Nearly 22 per cent of Irish charities have made staff redundant during the last six months, according to a new survey published today.
The survey, published by The Wheel, a support body for community and voluntary organisations, shows that charities have seen a sharp decline in revenues from January to June 2009, mainly due to a decline in State funding.
As many as three-quarters of the 146 charities surveyed reported a fall in their overall income with 67 per cent of organisations saying they were receiving less money from the Government than in previous years.
The decline in State funding has been particularly hard-hitting because nearly half of all charities say they receive 80 per cent or more of their income from Government sources.
While more than a fifth of charities have made staff redundant, only 1.3 per cent said they intended to cut more jobs over the next six months. However, as many as 47 per cent of organisations said they would have to consider reducing headcount if their financial situation deteriorates further.
The Wheel warned that community and voluntary organisations will have to diversify their funding sources, if they are to weather the recession.
“Even if Government revenues stabilise, charities should not expect the same level of statutory funding in future. Instead, organisations should develop their entrepreneurial skills and explore new ways of collaborating to reduce their costs,” said The Wheel's chief executive Deirdre Garvey.
In addition to a decline in Statutory funding, 30 per cent of charities said that they had experienced a drop in donations from the public since the beginning of they year.
Ms Garvey called on charities that they have to be more proactive in asking the public for donations.
"People may be able to give less, but many small donations could cushion the effects of further cuts in statutory funding,” she said.
The survey reveals that so far, charities have been responding to the crisis by suspending or delaying projects and cutting back in the areas of human resources and administration.
More than half of community and voluntary organisations said they were cutting back on salaries and personnel costs in a bid to reduce expenditure. However, 52 per cent of charities said that even with such cutbacks, they expect their financial situation to deteriorate over the next six months.
