Do hard times lie ahead for the third sector?

Cathy

What lies ahead for charity income in 2008? People give more when they have more. If consumer confidence falls they are likely to give less. The paradox of this is that just at the time when an economic downturn increases the need for charity, the amount given is likely to fall. Charitable giving is often one of the first things to be cut when times get harder.

A plethora of recent statistical indicators show the sector already has significant cause for concern. Levels of giving are directly linked to wider economic trends and GDP growth is widely expected to slow down in 2008. Consumer confidence is falling as the housing market weakens. High net worth giving will be affected by likely job losses in the City and lower bonuses. In the US shelters and food banks, a particularly important aid there, are already reporting more need among households, a result of both job cuts and loss of homes, while receiving less federal aid.

What should the UK sector be doing? How can it send out a message to the public that giving is not just for Christmas, and that it's during the hardest times that they most need to dig deepest into their pockets for charites?