SMALL CHARITIES FUNDING DIFFICULTIES
The Social Workers’ Benevolent Trust (SWBT) is part of the 96% of small charities in the voluntary sector in the UK, with an income of under £1million a year.
Small charities sustainability is under threat as over 51% of the sector income comes from the public, with people donating to charities falling and figures dropping due to the cost-of-living crisis alongside other factors.
“Economic factors and funding constraints, economic downturns, budget cuts, and shifting government priorities can all have a significant impact on the funding available to small charities. These organisations often heavily rely on government grants, corporate sponsorships, and public donations.“
A survey conducted by The Charities Aid Foundation UK- ‘Giving Report 2023’, stated that more than 50% of the UK’s charities are using their reserves, half fear they will not survive the cost-of-living crisis, and only 49% think they have enough funds to meet current demand. “As 2023 unfolds, charities are in the middle of a perfect storm of growing demand, rising operating costs, and a widely predicted and significant
“As 2023 unfolds, charities are in the middle of a perfect storm of growing demand, rising operating costs, and a widely predicted and significant income drop.”
Social Workers Benevolent Trust Position
The SWBT annual income and funding difficulties are evident when comparing the income generated in the pre Covid before 2020, post Covid after April 2022 and cost-of-living crisis late 2021 figures:
Income: 2018/2019 £78,831 – 2021/2022 £139,175 –2022/2023 £131,945.
Although the income figures show an increase over the period this has been from a generous bequest, with a further one-off grant from Civil Service Insurance Society, the continued agreed contribution from BASW’s membership annual payment, and generated income from the Trust’s investments has avoided the use of SWBT capital assets.
During this period there has been a significant demand for grants from applicants facing hardship:
Applications Received: 2018/2019 186 +16% – 2021/2022 243 + 63% – 2022/2023 342 + 39%.
Unfortunately, the Trustees had to make hard decisions knowing applicants are in desperate situations, facing extreme financial hardship and due to the increase in demand. To ensure the income was sufficient, the baseline grant amount the Trustees agreed to a reduction from £500 in 2018-2019 to £400; then in 2022/2023 after an extraordinary meeting to review SWBT financial accounts, to £250 per applicant. Although, the baseline reductions are shown on SWBT website, at least 75% of applications request grants between £500 to £3000+, which SWBT is only able to agree the baseline figure.
Another key factor considered was the operational costs as expenditure less grants totalled in 2018/2019 £3888, in 2021-2022 £1734, and in 2022/2023 £2018. All the Trustees are volunteers, the Trust does receive welcomed ongoing administrative support from BASW; but with increases in operational costs for example postage. The outcome was it would be difficult to make any further savings and therefore set up an Income Generation Group to apply where possible, for potential funding.
The Income Generation Group have been and continue to be active in reaching out to organisations. The response so far:
Unsuccessful
- All 4 SW registration authorities in the UK approached, all declined as they are effectively public-funded.
- Approached ADSS and ADCS, again stated public-funded groupings.
- Both UNITE & UNISON without success.
- Discussions with BASW about increased membership funding contribution.
Successful
- Civil Service Insurance Society – applied for a one-off grant and again this year granted £20,000.
- Social Workers Union approached; a £500 grant received.
On going.
- Advice sought from Shahid Naqvid and Amanda Govani in BASW about funding sources and the use of a fundraiser. Further discussion to take place.
- The group identified Ellie Simmonds as a potential patron for SWBT following her positive adoption story on TV in discussions.
- Identified independent residential and foster care providers to approach in addition to SW recruitment agencies.
- A number of articles have appeared/are planned promoting SWBT and asking for donations in various publications and on social media.
The Trustees are committed to raises funds even though it is exceedingly difficult as a small, long standing, niche charity.
“Charities typically fall foul of the three interrelated issues when engaging with their individual, community and corporate networks. These are donation fatigue, low brand awareness and high management cost – the outcome of which is low fundraising income.”
SWBT does gratefully receive donations from individuals from the social workers community, in the region of £4000 per annum and recognise with the cost-of-living crisis, social workers do face financially hardship or are struggle financially; and many would not be able to donate. At present the Income Generation Group is exploring government funding, organisations and corporate networks and so far, has found any new money available appears to follow new and exciting start-up charities and investments in green/eco charities.
In the spirit of The Season for Giving
The Trustees will leave no stone unturned for SWBT to remain viable to give financial support to individuals of the social workers community, who give support to the most vulnerable in our society.
And if you are in a position to donate, or volunteer as a Trustee or know of any funds available please let us know and any donation/gifts will be gratefully received.
Please see on our website swbt.org ‘How to Make Donations’.
Liz Williams
SWBT Trustee