Macmillan Cancer Support, a well-known and large charity in Britain, is considering cutting 150 jobs, which amounts to about one in every 14 employees. The charity claims that due to a growing number of individuals living with cancer, it is becoming more challenging to generate funds to meet the increasing demand for their assistance.
The organization, crucial in supporting the local National Health Service, allocates a budget of £250 million annually towards supporting 11,000 expert cancer nurses and care professionals. They also offer financial, practical, and emotional aid and guidance to the community, distributing thousands of £200 grants to patients who require assistance with energy and travel expenses.
Macmillan has become an integral part of the UK’s voluntary landscape and has a long history of successful fundraising. Each year, it raises over £200m from legacies and the enthusiastic participation of thousands in a variety of events including marathons, hikes, bike rides, and its famous coffee mornings.
However, the organization’s significant dependence on fundraising through charitable donations has been highlighted due to a sharp increase in inflation and an overwhelming need for guidance and assistance from a growing population seeking aid in managing the financial and emotional effects of being diagnosed with cancer and enduring lengthy wait times for treatment through the National Health Service.
The statement indicated that, similar to other organizations, Macmillan has been affected by a challenging financial climate. Raising funds has become increasingly difficult, and inflation has resulted in higher costs for the same actions that were previously taken a few years ago. To address these challenges, we are implementing changes in order to increase our impact for cancer patients without solely relying on raising additional funds.
“We have had to make the tough choice of downsizing our organization, resulting in the unfortunate need to let go of some of our valued colleagues. Despite the difficulty of these decisions, we are also creating a new strategy to ensure Macmillan is well-equipped to continue providing crucial support for those affected by cancer, both presently and in the years to come.”
A representative from Macmillan stated that they have made efforts to lessen the effects of the budget reductions on individuals with cancer. Although the job cuts affect the entire organization, they will not affect employees who offer guidance and assistance to the general public. The majority of the healthcare professionals funded by Macmillan are employed by the National Health Service.
This unexpected development has surprised organizations within the non-profit sector. While larger charities have managed to withstand the financial strains of the current cost of living, smaller entities often struggle with donor fatigue and reduced funding from local governments. According to one analyst, this is an unexpected twist as most major charities have been increasing their workforce.
A representative from Macmillan expressed concern about the negative impact of recent budget cuts on the organization and questioned the management’s focus on their main responsibility of fundraising. The individual also mentioned the unfortunate consequence of potential job loss for excellent employees and described the overall atmosphere as unpleasant.
The job losses come three years after Macmillan Cancer Support culled 300 jobs during the pandemic, as it prepared to lose tens of millions of pounds in income as a result of the lockdown cancellation of thousands of fundraising events.
Despite an increase in fundraising revenue following the lifting of Covid restrictions, the charity still experiences ongoing financial difficulties. Over the past five years, it has spent more money on expenses than it has received in donations, and has regularly relied on depleting financial reserves to offset expenses and meet the growing demand for its services.
In October, the charity’s most recent financial records for the period ending on December 31, 2022 revealed a decrease in income from £231 million to £227 million. This decline can be attributed to a decrease in donations due to the increase in living expenses, affecting the generosity of donors. Meanwhile, there was an increase in expenditures for staff, administrative costs, grants, and services, reaching £252 million.
Of Macmillan’s income, 97% comes via fundraising and legacies. It raised £204m this way in 2022, down £6m year-on-year, and lower than pre-Covid levels. Fundraising is understood to have flatlined over the past year.
For the past 11 years, Macmillan Cancer Support has consistently ranked first in YouGov’s yearly charity ratings, which gauges which charities the general public is most inclined to donate to. This puts them ahead of well-known organizations like Cancer Research UK and the British Heart Foundation.
The charity’s chief executive, Gemma Peters, who joined just over a year ago, has described Macmillan’s culture as “quite clunky, siloed and a bit too hierarchical”. She last year launched a major strategy review to re-examine its role, structure and priorities, including its heavy reliance on charity fundraising.
The CEO of the National Council for Voluntary Organisations, Sarah Vibert, stated that charities are dealing with a combination of three challenges: an overwhelming demand for their services, a decrease in income, and an increase in operational expenses. These issues are not expected to improve in the near future.
Source: theguardian.com
