Written evidence submitted by Stonewall

Select Committee on Culture, Media and Sport inquiry on impact of COVID-19 on the charity sector

Introduction

1. Stonewall welcomes the opportunity to respond to the Committee’s inquiry on the impact of Covid-19 on the charity sector. While we welcome the Government’s decision to announce a new fund of £750 million to support frontline services, we are concerned that the future sustainability of the sector is still at risk. Like many in the sector, we support the NCVO’s calls for further measures to help charities through this crisis.

2. As the Government begins to distribute funding in the coming weeks, we also hope to learn more about the decision-making process, including the consideration that will be given to marginalised communities and the organisations that represent them.

3. Stonewall is Britain’s largest organisation campaigning for LGBT equality. This response will focus on the needs of the lesbian, gay, bi and trans (LGBT) community and the organisations dedicated to supporting them. Evidence shows that LGBT people are at higher risk of social exclusion, poor mental health outcomes and domestic abuse; all of which may be exacerbated during the Covid-19 crisis. We also know (from the Government’s National LGBT Survey) that LGBT people are have better experiences of services when they’re supported by specialist LGBT charities. It’s vital that, at this critical time, the organisations set up to meet LGBT people’s specific needs are equipped to continue their work during and beyond this crisis.

Impact on the charity sector

4. NCVO has calculated that the charity sector could lose £4.3 billion income in 12 weeks. This figure is based on charities’ overall income, making assumptions that public fundraising, foundation income, investment income and income from the private sector are all significantly hit.

5. A recent survey from the Institute of Fundraising showed charities reporting a projected loss of 48 per cent of their voluntary income, equating to a third off their total income. 83 per cent of charities said that the most important thing for their organisation’s sustainability over the coming 3 to 6 months is access to emergency grant funding, 91 per cent said they have already or expect to have their cash flow disrupted, with 62 per cent saying this would result in them needing to reduce charitable activity.

6. While we welcome the Government’s announcement of a £750 million fund for the charity sector and the decision to match fund the BBC’s Big Night In charity appeal, alongside NCVO and the wider sector, we are calling for clarity on certain points:

• Currently, we don’t know how the Government will prioritise bids for support and how they’ll be measured. We recommend that the Government undertake Equality Impact Assessments, which are inclusive of LGBT identities, as part of the prioritisation process. This will help to ensure that due consideration is given to equalities and that the most marginalised communities are supported.
• In recognition of the impact of Covid-19 on racial inequalities, we also support Charity So White’s call for ring-fenced funding for civil society organisations representing people of colour.

7. And while this fund is a welcome start, it’s important to recognise the ongoing scale of the impact on the charity sector faces, and the need for a specific package of support. Like many organisations across the sector, Stonewall supports the NCVO’s calls for:
• A ‘stabilisation fund’ for all charities to help them stay afloat, pay staff and continue operating during the pandemic.
• Extending coronavirus business interruption loans to support charities. As it stands, these loans are only available to charities if half their income comes from trading rather than grants, investments, fundraising or other sources; this means that most won’t be able to benefit.

Impact on the LGBT community and LGBT sector

8. The LGBT Consortium’s work with the LGBT sector is already beginning to show that increasing numbers of LGBT people are seeking support from specialist organisations, and those organisations are already coming under strain.

9. Measures such as social distancing have had an immediate impact on the LGBT community. This is because LGBT people are more likely to be socially isolated and therefore may not have the same networks to rely on if they fall ill. We also know that LGBT people are at higher risk of poor mental health outcomes (which will be exacerbated by the loss of life, financial uncertainty and isolation during the pandemic) and of domestic abuse, leaving them trapped in situations with abusive partners or family members. The LGBT Foundation has produced a full briefing on the impact on LGBT communities in the UK, available here.

10. We also know that, when LGBT people need help, they are better supported when specialist services are available. The Government’s National LGBT Survey found that LGBT charities were considered the most helpful when reporting anti-LGBT incidents. This demonstrates the importance of maintaining a specialist sector, including those organisations working with people with multiple protected characteristics (for example, LGBT people of colour, older LGBT people, LGBT people of faith or LGBT people with disabilities).

11. LGBT sector organisations doesn’t have charity shops that can close. As a medium-sized charity, Stonewall has been able to use the Job Retention Scheme, but most LGBT organisations don’t have large enough teams to be able to manage while some staff take a period of temporary absence, making it difficult to benefit from the initiative while continuing to provide services. Most LGBT organisations operate on proportionally low turnover; 73 per cent of LGBT organisations operate on less than £20,000 per year. Yet collectively, the sector reaches over 5 million beneficiaries.

12. And the sector is already feeling the impact. Initial research from the LGBT Consortium’s Insight Report has found that:

• 64 per cent of LGBT sector organisations surveyed reported an immediate loss of earnings. 38 per cent have seen a reduction in donations, and many more predict future losses due to the cancellation of fundraising events and 65 per cent have seen a loss in earned income, through cancelled training events or services.
• 20 per cent are concerned that they will have to close, due to the financial impact of the pandemic.
• Many have had to take rapid measures in response to the loss of income; this includes reducing staff hours at a time of increasing need.

13. The Insight Report also found that many organisations have adapted their delivery model quickly, to continue to provide the support their service users rely on. One organisation told the LGBT Consortium:

“We are increasing our collaborative efforts among all marginalised groups who are already at a disadvantage and will now be disproportionately affected”

14. At Stonewall, we’ve also quickly adapted some of our work. This includes creating online, LGBT-inclusive teaching resources that parents can use while schools are closed, developing e-learning modules for our training services, holding online community events and continuing to run our Information Service. Alongside the rest of the LGBT sector, our priority is supporting our community.

15. Alongside our support for the NCVO’s calls for support for the voluntary sector, Stonewall also recommends that the work that the Government Equalities Office (GEO) began to ensure the sustainability of LGBT sector continues. The GEO could utilise the mechanisms developed through LGBT Futures Fund Programme to make sure that organisations can access the support that they need at this critical time.