Kreston UK Charity Report 2024

We are delighted to share with you the Kreston UK Charities Report 2024. Here at James Cowper Kreston, we are proud to be part of Kreston Global, a network of 160 independent accounting firms across 114 countries.

This report, based on a survey of more than 80 UK charities, explores the financial outlook of the third sector, the challenges and risks being faced, and attitudes surrounding key topics such as diversity, recruitment, digitisation and sustainability.

Understanding and considering the experiences of a wide range of charities can provide important guidance so that the sector can adapt and grow, helping to deliver the best outcome for the country and its people.

The report shows that, despite the uncertain economic times, many charities are confident with their financial outlook for 2024, with almost half believing their financial outlook is positive.

However, this does not mean that charities have not experienced rising costs over the last 12 months. The cost of living, soaring energy bills and inflation continue to present challenges for the third sector, with costs increasing for outgoings such as wages, energy and insurance.

The majority of charities are also experiencing pressures on their income streams and, as a result, 67% are exploring options to diversify them. This includes tactics such as growing their major donors, grants, trusts and foundations, legacies and corporate giving.

The report also shows that recruitment remains a real concern for the sector - 54% are finding it hard to recruit and retain employees, and 29% believe it has become harder in the last year.

While it is no surprise that the charity sector is faced with financial and workforce challenges, the outlook still appears to remain positive. Over three quarters of those surveyed feel that their charity has the capacity to deliver its required services - but it remains to be seen whether this will continue, if concerns surrounding funding and recruitment are not addressed over the coming year.

To read the full report please click here.