Latest Charity Health Check shows a broadly unchanged picture

The fifth charity health check has asked 80 charities across the country to consider whether, during the last month, conditions have improved, deteriorated or stayed the same in five key categories:

  • New business and donation income
  • Cashflow
  • Number of employees (FTE)
  • Reserves
  • Spending on front line service delivery (n=77)

Read about previous months’ results here

The score for June was 51.8 out of a maximum 100.  This is just above 50, which would suggest a marginal improvement since last month’s figure of 48.75 and higher than July’s (48), June’s (42.8) and May’s score of just 30.8. 

Because this is a ‘rolling survey’ comparing this month to last, the overall trend data shows a marked decline in May followed by conditions staying approximately constant at this new, lower level.  Therefore the small increase in score is from a very low base.

Specific results are:

New business and donations are the same for 42.5% of charities better than last month for 30% of charities surveyed

New income and donations
Better30.0%
The same42.5%
Worse27.5%
Grand Total100.0%

Cashflow – a key measure of an organisations’ health and ability to pay wages and bills – stayed the same for 41% of organisations, better for 35%

Cashflow
Better35%
The same41%
Worse24%
Grand Total100%

Full-time staff remained the same for 65% of organisations (figures include furloughed employees)

Number of Full Time Equivalent Staff
Better14%
The same65%
Worse21%
Grand Total100%

Reserves are the same for 45% – as per August and July.

Row LabelsReserves
Better28%
The same45%
Worse28%
Grand Total100%

Spending on frontline services is the same as last month for 53% of charitable organisations.

 Spending on Frontline Services ( n=69)
Better26%
The same59%
Worse14%
Grand Total100%

Detail : The surveys ask five short questions requiring short answers – better, worse, same.  The PMI score averages those scores and is calculated as:

PMI Score =

(percentage of questions that reported an improvement) +

(1/2 x percentage of answers that reported no change)

So, if 100% of the questions were answered with an improvement, the score would be 100.

If 100% of the questions were answered with no change, the score would be 50.

This means that a score above 50 is good.  A score below 50 is a deterioration. 50 means no change.

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