ARTICLE • 5 min

COVID-19 And Its Impact On Funding

COVID-19’s impact on charities around the world has not gone unnoticed. Changes to the workforce, the way services are delivered, funding and revenue have all affected a sector that is already resource constrained. This impact is exacerbated by an increased demand on services spurred on by the pandemic, particularly around mental health support, financial and domestic violence support, just to name a few. 

The Voice of Charities Facing COVID-19 Worldwide Minnesota report published in March 2020 found that of nearly 550 charities across 93 countries surveyed, more than 95 percent reported negative impacts due largely to a reduction in funding, travel restrictions and disruptions to activities. A similar Study conducted in Washington found that although charities had witnessed a 29.5 percent reduction in funding, these organizations also had to contend with an average 10 percent increase in demand for their services. Compounded to this challenge is the loss of voluntary staff and disruptions to service delivery. 

But as the countries around the world start to become adept in managing and living with the pandemic, and as public health systems and vaccination programs start to gain their stride, we are seeing a growing commitment in the philanthropic sector to support charities and vulnerable communities through the pandemic, beyond an injection of financial capital. 

In the U.S., 2020 giving budgets of private corporations have increased as a direct result of COVID-19. The Centre for Effective Philanthropy reports that a majority of funders say 2020 had pushed them to accelerate change efforts, and increase their giving towards helping charities and communities navigate COVID-19 impacts. In April 2020, Exponent Philanthropy administered a survey to more than 900 funders to learn how they are responding to COVID-19. Nearly 80 percent of funders say they had changed their funding priorities to align with challenges created by the pandemic. 

The Council on Foundations “A Call to Action: Philanthropy’s Commitment during COVID-19” pledge calls on funders to act with fierce urgency to support charities impacted by COVID-19, by committing to ease restrictions on grants, contribute towards emergency funds, supporting and uplifting the voices of charities, and investing in communities most affected. 

At Socialsuite, our goal has always been to empower charities to rapidly listen, understand, and commit to helping their communities in need. Now more important than ever, charities need to show their commitment to helping the people that they serve navigate, and recover from, the impacts of COVID-19. 

Socialsuite’s impact management platform helps organizations to engage with the communities that they serve, and evaluate if their initiatives have been successful in creating lasting impact.



Dr Clara Ong
Cofounder and Social Impact Expert @ Socialsuite
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