Wiltshire’s charitable sector is bracing for a difficult year ahead, with escalating operational costs and an increasing demand for services putting local organisations under pressure.
In 2023, only 47% of people in the UK donated to charities, a marked decline from 62% in 2020, according to Charity Commission research. This trend, coupled with the ongoing cost-of-living crisis and a sharp rise in operational expenses, spells tough times for many charities in Wiltshire. Ansvar Insurance, an expert in protecting charities, not-for-profits, faith groups, and care organisations, has outlined five major risks charities are expected to face in 2025 and is urging them to take proactive measures.
Adam Tier, Head of Underwriting at Ansvar, explained: “Charities will be navigating significant challenges in 2025, from the impact of rising operational costs to the need to meet increased demand for their services, all while donations remain under pressure. The strain is particularly acute for smaller, local charities, where resources are already stretched.”
1. Financial Instability Charities are grappling with reduced income from donations and increased expenses, including soaring utility bills and the imminent rise of the living wage to £12.21 per hour. To counteract these financial strains, organisations should focus on robust financial planning and seek out alternative income sources, such as strategic partnerships with corporate donors and grants.
2. Increased Demand for Services Charities, including foodbanks, hospices, and mental health support services, continue to be pivotal in the community. While government funding for social care and healthcare is expected to help, its reach will take time to materialise. Strategic collaborations with local authorities and other charities are essential for managing rising service demands effectively.
3. Declining Income from Donations The recent budget’s changes in Inheritance Tax and Capital Gains Tax could incentivise legacy giving. Charities are encouraged to invest in donor engagement strategies and fundraising initiatives to address the ongoing decline in donations and ensure a steady flow of income.
4. Cybersecurity Threats With cybercrime on the rise, charities are at risk of data breaches and online attacks. According to the Government’s Cyber Security Breaches Survey 2024, one-third of charities reported falling victim to cyber incidents. To defend against these threats, charities should adopt robust cybersecurity measures, provide staff training on online safety, and secure insurance coverage tailored to the sector’s unique needs.
5. Regulatory and Compliance Risks New charity tax regulations, due to take effect in April 2026, will add to existing challenges, alongside the impact of the Data Protection and Digital Information Bill (DPDI). This legislation could affect fundraising, data protection, and safeguarding protocols. Ansvar advises charities to regularly review their compliance strategies to mitigate potential financial and reputational risks.
“It’s vital that charities take proactive steps to ensure their resilience, from reviewing their financial strategies to securing adequate insurance cover to protect against emerging risks,” Adam Tier added. “We’re committed to helping charities understand the hazards they face and take the proactive steps needed to protect themselves so they can continue making a difference in their communities.”
Ansvar Insurance’s commitment extends beyond policy provision. As part of the Benefact Group, the UK’s third-largest corporate donor, Ansvar remains dedicated to the support and growth of the charitable sector.
