The coming year introduces new challenges and risks for the Charitable and Foundation Sector. The negative economic fallout from the Global Health Pandemic, coupled with other global events such as the War in Ukraine, is now beginning to be felt. Supply chain issues for manufacturers, a tight labour market, the housing market collapse, and disruption in the global energy market has combined in a ‘perfect storm’ scenario to materially create higher inflationary pressures. Monetary policy authorities have responded with a determined policy of interest rate increases that is negatively impacting investment returns for fixed income and equities.
Without a doubt, donor behaviour will be negatively affected because of these economic factors. At the same time, the demand for charitable products and services will increase, particularly among low-income individuals and families. The demand for social goods and services will increase.
In this Report we present the top six risks facing the Charitable and Foundation Sector for 2023. In priority, these are:
- The Economy
- Pandemic Recovery