Recession hits charity investments

The recession has caused a substantial dip in charity investment that is affecting a number of the UK’s largest charitable bodies.

New research by Cass Business School shows charities have lost £23 million in assets during the downturn.

The UK’s biggest 500 fundraising charities saw their collective investment fund value drop by 21.4 per cent, while there was an 8.4 per cent decline in income received from charity investments.

Cancer Research UK saw the value of its assets decline from £230 million to £154 million during the 2008-09 financial year and the NSPCC’s total dipped from £281 million to £221 million.

’Many of the major service-providing charities rely on investment income to provide a cushion, or an independent source of income, against fluctuations in their income,’ explained Cathy Pharoah of Cass Business School.

Last month, the Charities Aid Foundation advised high earners to consider tax-effective charity investing following the introduction of new levies against those who are paid more than £150,000 a year.

She added a fall in charity investments makes its harder for them to plan for the future.ADNFCR-2318-ID-19736070-ADNFCR