Log In

Reset Password
BERMUDA | RSS PODCAST

Charities facing severe financial pressure

Elaine Butterfield

Bermuda’s charities are under “unprecedented” financial pressure and some will not survive, according to the head of an umbrella organisation for the third sector.

Elaine Butterfield, executive director of the Centre on Philanthropy, told The Royal Gazette that a recent survey of the centre’s 200-plus members revealed that 65 per cent were experiencing an increase in demand for their services and the same number were having difficulty providing ongoing operations.

She said charities were receiving less in grants from the government, and an exodus of companies from Bermuda meant there was less to go around in corporate donations.

“The current economic situation is having a ripple effect in our community,” she said. “As services are cut, non-profits have to provide increased support to those in need.

“But without the financial support as a result of budget cuts across the board, coupled with the recent mergers [of companies] — this more than likely translates to a decrease in donor dollars — and the escalation in the social needs of our population, we must look at things differently if we hope to survive as a country. Our non-profits are under unprecedented pressure and some will not survive.

“Some non-profits are facing literally closing down because of the economy, with less staff doing more work for less pay.”

She said a number of charities had already downsized owing to lack of funding, making it even harder to meet the increased demand for their services.

Some are being advised by the Centre on how to consolidate or merge their services because of the current economic situation.

The Centre continues to put a high priority on monthly workshops and training sessions.

A threshold of 600 total participants was surpassed in April of this year, reaching 760 by June, when the organisation also went beyond its goal of 40 total training sessions.

Aside from boosting overall training, the initiative is aimed at developing partnerships and collaboration in the third sector.

Its online volunteer resource, volunteer.bm, met its goals for the 2014 fiscal year, ending June 30: it grew the number of visitors to the site by 18 per cent over the 2013 fiscal year, got 526 volunteers signed up and brought in five new non-profit profiled on the site.

Half the participants ranked the site as “good”. Volunteer.bm was used a few times a week by 21.4 per cent of participants, 44 per cent of whom contributed one to five hours each month to charity.

Earlier this year, the Centre also commissioned Global Research and Strategy Group to survey the employment structure of 55 registered charities.

Among them, the charities supported 356 full-time staff, 113 part-time and 1,350 volunteers. On average, each had nine paid members of staff.

Charity staff tend to have a higher education: 44 out of 52 had an employee with a college or university degree or higher.

At least three quarters of the workforce was Bermudian for 94 per cent of survey participants.

Salaries increases were found to be on the decline: 31 participants had no increase this year, compared with 29 in 2013.

Only one charity offered a bonus or incentive plan for non-professionals, offering 1 per cent to 5 per cent. The plan had been cut in the past year.

Out of the survey pool, 21 per cent were primarily focused on arts, culture and the humanities; 19 per cent on education, and 19 per cent on health.