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What happens to charities in a downturn? June 2008 …

Tags: charities, charity, downturn, e mail, economy, financial histories, gdp, gdp growth, jonathan, jonathan baker, methodology,
Pages: 6
Language: english
Created: Fri Jul 11 15:05:47 2008
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    What happens to charities in a downturn?


    June 2008



    Telephone: (020) 7415 7196
    e-mail: jonathan.baker@nfpsynergy.net
    Web: www.nfpsynergy.net


© nfpSynergy
      Our sample and methodology

       · Sample of 56 of the largest voluntary income charities
       · Analysis of 25-year financial histories, to look at how
         charities are affected by the economy

       Asking the questions:
       · What might happen in a downturn?
       · When charities might be affected?
       · How they might be affected?




© nfpSynergy                         2
            GDP growth effect on Total income has a
            17 month delay
                                                    Total Income Growth ­
                   27.00                            Average Charity
                                                    GDP Growth
                   22.00
      Growth (%)




                   17.00

                   12.00

                    7.00

                    2.00

                   -3.00
                        89

                        91



                        95




                        03

                        05
                        81

                        83

                        85

                       87




                        93



                        97

                        99

                        01




                        07
                     19




                     19

                     19



                     19

                     19




                     20

                     20

                     20
                     19

                     19

                     19




                     19




                     19

                     20
                                             Year

Source: ONS/ Charity Trends/nfpSynergy

© nfpSynergy                             3
        GDP growth effect on Voluntary income
        has a 10 month delay
                                             Voluntary Income Growth ­

                      27                     Average Charity
                                             GDP Growth
                      22
         Growth (%)




                      17

                      12


                      7

                      2


                      -3
                        91




                        03
                        81

                        83

                        85

                        87

                        89



                        93

                        95

                        97

                        99

                        01



                        05

                        07
                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      19

                      20

                      20

                      20

                      20
Source: ONS/ Charity Trends/nfpSynergy   Year
© nfpSynergy                             4
        Disposable income effect on Voluntary
        income is almost immediate
                      30                                                  Voluntary Income Growth ­
                                                                          Average Charity
                      25
                                                                          DI per Head Growth

                      20
         Growth (%)




                      15


                      10


                          5


                      -
                           81




                                          85

                                                87




                                                            91




                                                                           95




                                                                                             01




                                                                                                         05
                                 83




                                                      89




                                                                     93




                                                                                 97

                                                                                       99




                                                                                                   03
                          19




                                         19

                                               19




                                                           19




                                                                          19




                                                                                            20




                                                                                                        20
                                19




                                                     19




                                                                 19




                                                                                19

                                                                                      19




                                                                                                  20
                                                                      Year

Source: ONS/ Charity Trends/nfpSynergy

© nfpSynergy                                                     5
  2-6 Tenter Ground, Spitalfields, London, E1 7NH, UK
  Telephone: (020) 7426 8888 Fax: 0207 377 2116
  email: jonathan.baker@nfpsynergy.net




© nfpSynergy                              6