Local charities struggling to cope with credit crunch

Nov 25 2008 by Laura Davis, Liverpool Daily Post

Eight out of 10 charities expect to see donations fall due to the credit crunch. Laura Davis investigates

THE air is perfumed with a subtle blend of disinfectant and wet dog hair – it’s raining outside and the waiting room is providing solace of more than one sort.

As their pets dry out, the owners wait in line to arrange healthcare they would not otherwise be able to afford.

This is veterinary charity PDSA’s Kirkdale hospital, a brand new facility opened in September to cope with the increasing demand for its services.

Its medical staff see up to 160 animals a day, carrying out 12-16 surgical procedures. Without this and the charity’s other Liverpool hospital, in Huyton, thousands of families would be faced with the difficult decision of whether they have enough money to help their sick pet.

“Because pets very often get sick when you’re not expecting it, whether or not to get them treated can become a financial decision,” explains senior veterinary surgeon Stephen McArdle.

“If people feel they can’t afford to pay for treatment, then they sometimes put it off so some animals do not get to the vets as soon as they should do and are seen at a later stage of the disease.

“If animals have been involved in a road traffic accident and have serious injuries, it can result in more of them being put to sleep.”

Since the beginning of the year, the two PDSA hospitals have seen a 5% increase in the number of animals treated and are anticipating demand will continue to rise during the current recession as more families become eligible for help.

More than one in three Liverpool households are entitled to have their pets treated by the charity – those that receive housing or council tax benefit and live within a designated postcode catchment area.

“Our expectation is that the number of households eligible will increase because of people losing their jobs and there are also people who were already eligible but who don’t like the idea of handouts,” says Stephen.

“As they feel the pinch, they may start to ask for our help.”

With six consulting rooms, a digital X-ray room, separate feline, canine and small furry animal recovery wards and a ward for infectious diseases, the new £1.5m hospital, which replaced an outdated centre in Everton, is well-equipped to deal with the demand.

However, as it largely relies upon donations and charity shop sales to fund its work, the PDSA could find itself among the eight out of 10 charities who expect to see a fall in income due to the credit crunch.

One third have already suffered a fall in individual donations, according to a report by the Charities Aid Foundation.

What is making the situation even more difficult is that costs are rising – 70% of charity chief executives said inflationary rises had made it more expensive to run their organisations (although there has been a 1.5% drop in interest rates since the survey was carried out).

Just over three-quarters of charities questioned said they had increased their fundraising activities to boost income, while 63% had started widening their applications for grants.

The sad reality of the current situation is that these funding problems arise at a time when charities are finding their services more in demand.

The Charities Aid Foundation report found that 72% of organisations had already seen an increase in requests for help.

“It’s something that we’ve really seen over the last few months,” admits Neil Preston, regional fundraising manager for Newlife Foundation, which provides disabled children with specialist equipment.

“We’ve had a 400% increase in the number of calls we’re getting on our helpline. People are much more squeezed and can’t afford the smaller items they would usually be able to fund themselves.

“Some children don’t have the equipment that they need and that can make their condition a lot worse.

“They may be in a lot of pain because of it. Either the child has to go without essential pieces of equipment, or the family has to find the money itself because they can’t get any support from statutory services,” explains Neil.

“We give anything from £50 for communication aids for children with learning disabilities to £20,000 for powered wheelchairs.”

Disabled children are emerging as some of the worst-hit victims of the recession, according to Newlife. Rising fuel costs make trips to hospital or distant special schools more expensive, and their families may also have to pay for special diets, continence supplies and increased household bills as immobile and sick children need more heating.

Many of these families are already struggling to cope as their income stands at just £15,270 – 24% below the UK average.

In the past three years, Newlife has spent £34,000 on helping 33 children in the Liverpool area, but is expecting this figure to increase over the coming months. Applicants are not means-tested, but have their claims verified by a healthcare professional.

Equipment is delivered within six weeks – often within a 24-hour period.

“We are very aware of the increase of demand and we want to make sure that we’re not having to turn anyone away,” says Neil. “A lot of the families that approach us have a poor statutory rating and they take out loans at extremely high interest rates.

“We find that quite often a family is still paying off the loan or credit card long after the child has died.”

As well as embarking on a nationwide campaign to raise awareness of its services, Newlife has begun traditional fundraising projects to supplement its current source of income.

Until now, the charity has relied upon sales from a retail outlet, near Birmingham, which sells end-of-line stock donated by major high street retailers.

“With the increased demand for our children and family grants scheme, we know that there are going to be more and more families approaching us. The reason why we’ve started proactively fundraising is to make sure we can keep up with that demand,” says Neil.

“It’s a very difficult time now and I think a lot of charities are finding this. At the very time when charities are needed, that is the time that charities are finding it hard to meet that demand.”

FURTHER details on the above charities can be found on their websites: www.pdsa.org.uk and www.newlifecharity.co.uk

lauradavis