Confronting the cost of living crisis

The next big challenge

The cost of living crisis is as big a crisis as covid, possibly bigger. More people will need the help charities provide, yet charities will find it harder to support them as inflation increases their own costs and erodes the value of reserves and pre-pledged donations.

We need the kind of mobilisation among funders that we saw at the start of the pandemic, yet right now we’re not seeing this. Now is not the time to watch and wait. Destitute people can’t wait. So for philanthropists, it’s time to get on and give.

When the pandemic first hit, NPC was quick to respond with a philanthropy guide on how to keep charities serving. Now, as this new cost of living crisis engulfs an already battered sector, we’re drawing upon everything we’re seeing in the sector and what we’re learning from the charities and funders we work with to advise on how needs are changing, and the new complexities facing the charities who seek to meet them. We’re also compiling data through our Local needs databank, to help inform your decision-making.

Through the pandemic we saw big changes in funder behaviour. The experience taught us all the importance of a systemic approach to strategy, more equitable collaboration, sharing data and intelligence, more flexible funding, and putting a social recovery at the heart of policymaking. We will need to remember these lessons as this new crisis takes hold.

We hope this guide helps you to understand the pressures facing people in poverty in Britain, and how to fund effectively to help charities adapt. For bespoke advice, contact our consultants.

In this guide:

• What is it like to face financial hardship in Britain?
• Why is financial hardship rising?
• Who will be worst affected?
• What are the secondary effects of financial hardship?
• What is the government doing?
• How is inflation making it harder for charities to respond?
• How should charities adapt?
• How can funders help?
• What you can fund to reduce financial hardship