknowledged
HM Government Acknowledged
1.1 The government agrees with the Committee’s recommendation. Target implementation date: September 2021 1.2 The Department for Digital, Culture, Media and Sport (the department or DCMS) will be able to set out current actions being undertaken to monitor and understand the financial health and resilience of the charity sector, including use of pandemic support schemes. 1.3 At this stage, there remain limitations and gaps in the evidence and data available to maintain a complete picture of the health and resilience of the charity sector. Drawing on learning from the COVID-19 pandemic, the department is working with partners, including the Charity Commission, to undertake a project to review and improve evidence and data available to policy makers, concerning the health and resilience of the charity and social enterprise sectors. 1.4 Options under consideration include making more effective use of existing sources of data and evidence, improving existing data sources, and commissioning new data collection mechanisms to fill gaps. The department will be able to provide an update on this work at the the Committee’s three-month deadline. However, plans for implementing change may not have been finalised at this point.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.1 yrs
Report published 09 Jun 2021