9th January 2025 • The HERALD • Page 55 v SUPPORT YOUR LOCAL SPECIALISTS v ASK A PROFESSIONAL Proactive Steps for Protection for Local Charities in 2025 Advice from Ansvar Insurance According to research from the Charity Commission, only 47% of individuals donated money, goods, or raised funds for charity in 2023 – a decline from 62% in 2020[1]. This downward trend, coupled with a higher demand for services and a surge in operating costs, has the potential to place signi cant strain on many Hampshire charities. Ansvar Insurance, the expert provider of insurance for the charity, not-for-profit, faith and care sectors, has identi ed the ve risks charities are expected to face in 2025, and is providing expert advice on how organisations can protect themselves. Adam Tier, Head of Underwriting at Ansvar, commented: “In 2025, charities will have to deal with rising operational costs, growing service demand, and monetary donations continuing to be affected by the cost-ofliving crisis. The impact on the sector has been significant, particularly for smaller, local charities, where resources are already stretched.” 1. Financial instability: Charities are struggling with declining donations and rising costs, including increased utility bills and the upcoming living wage increase to £12.21 per hour. To maintain nancial sustainability, charities must prioritise nancial planning and seek alternative funding sources like corporate partnerships and grants. 2. Increased demand for services: Whether it is foodbanks, hospices or mental health support, charities across Hampshire are on the front line. While government funding for social care and healthcare is expected to help, local impact will take time. Strategic partnerships with local authorities and other charities are key to managing demand e ectively. 3. Declining income from donations: Changes in Inheritance Tax and Capital Gains Tax in the recent budget may encourage legacy giving. Therefore, charities should invest in donor engagement strategies to address the ongoing decline in donations, as noted by the Charity Commission. 4. Cybersecurity threats: Cybercrime is on the rise in the charity sector, with a third of charities that responded to the Government’s Cyber Security Breaches Survey 2024[2] reporting they have fallen victim to an attack. Charities need to implement strong cybersecurity measures, educate sta on safe online practices and ensure they have insurance coverage speci c to the charity sector that addresses cyber threats. 5. Regulatory and compliance risks: The government has announced that new charity tax regulations will come into e ect in April 2026, which is in addition to the Data Protection and Digital Information Bill (DPDI) which may impact data protection, fundraising, and safeguarding. Ansvar urges charities to regularly review compliance strategies to avoid nancial and reputational risks from regulatory breaches. Adam adds: “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. 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 is part of the Benefact Group, a charity-owned specialist financial services organisation. e Benefact Group is the UK’s third-largest corporate donor, underscoring Ansvar’s dedication to supporting the wider charitable community. [1] www.gov.uk/ government/news/ public-trust-in-charitiesat-ten-year-high-newresearch-shows [2] www.gov.uk/ government/statistics/ cyber-securitybreaches-survey-2024/ cyber-security-breachessurvey-2024
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