Charities Run Out of Money — Just When They Need it Most

Recent research by the National Council for Voluntary Organisations showed cash donations to charities fell by £367m to £1.3bn in 2007-08 compared to 2006-07.

Phil Lloyd at the Dame Hannah Rogers Trust, which provides therapy and care for children with profound disabilities in Devon and Cornwall, said demand for its charitable services increased by 73 per cent over the past year, but donations had dropped by a third over the same period. "As even tougher times threaten, charities face many difficulties," he said. "Running costs have risen and falling property prices diminish the value of legacies. Add to that a reduction in not only public but corporate donations as businesses hit the reality of recession."