Charity risk barometer 2023

01 November 2023

The charity sector faces many challenges, the financial crisis being a key factor, but it does so from a position of strength and resilience.

CHarity Risk Barometer - The age of uncertainty: how charities are managing risk in a volatile landscape

The Charity Risk Barometer is a major research-based report that aims to understand the risks the sector faces, what it can do to manage and mitigate those threats and how, as a specialist insurer, we can support the charity sector.

In July 2023, we interviewed 251 decision makers in the charity sector, representing the full spectrum of third sector organisations to help us create our Charity Risk Barometer.

The report is dominated by rising costs and a tough fundraising climate. It finds that:

  • Increased costs and reduced funding are the main threat to charity operations, at a time when the demand for services is rising.
  • Charities are worried about the consequences of reputational damage and are increasingly mindful of digital threats to data.
  • Charity leaders are concerned about the impact of extreme weather and also fear losing support if they don’t take tangible steps towards sustainability.

It’s certainly a tough outlook, but there is plenty of positivity here, too. Charities are finding creative ways to cut costs which don’t impact service provision. They might not be doing everything they want to do when it comes to sustainability, but nearly every organisation is doing something. Many have retained working practices and wellbeing provision implemented during the pandemic.

To learn more about how third sector organisations are tackling the risks facing the sector, and where organisations can get further support, read Ecclesiastical’s 2023 Charity Risk Barometer now.