This new research, commissioned by Lloyds Bank Foundation for England and Wales, tests and expands the findings of the original study in the context of the pandemic. It shows that small and local charities’ distinctiveness in who they support, how they carry out their work, and the role they play in their communities makes them best placed to respond to this crisis. They reach and support disadvantaged people and communities that tend to be less well served by mainstream provision.
They 'showed up' and then 'stuck around' using their position of trust within communities experiencing complex social issues to support people when they were needed the most. This contrasts with parts of the public sector, which were slower to react early on, and informal support and mutual aid, which dissipated over time. Smaller charities addressed four main areas of need: access to food, isolation and loneliness, information, and mental health/wellbeing.
Locally rooted small charities found multiple ways to maintain human contact using the trusted relationships they already had to disseminate help and information. This was particularly critical for disadvantaged neighbourhoods, communities of faith or ethnicity, people experiencing poor mental health and people seeking asylum as their needs were less well served by mainstream provision and to whom official public health messages were not getting through, even though they were more likely to be adversely affected by impacts of COVID-19.
These charities have created social, economic and added value for their communities. They stopped lives from getting worse and prevented more people from contracting COVID-19, ultimately reducing demand on the health system at very minimal additional cost to the public purse. In the face of a severe recession, by continuing to employ local people, utilising local supply chains, and accessing pots of funding that could not have been brought into local areas by other types of providers, small charities have also added value to local economies.
They demonstrated “absorptive capacity” by ‘soaking-up’ the unprecedented impact of the crisis on their work, operations and the individuals and communities they support; and then showing tremendous “adaptive capacity” by responding rapidly and flexibly through adjustments and innovations on an ongoing basis.
Small and local charities will be central to rebuilding after the pandemic, contributing to the transformational change needed for society and the economy to fully recover and prosper. The report calls on the government, funders and the wider voluntary sector to recognise the value of small charities - providing long term, flexible, core funding and investing in social and community infrastructure.