Locate in Kent has reported that London based accountancy firm Kreston Reeves has taken issue with the government’s Covid-19 support measures for charities, warning that they do not go far enough.
On April 8, chancellor Rishi Sunak unveiled a £750 million support package as a lifeline for frontline charities affected by the coronavirus pandemic. Government grants of £360 million will be accessible to charities which provide “essential services and supporting vulnerable people”, with an additional £370 million going toward smaller community charities.
However, charity accountants and advisers Kreston Reeves, have warned that the support, albeit welcome, will not be enough to protect all charities who are providing frontline support, let alone the rest.
The government has also conceded that it will not be able to help all of the 170,000 charities in the UK and has recommended that they look into schemes made available for businesses in order to find much needed assistance.
Kreston Reeves partner and head of charities, Susan Robinson, said of the measures: “This package of support was not the answer charities were looking for. Many charities that are on the front line – those helping the elderly or vulnerable adults for example – do not appear to qualify for support.
“Charity fundraising has fallen off a cliff, they have seen investments stutter, and face long delays in benefiting from legacies. And with limited reserves, the current crisis will see charities close their doors or face financial collapse at a time when they are, arguably, needed the most.
“It is unlikely that financial support will reach charities before the end of April. It is a worrying time for charities and their trustees.
“There will be life after this crisis and the charity sector will be vitally important”.
Kreston Reeves has advised charities to carefully look at cashflows and budgets and apply for all applicable government funding.
The firm has also recommended that charities ensure gift aid claims are fully updated, look to their local communities for wider support, and cancel any unnecessary direct debits.
