Charity losses revealed…

Third sector umbrella bodies NCVO, Acevo, the Charities Aid Foundation, the Charity Finance Directors’ Group and the Charity Commission, have this week released figures they gathered in their September survey detailing charity losses in the Icelandic bank collapse.

 

The survey results, released following a consultation with government ministers, suggest that charities have lost between £86.6 and £200 million in the recent Icelandic banking troubles.

 

Sector representatives present at the consultation urged the government to act quickly and suggested the implementation of a loan guarantee scheme for charities that have lost money.

 

Source: Acevo

Third Sector bodies keep losses secret

Following their meeting with third sector minister Kevin Brennan this week, chief executives from umbrella bodies NCVO, Acevo, the Charity Finance Director’s Group and the Charities Aid Foundation have announced they will not make public the figures they have gathered in relation to the amount of charity money lost in the Icelandic bank collapse.

 

Ralph Michell, Acevo’s policy advocate, yesterday commented that the meeting with Government had been “constructive” and revealed it is hoped that the third sector minister will, “come back with an answer in the near future”.

 

Source: Third Sector

Local authorities warned not to shut down voluntary sector spending

In the uncertain wake of the Icelandic bank collapse, chief executive body Acevo and community sector partnership Community Alliance, are urging all local authorities to resist the temptation to ‘squeeze’ their spending on the voluntary sector.

 

Fearful of a knee-jerk reaction to the current economic crisis which could see local authorities cut back on their grants to the voluntary sector and slash their contracts with third sector organisations, Acevo chief executive, Stephen Bubb, has warned any cuts now could spell disaster.

 

He went on to suggest that instead of making small charities and voluntary and community groups the next victims of the economic crisis, local authorities need to recognise that it is now that the services of third sector organisations are needed the most.

 

Source: Acevo

17.10.08 (1)

Reassurance for smaller charities caught in credit crunch crisis…

 

Speaking on behalf of Gordon Brown at Prime Minister’s Questions yesterday, Harriet Harmon, Leader of the House of Commons, reassured small charities that any funds they have deposited in Icelandic banks are safe.  According to Harmon, small charities would receive the same protection as individuals, with any assets up to the value of £50,000 being protected against loss.

 

This confirmation comes at the end of a turbulent week for the voluntary and charity sectors.  Voluntary groups and charitable organisations have reacted with frustration and disappointment at the government’s apparent lack of concern for them and spoken out about the “serious threat” of the credit crunch on their existence.

 

Harmon went on to add that work was also being carried out on behalf of larger charities.  It is hoped that a cash injection of £100 million and the freezing of Icelandic bank assets will safeguard any deposits belonging to larger charitable organisations.

 

Read the latest guidance from the Charity Commission on this matter here:

 

http://www.charity-commission.gov.uk/news/ice.asp

 

Source: Charity Commission

15.10.08 (2)

Government blanks Third Sector as credit crunch escalates…

 

Third sector groups have reacted with anger and disappointment this week after Chancellor Alistair Darling failed to respond to pleas to ensure the charity and voluntary sectors receive the same protection as local authorities and individuals during the current economic crisis.

 

In particular, the charity sector is calling for all deposits of charity money to be fully guaranteed in the wake of the Icelandic bank collapse – currently around £230 million belonging to nearly a hundred UK charities is at risk of being lost.  According to Charities Aid Foundation chief executive, John Low, refusing to do this could have “catastrophic” effects.

 

Source: Charities Aid Foundation