Small charities (less than £1m a year income) are having a difficult time, particularly those at the lower income levels. Falling revenue and rising costs means many are becoming even more financially fragile. Taken together with the onerous regulatory regime of charity law and, if the charity is a limited company; company law, is it any wonder trustees/directors retire from the unending battle to keep their charities afloat.
Employment costs are increasing, prices are rising across the board: all outside the control of charities. Income levels are falling, either through lack of donations from individuals and companies, reductions in grants from charitable trusts, or through cutbacks in contracts for services commissioned by central and local government and statutory agencies.
This week Mental Health Resource (MHR), a charity and limited company based in Tunbridge Wells, announced that after 32 years of providing services it is closing in January 2026 citing financial fragility as the cause.
I declare an interest. I was a director of MHR between 2003-2012, invited to join as I was chairman of Tunbridge Wells Churches' Social Responsibility group. The charity owns The Hub, a building housing the charity's offices, a kitchen/cafe/lounge area, a craft area and meeting area. The charity has a garden. MHR has an outreach service in locations outside Tunbridge Wells offering a safe environment for clients to meet. An advocacy service provides support for patients in NHS facilities, there are programmes for young people and courses for employers on how to handle matters regarding employees with mental health issues.
Overall MHR is playing a significant role in the health and wellbeing of vulnerable individuals. The expertise within MHR is to be jettisoned - at cost to the clients, to the wider community and to statutory bodies. Clients are to lose a lifeline, and it is probable that statutory bodies will have to intervene and that will cost a lot more to address than the services provided by MHR.
Sadly what is happening to MHR is not an isolated instance of the problems facing well run charities. Foodbanks are closing, community facilities closed, services reduced. For many individuals there is a substantial deterioration in quality of life. How can we as a purportedly caring society allow this to happen?
There are serious political issues on the allocation of resources to consider, but where is the pressure demanding change to come from? Faith organisations themselves have invested heavily in providing services to communities but they need to do more to demand of government systemic change to a rotten system facilitating social injustice.
At the micro level faith groups should be looking to assist local charities, providing accommodation, administrative support etc as well as entering into collaborative arrangements to raise funds. The alternative is hand-wringing, shrugging of shoulders and sympathetic sighs.
Individuals are being damaged. It is a disgrace and a tragedy.
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