Research and analysis

COVID-19 Survey 2021

Published 28 October 2021

Applies to England and Wales

Executive summary

Nearly all charities (91%) in England and Wales have experienced some negative impact from Covid-19. The consequences have been wide-ranging and often severe, spanning service delivery, financial and staffing issues, as well as frustration and uncertainty.

• Covid-19 has predominantly impacted charities’ services and delivery (85%), alongside their financial position (72%) and staffing and governance (66%)
• work or events have been postponed and cancelled (57%) and many charities have lost income from fundraising (49%) or trading and other sources (35%)
• operationally, there is frustration caused by the uncertainty around when charities will be able to return to ‘normality’
• a majority have lost income from charitable activities (60%)
• access to volunteers has decreased for a third of charities (32%)
• few have encountered or suffered any significant impact from cyber harms

Many charities have actively tried to counter the impact of Covid-19, most commonly by adapting their services.

• the most common action taken by charities is adapting their services in light of restrictions (45%), followed by using financial reserves (40%) and even pausing operations temporarily (32%). A fifth have furloughed staff (18%)
• restrictions have resulted in less emphasis on in-person events and cash donations
• whilst the pandemic has undoubtedly presented significant challenges, there have been some benefits from positive changes made. Half of charities (49%) have made better use of digital technology

Whilst many have actioned changes in light of Covid-19, there is some concern surrounding future viability.

• a significant minority (34%) expect to generate less revenue from fundraising and donations in 2022
• over half (62%) anticipate a threat to their charity’s financial viability in the next 12 months
• however, a majority expect their charity to be in the same or better position overall

Some charities have already accessed funding support, but many would appreciate further clarity on where to find it.

• 20% have accessed Local Authority funding, and 14% have used UK Government funding
• half (50%) would find more information on financial support helpful, and often suggest the Charity Commission could do more to help charities find/access it

Summary findings

Impact of Covid-19

Most charities have been impacted by Covid 19, primarily in their ability to deliver their services. Many have lost income from fundraising and charitable activities.

Most charities (91%) have been impacted by Covid-19. Many have lost income from fundraising or have delayed and cancelled work.

Q. In which of the following ways, if any, is your charity currently being affected by COVID-19 and the restrictions more generally? Base: All (1,966)

None of these

9%

Staffing / Governance (66%)	%
In some other way	10%
Staffing issues	12%
Do not have the capabity to make use of the available volunteers	12%
Increased need for mental health and wellbeing support for staff, volunteers	17%
Volunteers are unable to work	29%
Charity struggling to meet or discuss matters	30%
Unable to hold an AGM	30%

Service / delivery (85%)	%
Charity is no longer viable and has closed or is being closed	1%
Unable to influence key decision makers	4%
All charity operations suspended	12%
Increased demand for services	17%
Decreased demand for services	17%
Disruption of support or services to beneficiaries	28%
Working at a reduced capacity	31%
Prevented from working/delivering services due to restrictions	37%
Some charity operations suspended	39%
Planned work/events postponed or cancelled	57%

Financial (72%)	%
Short-term risk (within next 6 months) to charity reserves	17%
Long-term risk to charity reserves	18%
Lost incoming from trading and other sources (not fundraising)	35%
Lost income from fundraising	49%

Suspension of charity operations has had a severe effect on those impacted

Q. Thinking about the following impacts of COVID-19 and the lockdown measures more generally, to what extent has each negatively affected your charity? Base: Bases vary between 13-973. **NB Very Low Base Size

Affect	Severely affected	Very much affected	Moderately affected	Very slightly affected
Charity is no longer viable and has closed or is being closed**	85%	8%	8%
All charity operations suspended	61%	28%	8%	3%
Other	41%	29%	20%	11%
Planned work/events postponed or cancelled	40%	34%	20%	6%
Prevented from working/delivering services due to restrictions	40%	40%	17%	3%
Lost income from fundraising	37%	31%	25%	7%
Lost income from trading and other sources	36%	31%	25%	7%
Unable to hold an AGM	36%	26%	23%	15%
Volunteers are unable to work	32%	32%	28%	7%
Disruption of support or services to beneficiaries	28%	38%	28%	6%
Unable to influence key decision makers	26%	37%	34%	4%
Decreased demand for services	24%	36%	30%	10%
Do not have the capacity to make use of the available volunteers	24%	37%	30%	10%
Long-term risks to charity reserves	21%	31%	39%	8%
Some charity operations suspended	21%	38%	30%	10%
Increased demand for services	18%	41%	34%	7%
Working at a reduced capacity	18%	42%	34%	6%
Charity trustees struggling to meet or discuss matters	18%	30%	42%	11%
Short-term risk to charity reserves	17%	33%	38%	12%
Staffing issues	15%	39%	40%	6%
Increased need for mental health and wellbeing support for staff, volunteers, beneficiaries	13%	33%	41%	13%

Half of charities are frustrated by uncertainty caused by COVID-19, which is often cited as the most severe operational impact

Q. Considering any operational challenges that may affect your charity’s ability to achieve its purpose. Which of the following operational challenges, if any, is your charity facing because of COVID-19 and the restrictions? Base: All currently affected (1,787)

Operational challenges experienced	%
Frustration of not knowing when the charity will be able to resume its usual services/activities	50%
Changing the way the charity works	47%
Adapted to frequent changes of Government restrictions and guidance	42%
We can’t do any long term planning because of uncertainty	39%
Closed or inaccessible premises meaning it is not possible to provide support, activites or services	35%
Charity trustees/ staff are having to spend more time planning and responding to ongoing changes	34%
We can’t help our beneficiaries as much as they need because of ongoing restrictions	30%
Extra challenges to ensure the health and wellbeing of staff/ volunteers	29%
We are having to find new ways of fundraising	27%
It is more difficult to reach beneficiaries	22%
More time looking for new sources of funding	21%
Staff/ trustee/ volunteer fatigue or burnout from working on an emergency footing for an extended period	16%
We have technological barriers to delivering support	10%
None	7%
Something else	5%

Q. You said that your charity is facing the following operational challenges because of COVID-19 and the restrictions. Which of those challenges have had the most severe impact on your charity? Base: All currently facing operational challenges (1,657)

10 most severe challenges	%
Frustration of not knowing when charity can resume its services	27%
Closed or inaccessible premises meaning it is not possible to provide support/activities/services	25%
Changing the way the charity works	25%
Inability to provide support, activities or services	25%
Inability to do long-term planning due to uncertainty	20%
Adapting to frequent changes of Government restrictions	19%
Inability to help beneficiaries	16%
Spending more time planning & responding to ongoing changes	12%
More time planning & responding to challenges	12%
Finding new ways of fundraising	12%

The pandemic has resulted in decreased income for many charities, most commonly from charitable activities

Q. What impact do you think COVID-19 and the restrictions have had on the income your charities raised in 2020-21? Base: All (1,966). NB Not showing data labels <2%

Impact	Decrease	Slight decrease	No difference	Slight increase	Significant increase	Not applicable	Don’t know	Sum decrease
Charitable activities	40%	19%	14%	4%	3%	16%	2%	60%
Other trading activities	28%	11%	11%	2%	<2%	45%	2%	39%
Donations and legacies	21%	18%	25%	8%	5%	21%	3%	38%
Other	9%	6%	21%	2%	3%	46%	13%	15%
Investments	9%	11%	25%	3%	<2%	50%	2%	20%

A third of charities have experienced a decrease in volunteers

Q. What has been the impact of COVID-19 on the number of volunteers you engage? Base: All excluding charities no longer viable (1,953)

Increase (10%)	%
A slight increase	5%
A moderate increase	4%
A major increase	1%

Decrease (32%)	%
A slight decrease	12%
A moderate decrease	11%
A major decrease	9%

No effect / stayed the same	%
No effect	34%
No use of volunteers	20%
Don’t know	3%

Few have experienced cyber harm or threat

The majority of charities have not experienced any form of cyber harm or threat

Q. During the last 12 months, has your charity experienced any form of cyber harm or threat? Base: All (1,966)

Form of cyber harm / threat	Neither	Successful	Unsuccessful	Sum experienced
Distributed Denial of Service Attack (DDoS)	99%		1%	1%
Unauthorised remote access	97%		3%	3%
Hacking / Extortion	96%		3%	4%
Phishing / malicious emails	78%	1%	22%	22%

…..when they did, they were often in the form of phishing/malicious emails offering false Government grants

Q. Were the cyber harm(s) encountered by your charity influenced by COVID-19? Base: All experiencing each, Phishing (439), Hacking/extortion (73), DDoS (20)*, Unauthorised remote access (60). NB Not showing data labels <1%. **NB Very low base size

Form of cyber harm / threat	False government grants	Vaccine related	PPE contracts	False recruitment	Facilitated via imposed remote working	None
Phishing / malicious emails	17%	8%	11%	4%	8%	68%
Hacking / extortion	12%		5%	3%	12%	71%
Distributed Denial of Service Attack (DDoS)	5%		5%	10%	5%	80%
Unauthorised remote access	5%	3%	3%	3%	15%	75%

Most who experienced cyber attacks did not experience any impact as a result

Q. What was the impact of the incident within your charity? Base: All experiencing each, Phishing (439), Hacking/extortion (73), DDoS (20)*, Unauthorised remote access (60). NB Not showing data labels <2%. **NB Very low base size

Form of cyber harm / threat	No impact	Other	Reputational damage	Reduced charitable operations	Data breach	Financial loss
Phishing / malicious emails	94%	3%
Hacking / extortion	79%	8%		5%	5%
Unauthorised remote access	75%	10%	5%	5%	2%	3%
Distributed Denial of Service attack (DDoS)	70%	5%	10%	5%	10%

The pandemic has had wide-ranging consequences for beneficiaries

Charities indicate almost half of service users and beneficiaries experienced increased levels of loneliness, isolation and anxiety

Q. For this question, please think about the impact of COVID-19 and the current restrictions upon your charity’s own service users or other beneficiaries. In which of the following ways, if any, have you seen COVID-19 and the current restrictions negatively impact on your charity’s beneficiaries or service users? Base: All (1,966)

Impact on users / beneficiaries	%
Increased loneliness and isolation	47%
Higher levels of anxiety about the future	43%
Worsened mental health and wellbeing	39%
Worsened physical health and wellbeing	29%
Increased financial hardship and vulnerability	27%
Not applicable	24%
Increased unemployment redundancy or lack of work	16%
Decreased food security	15%
Safeguarding issues	14%
Increased housing issues and/or homelessness	9%
None of these	9%
Negative impact on equality and human rights	8%
Increased fuel poverty	6%
Something else	5%

Actions taken

Charities have actively countered the impact of Covid-19 where possible, including changing service delivery and using financial reserves.

A significant proportion of charities changed their service delivery and adapted their approach to finances due to Covid-19

Q. In which of the following ways, if any, has your charity responded to the challenges presented by COVID-19 and the restrictions? Base: All affected (1,787)

None of these	11%
Something else	8%

Staffing / Governance (52%)	%
Made or started the process of making one or more members of staff redundant	4%
Accessed the new Government Job Support Scheme	5%
Recruited new members of staff	8%
Recruited/sourced/trained more volunteers	8%
Furloughed staff	18%
Supported staff and their wellbeing	26%
Reduced or ceased use of volunteers	28%

Service / Delivery (80%)	%
Closed or are closing permanently	1%
Merged or are merging with other charities	1%
Operated longer hours to meet demand	6%
Signposting/sharing information	14%
Changed the support provided to a different type or operating model	23%
Stopped operating temporarily	32%
Adapted current service to meet beneficiaries’ and/or communities’ needs	34%
Adapted current services to respond restrictions	45%

Financial (64%)	%
Applied for a payment holiday on loans	2%
Reduced staff hours or pay	10%
Approached our existing funders for additional finance	11%
Developed new funding streams	15%
Applied for additional or emergency funding	26%
Used financial reserves	40%

Covid-19 & resulting restrictions have forced charities to reduce efforts in generating cash donations and organising in-person events

Q. Thinking about the following methods of fundraising, has your charity increased or decreased its efforts to generate income in this way, since March 2020? Base: All (1,966). NB Not showing data labels <2%

Fundraising events	Stopped completely	Decreased	Stayed the same	Increased	Not applicable
In-person events	35%	15%	4%		66%
Lottery and raffles	14%	7%	6%	3%	59%
Cash donations	12%	27%	17%	7%	37%
Online fundraisers	12%	8%	5%	5%	85%
Sale of goods	10%	11%	5%	3%	70%
Street collections	6%	2%			71%
Online fundraising platforms	4%	6%	13%	11%	70%
Mobile contactless donations	3%	2%	4%	5%	90%
Door-to-door collections of money	3%				95%
Direct debits donations	2%	8%	22%	9%	45%
Text giving	2%	2%	4%	2%	95%
Door-to-door collections of goods	2%				91%

There have been some beneficial results from positive actions taken, including better use of digital technology. Many cite this as a key lesson learnt as a result of Covid-19.

There have been some beneficial impacts of changes caused by the pandemic, most notably improved use of digital technology

Q2d. In which of the following ways, if any, has your charity benefitted from positive changes you have made since the start of the pandemic? Base: All (1,966)

Beneficial impacts of changes	%
Improved use of digital technology among staff/volunteers	49%
Improved use of digital technology among beneficiaries	29%
None	26%
Better communication between charity trustees	18%
Increased recognition of our work in the community	17%
Developing better ways to meet beneficiaries’ needs	15%
A stronger connection with local community	14%
Stronger working relationships with other local charities, voluntary organisations or businesses	12%
Better engagement with local council/national government	10%
Increased collaboration internally and/or with stakeholders	10%
Structural changes within my organisation	7%
Increase in income for delivery of specific pieces of work	7%
Greater volunteer engagement	6%
Something else	4%
Don’t know	1%

Lessons learnt from the pandemic

Q. Please use this box to tell us about what lessons you have taken from the pandemic or what areas you feel need to address to enable your charity to thrive. We will share it anonymously with charity sector support bodies, and other relevant Government Departments.

Increased use of digital technology

The pandemic forced us to use Zoom for meetings, and it will continue to use it for some meetings. It is a new positive way to engage our wider membership. But at the expense of older people unfamiliar with smartphones etc.

It has also made us think about future methods of fundraising, we had some success with ‘Just-Giving’ and are currently looking at Text Donation.

• the most prevalent lesson that many charities highlight as a result of the pandemic is use of technology- many were forced to increase their use of online platforms such as Zoom due to restrictions, conducting much of their work with trustees, staff and beneficiaries remotely
• indeed, many expect to continue to use technology more so than they did pre-pandemic, for example, holding events and fundraisers online

Access to financial support

The only thing that saved our viability to be able to sit it out was being eligible for a government grant for small businesses in receipt of rate relief.

Our services have been really well received from both service users and other organisations. However, we are a very small team, and a lot of our time is spent on raising money. If our services are so valuable, why aren’t they backed in the long term by council/government funding?

• many charities have experienced significant financial difficulties during the pandemic
• some feel the pandemic has highlighted the importance of securing external funding and grants to ensure a charity’s long-term success

Government support & advice

More information is required on operational requirements, what, who and when normal activities could be resumed. Rules were made so unclear and vague by Government and official guidelines.

A more nuanced approach to the very many small charities that have simple needs and sets of activities would be welcome.

• government support and advice was critical to charities during the pandemic, given the changing restrictions dictated many aspects of their operation
• many however found Government guidance difficult to understand or action

Inability to deliver services

We are a simple small family charity holding events using volunteers to raise money which we grant to those in most need. During the pandemic we have simply stopped holding events until the crises passes. This means we are not fully operational and currently only signpost. We have no employed staff.

• ongoing restrictions mean that many charities are unable to deliver their usual charitable activities
• many remain cautious as to how to proceed

Use of furlough and redundancies has typically applied to less than 25% of staff.

Most charities have made limited redundancies. Use of the furlough scheme is mixed

Q. Thinking about the Government furlough scheme. What proportion of the staff at your charity experienced furloughing at some point during this time? Base: All who have used furlough (316)

Use of furlough scheme	%
Over 75%	43%
Between 51-75%	10%
Between 26-50%	20%
Less than 25%	25%
Don’t know	2%

Q. Thinking about the period from April 2020 to March 2021, what proportion of the staff at your charity have been made redundant due to COVID-19 and the restrictions either directly or indirectly? Base: All (1,966)

Redundancies	%
Less than 25%	72%
Between 26-50%	14%
Over 75%	14%

91% of charities do not plan to make any staff redundant in the next twelve months

Q. In the next 12 months, do you expect any of your charity’s current staff to be made redundant due to COVID-19 and the restrictions either directly or indirectly? Base: 1,953

Planned redundancies	%
Yes	1%
No	91%
Prefer not to say	1%
Don’t know	7%

Q. What proportion of your charity’s current staff do you anticipate may be made redundant due to COVID-19 and the restrictions either directly or indirectly over the next year? Base: All planning to make redundancies (18)* NB Very Low Base size

Proportion of staff who may be made redundant	%
Less than 25%	73%
Between 26-50%	12%
Between 51-75%	6%
Over 75%	2%

Future outlook

Concerns around future viability remain. A third expect to generate less income from donations and fundraising in 2022.

A significant minority expect to generate less revenue from donations and fundraising in 2022

Q. Thinking forward to 2022, what impact do you think COVID-19 will have on the revenue you expect your charity to raise? Base: All excluding charities no longer viable (1,953)

Impact on your expected revenue	Significant decrease	Slight decrease	No difference	Slight increase	Significant increase	Don’t know / cannot predict
Donations and fundraising	12%	22%	30%	17%	4%	16%
Trading income	9%	16%	34%	10%	3%	27%
Grants and government funding	10%	8%	47%	8%	3%	25%
Contracts	4%	6%	50%	4%	1%	35%

A majority anticipate some threat to their financial viability in the next twelve months

Q5a. How would you rate the threat that COVID-19 poses to your charity’s financial viability? Base: All excluding charities no longer viable (1,953)

Threat COVID-19 poses to your financial viability	No threat	A small threat	A modest threat	A large threat	A critical threat	Sum threat
Three months	52%	24%	16%	6%	2%	48%
Six months	47%	29%	18%	6%		53%
Twelve months	38%	33%	20%	7%	1%	62%

Over half believe that they will either be in the same or a stronger position over the next year, but some short-term concern remains

Q5b. Thinking about your charity’s ability to do its work, which of the following best represents the position you feel your charity will be in the next…? Base: 1,953

Timescale	Stronger position than in January 2020	Same position as in January 2020	Weaker position than in January 2020	Unable to do the work
Three months	19%	50%	31%	3%
Six months	20%	50%	28%	2%
Twelve months	26%	51%	21%	2%

Charities primarily want help accessing and understanding financial support available to them.

Financial advice would help half of charities. Some have already benefited from Local Authority or Government funding

Q. Which, if any, of the following would help, or are already helping, your charity respond to the challenges presented by COVID-19 and the lockdown measures more generally. Base: 1,787. NB Not showing data labels <1%

Funding / assistance	Has helped	Would help	Neither
Local authority funding	20%	36%	49%
UK Government funding	14%	36%	54%
Job Retention Scheme (furloughing)	14%	7%	81%
More guidance on how charities should continue during the pandemic	11%	40%	51%
Information and advice on the financial support charities can claim	10%	50%	43%
Independent grant funding	10%	41%	52%
Flexibility in filing or reporting deadlines	9%	29%	64%
Technical support and training for working remotely	7%	22%	72%
Staff, charity trustee and volunteer wellbeing resources	5%	31%	64%
Simplified requirements for reporting on grants or outcomes	4%	37%	60%
Funding for digital delivery	4%	26%	71%
Funding for essential or core costs	4%	25%	72%
Support or training on volunteer issues	4%	24%	73%
Other sector specific support	4%	22%	75%
Maintaining momentum on current policy and government business unrelated to COVID-19	4%	22%	75%
More flexibility in currently funded projects	3%	29%	68%
Longer grants/contracts	3%	24%	74%
Support or training on staffing issues	3%	16%	81%
National Emergencies Trust funding	3%	16%	82%
Support or training on remote leadership	2%	20%	78%
Information and advice on returning fees/donations	1%	15%	84%
British Business Bank business interruption loans	1%	3%	96%

Support needed

Q. In your view, what should the Charity Commission and charity sector support organisations be doing to help your charity overcome the challenges that it faces because of the pandemic? Are there any other factors that you wish to bring to our attention?

Financial support

Better signposting to funding. More guidance on the balance between digital and paper records requirements.

Ensure that ongoing funding is still available going forward and that it does not dry up when things settle back to a more normal state.

A number of charities must still need some financial support, particularly small, locally focussed, rural charities. This should be provided, but must be targeted and monitored in some instances.

Alerting charities to the financial support they can draw upon; sharing best practice on wellbeing.

An overview of what grants are available, where to apply for funding.

• many would like the Commission to assist charities with finding and accessing grants e.g. by compiling a database
• others call more broadly for charities to be better supported financially, particularly by the Government

Advice & guidance

More support from the Charity commission rather than ‘your board must decide’ feedback.

Guidance on a business plan to ensure maintenance of adequate resources to meet contingencies.

We largely had to interpret Government guidance ourselves. Perhaps training for volunteers for future adverse events.

The Charity Commission should be doing more to assure us that they will not seek to censure us or close us down, due to the pandemic making it difficult or impossible for us to operate within the Terms of our Constitution.

• many charities would like the Charity Commission to continue to provide advice and guidance
• noted areas include advice on alternative fundraisers, understanding government policy, assistance with developing contingency plans for possible future lockdowns
• some feel the Charity Commission should be more flexible with rules and regulations given the exceptional impact of the pandemic
• others do not appear to be familiar with Charity Commission guidance, and request help with matters relating to the day-to-day running of their charities