UK charities ‘near insolvency’ after subsidising public sector contracts

Charities are on the brink of insolvency after subsidising heavily underfunded local authority and NHS contracts to the tune of hundreds of millions of pounds donated to them by the public, voluntary sector leaders have warned. Donations, will legacies and charity shop profits are being used to prop up thousands of state-funded services in danger of closure, including care homes, homeless shelters, addiction projects and physical rehabilitation support schemes. One charity told the Guardian it used £6m a year raised from the public and other donors to subsidise clinical and care services it provided under contract to the NHS and local authorities, a sum it described as “unsustainable”. The refusal of local authorities, the NHS and government departments to fund the real cost of local service contracts – and the built-in assumption that voluntary sector will deliver “on the cheap” – was threatening the existence of vital local services, the National Council for Voluntary Organisations (NCVO) said. “It’s potentially catastrophic for communities if these services stop,” said Sarah Vibert, the chief executive of NCVO. “Many services, like homelessness interventions and support for victims of domestic violence or sexual abuse, wouldn’t currently exist without charities.”

https://www.theguardian.com/society/2023/nov/13/charities-near-insolvency-after-subsidising-public-sector-contracts

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