On 8th April 2020 the Chancellor announced a package of financial support for charities. Will that actually benefit the majority of charities in Norfolk and how will they access it?
The headline figure of £750 million going to charities makes it look as though all charities that are struggling with the financial repercussions of the Coronavirus will benefit. That may not be the case. As with many of the Government's announcements it lacks actual detail about what charities will need to do and how they will access these monies. The emphasis seems to be on hospices and those charities providing direct services to help the vulnerable during these very difficult times. This to include providing help for vulnerable children and assistance for those that are experiencing domestic abuse. How those particular charities will be able to access funds and for what purpose remains to be seen but what about the remainder of charities that will be struggling financially with the financial crisis arising from the Coronavirus. £750 million will not go very far across the entire country to support all of the charities that are going to be in need – and are already in need.
The Government has announced that charities will be able to take advantage of the financial support package for businesses. That is nothing new because as employers they have already taken steps in many cases to Furlough staff so as to benefit from the Staff Retention Scheme. The difficulty remains with this that despite this very welcome scheme for businesses the theory has not yet been backed up with any practical solution, i.e. no money has been paid to businesses and the process of applying has not yet been set up so that businesses can actually apply. The Government announced that this should be ready by the end of April but it is far from clear whether that will be the case or indeed when any payments will start being made. The position with self-employed people is even worse in that they are having to wait until June if indeed the arrangements are in place for their support package to result in monies being paid to them at that time.
At this time the need for charities has never been greater. Yet the pressure on charities has never been greater. Even with this new announcement it seems clear that many small and medium charities may not be in existence when we emerge from lockdown and return to whatever the "new normal" is going to be at that time. The Government is to be applauded for thinking about the charity sector and trying to provide financial support for it, but more needs to be done to support this key sector.
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*This article is provided for general information purposes only and does not constitute legal advice or other professional advice.
