Why businesses and charities should work together to lessen the effects of COVID-19
The COVID-19 pandemic has crystallised the critically important role that businesses of all sizes play – not only in local and national economies, but in society as a whole.
Many entrepreneurs and business chiefs have responded to the pandemic’s issues, such as food scarcity and isolation, with immense generosity and have in turn been rewarded with customer loyalty. The result is that many are now looking to expand their philanthropic activity and participation in the communities that manufacture, sell and buy their products and services.
Over the past year of regional and national lockdowns there has been a huge rise in demand for food parcels and a growing mental health crisis. We have also seen pre-existing issues like social isolation and digital exclusion be exacerbated by the pandemic.
Such pressures have forced local charities to adapt in a way that ensures those who need it most are still getting the help they need – this includes digitally-adapting services, extending opening times and providing alternative packages of support to their usual remit. In doing this they have shown tremendous innovation and resilience.
Unfortunately - like every other sector - charities are acutely feeling the economic impact of the pandemic. What we are hearing loud and clear from our UK-wide network of 46 community foundations, is that local charities across the UK are seeing an increased demand for the vital services they provide, coupled with dwindling resources and financial reserves. This was also confirmed in a survey by Pro Bono Economics late last year which revealed that three-quarters of charities are expecting high demand for their services in 2021.
What does this mean in practice? It means that local charities will have to cut back on the vital services they provide, and many will face the very real threat of closure. People who rely on them will find themselves staring at an empty food cupboard, going days on end without seeing a friendly face or having nowhere to turn when things get too much. What can businesses do about this? Despite facing their own obstacles, many businesses are in the enviable position to give back. So far this been a vital lifeline for so many grassroots organisations and will be an essential source of support moving forward.
Our network of community foundations work in partnership with businesses at a regional and national level to get funding to local charities that provide life-changing work in communities across the UK. Being rooted in the places we serve and with decades of grant-making experience, we ensure that our donors’ money reaches the places where it makes the biggest impact.
Looking ahead there is huge potential for more effective collaboration between businesses and local charities; collaboration that can add corporate and reputational value to businesses through the successful delivery of their environmental, social and corporate governance (ESG) objectives.
As we look beyond the COVID-19 pandemic, and with topics such as climate change continuing to rise up the agenda, it’s expected that charities will continue to engage with companies on ESG issues, highlighting the importance of businesses and charities alike aligning to these objectives. For businesses, acknowledging and working in line with these objectives is an important demonstration of the company’s values, which in turn contributes to long term sustainability and attractiveness to potential partners and investors.
The pandemic has also seen almost every aspect of our lives move to a digital format – including virtual learning for school children, a move to working from home, and an increase in online shopping habits. Our network has noticed the challenges vulnerable communities are facing in adapting to this, so it’s no surprise that the issue of digital exclusion has risen to the top of the agenda in the past 11 months.
UK Community Foundations recently received a donation of £120,000 from infrastructure operator for wireless telecommunication, Cellnex – this donation is being distributed among six community foundations, who will each receive a £20,000 grant for projects that address digital exclusion in their communities. Our network’s local expertise means that this funding will reach the charities working innovatively to bridge the digital divide.
On a national scale, another good example is The Barclays Foundation which was established by Barclays earlier last year to support vulnerable people across the UK through the pandemic.
Barclays provided a £100m Community Aid Package for charities working to support people affected by COVID-19, and supplemented its corporate contribution with a commitment to match donations made by employees. As a result, £1 million has been distributed through the community foundation network, helping to alleviate the associated social and economic hardship caused by the crisis.
Supporting community foundations during the pandemic also provides businesses with the opportunity to align with the United Nations’ Sustainable Development Goals (SDG), in turn helping them to meet ESG objectives, attract new staff and strengthen company culture. In the current climate, SDG goals number one (No Poverty), three (Good Health and Wellbeing) and ten (Reducing Inequalities) offer tangible objectives as they work to ensure protection for the most vulnerable, as well as look towards areas of society which may need extra support as we recover from the pandemic.
There is no doubt that charities and businesses have a difficult road ahead, but by working with community foundations to distribute support where it’s needed most, businesses can ensure their efforts provide a positive future beyond the current crisis.
