Neighbourly

On 24 January 2024, the European Parliament announced the approval of a proposal to delay key aspects of the Corporate Sustainable Reporting Directive (CSRD) by 2 years, including the adoption of standards for companies to provide sector-specific sustainability disclosures and for sustainability reporting from companies outside of the EU.

This news was welcomed by many, as CSRD heralds a new era for businesses, compelling them to delve deeper into the social and environmental consequences of their actions. This blog explores the transformative implications of CSRD for in-scope businesses, shedding light on the enforcement mechanisms and the fundamental shift towards evaluating systemic impacts. Additionally, we examine how Neighbourly envisions the impact of CSRD on UK businesses not yet in scope, offering insights into the potential tiered landscape and the accelerated societal expectations it may bring. 

Why is CSRD, and the introduction of reporting on social impact and the impact of their business models, such a significant change for in-scope businesses?

The Corporate Sustainability Reporting Directive requires companies to report on the impact of corporate activities on the environment and society, and requires the audit (assurance) of reported information. The introduction of CSRD marks a major shift for in-scope businesses by mandating expanded reporting. The directive has also extended criteria of in-scope businesses, significantly increasing the number of companies required to report on topics like environment, social issues, governance and more. Unlike previous voluntary and fragmented sustainability reporting, it introduces EU-wide standards that aim to consolidate and provide consistency around disclosures. This common framework increases clarity and cross-organisational comparability and most importantly, shared knowledge. 

CSRD shifts focus to evaluating how companies address systemic impacts inherent in their daily activities. Double materiality is fundamental to the new rules; companies must report both on how their business is impacted by sustainability issues “outside-in” and how their activities impact society and the environment “inside-out”.

Also significant is the enforcement element - there will be enforceable repercussions, tied to bottom line, for non-compliant companies which will drive more urgent action from in-scope business leaders. 

What does Neighbourly see as being the impact of CSRD on UK businesses who are not yet in scope?

Even for UK businesses not yet subject to CSRD mandates, the regulation is likely to begin to impact operations, or the business community will become two tiered, giving CSRD qualifying businesses a competitive advantage through robust and transparent sustainability credentials. As a consequence, companies will feel heightened stakeholder pressure as investors increasingly require validated proof of social and environmental consciousness and positive impact as a factor in their decisions. We may also see smaller UK firms preemptively adopt new industry standards to gain advantage and compete.

We’ve seen a real shift in talent acquisition towards purpose-driven brands in the past decade and CSRD could also accelerate this as employees continue to prioritise responsibility in their career choices. We are likely to see more stringent supply chain commitments as large corporations obligated under CSRD establish codes of conduct on issues like human rights that trickle down to their entire business ecosystem. 

Sustainability is increasingly required for competitiveness, so a byproduct of CSRD will be accelerating societal expectations in this country, and encouraging businesses to start future-proofing.

The social requirements place a particular focus on reporting not only on workforce, workers in the value chain and end-users, but also ‘affected communities’. How might this be interpreted? How much of a shift does this represent from approaches of the past?

In the past, reporting on community considerations has tended to be limited in scope. CSRD mandates a deeper evaluation of systemic harms that business models indirectly impose on surrounding populations and environments.

To report on ‘affected communities’ companies will need to understand issues like health impacts from operational pollution/contamination, how policies affect things like inequality and human rights and where gains can be made through redistribution and circular economy practices. Leaders of in-scope companies will need to consider if their strategic choices and outputs are undermining or strengthening social support structures. 

This assessment will go beyond suppliers, customers and traditional CSR initiatives to encapsulate risks and opportunities connected with corporate activity which marks a definite departure from past practice.

Given the companies in scope are the largest businesses, with multiple sites, could these requirements encourage a more place-based, community-focused approach?

Given CSRD's strong focus on understanding impacts on local communities, we do expect that large businesses will increasingly adopt place-based sustainability strategies because of the need to tailor approaches to the individual circumstances where they operate.

Getting it right will mean localising environmental, social and governance initiatives that take on distinct forms from one site or region to another, based on unique community insights and needs, versus a centralised, broad-brush approach.

In this way, we see the potential for CSRD to act as a catalyst for large corporates to embrace community-centred models that ultimately benefit regional economic inclusion, restoration and living standards.

Is there a risk of a ‘backlash’ against the burden of this expanded reporting?

There is certainly potential for some corporate backlash and criticism related to the reporting “burden” imposed by CSRD amongst newly in-scope companies. Executives may cite cost, resourcing and even confidentiality concerns. 

However, the tide toward mandated sustainability accounting seems irreversible, so whilst expanded regulations inevitably impose some resource challenges and costs, businesses will want to view this as a strategic opportunity over the longer term. Factors including the phased timeline, consistency and standardisation of frameworks and reputational incentives should all help mitigate criticism. Proactive companies that develop rigorous impact reporting and disclosure processes will no doubt gain advantages.

How does Neighbourly’s impact reporting provide clients with the auditable data they’d need for CSRD?

As well as advisory services to help clients embed community investment and redistribution initiatives, Neighbourly offers comprehensive impact tracking and analytics that provide validated data required for CSRD disclosure across relevant areas. Importantly the platform captures individual transactions (not logged data) so it is a “data source of truth”:

Community investment metrics:

• Charitable contributions
• Volunteer hours donated
• Beneficiary numbers
• Impact themes supported
• Impact value 

Local community impacts:

• Populations served
• Social need areas addressed
• UN Sustainable Development Goal alignment

Workforce engagement:

• % participation
• Per-capita hours
• Department/team breakdowns
• Wellbeing indicators 

Environmental Impact:

• CO2 impact of surplus items redistributed

Key features like granular quantifiable metrics, customisable reports for multiple stakeholder needs, verified good cause partners, data transparency and exportability empower clients to produce robust, compliant disclosures.

Finally, any advice for businesses looking ahead to CSRD reporting, and possibly tackling social impact reporting (to this extent) for the first time?

Preparing to credibly disclose more robust details on social impacts can seem a daunting proposition for companies tackling these requirements for the first time. We’d recommend starting with laying the foundational building blocks:

• Audit the systems in place already and construct strong data gathering protocols employing digital tools to ease quantification. Leverage credible external partners and platforms where there’s opportunity to do so.
• Build cross-functional coordination around collating inputs - CSR should not be siloed
• Formalise community/stakeholder engagement mechanisms and solicit transparent feedback channels on your impacts.

Expanded social impact transparency can be viewed as an opportunity to enact purpose, accountability and resilience while meeting rising stakeholder demands. Absolute completeness from the outset matters less than showing momentum, and the path promises advantageous culture shifts and greater outcomes for people and planet.

Neighbourly has recently launched a new paper, The ‘S’ in ESG: how social responsibility is shaping the future of business. The paper will focus on the ‘social’ component of ESG and how it can be harnessed to boost brand value, encourage employee trust and remain on top of social legislation, as well as driving better business practice. 

Over four chapters covering key themes surrounding sustainability and social impact, the paper will take a closer look at what this means for your business and how you can align social goals with other business and ESG objectives. It also explores where social strategy can be applied across multiple facets of a business, whether you work in marketing, HR, operations or finance. 

The chapters include:

1. Why social impact measurement is gaining momentum
2. The changing relationship between ESG and brand value
3. Fostering inclusion and improving equity beyond the office
4. Meeting the global cost-of-living crisis with investment in local communities

This paper demonstrates how a localised strategy is not only an investment in the communities which a business cares about but also in their licence to operate, as employee and consumer expectations evolve.

You can expect to find direction on where there are opportunities to make a big impact, no matter how your organisation is currently navigating the ESG space. 

Read the full paper here.

This summer our CEO, Steve Butterworth, hosted a panel discussion with representatives from B&Q, Lidl and Gallagher looking at the ‘power of local’ and how these leading brands maximise their environmental and social impact by donating to local charities.

By connecting corporate partners with a network of over 20,000 vetted local causes, Neighbourly helps businesses to activate social purpose at a local level on a national scale.

But why is this important? And what difference does it make when businesses support smaller charities and local good causes? Here are some key takeaways from the panel discussion:

Supporting local causes increases employee engagement

Stores are located within the heart of communities which presents a unique opportunity to create impact in areas that are meaningful to employees themselves. 

Employee-led nomination schemes engage employees with corporate donation programmes whilst enabling businesses to deliver funds to those most in need. 

Local good causes understand the needs of local people

Local good causes and small charities are embedded in their communities, with a deep understanding of the needs of local people. This has become increasingly evident since the start of the pandemic as smaller organisations work on the frontline to support those most in need. 

Supporting local causes enables businesses to tangibly help and connect with their local areas.. There is also evidence to suggest that supporting local good causes creates more impact through the ‘local multiplier effect’ which builds prosperous and thriving local economies by retaining and circulating money within communities.

• You might like: What is the local multiplier effect and how can it boost ESG impact?

Corporate giving programmes should be aligned with your businesses purpose

Implementing a corporate giving programme that aligns with business values and purpose helps to strengthen the message behind the scheme, whilst delivering ESG impact. 

It is important to be really clear on what you want to achieve through corporate funding by focusing on a strategic objective linked to where help is needed in the community. The B&Q Foundation, for example, has created a giving campaign that improves community spaces and places. As a home improvement and DIY retailer, this programme makes sense for their business and keeps the focus on an area that is aligned.

Smaller grants can make a big difference to local good causes

Cash grants of varying amounts can make a huge difference to local good causes, perhaps more so than larger national charities, as they can channel funds to support beneficiaries at a much quicker rate. In this way corporate donations can have a big impact across a wide variety of impact areas and multiple causes.

“Sometimes people associate financial support with big chunky numbers [but] … we ran a very interesting programme during covid … [providing micro-grants of a few hundred pounds to keep the lights on … those low thousands or even hundreds can make a big difference and enables you to spread the love a bit further as well” - Steve Butterworth, Neighbourly CEO

In the context of the current cost of living crisis, providing financial support alongside volunteering programmes can make a big difference, helping to cover a charity’s overheads and volunteering costs.

An evident rise in social consciousness is intensifying the war for talent; transforming workforce expectations and driving an increasingly urgent need to improve employee engagement. 

Employee volunteering programmes are being used to drive this engagement - and unsurprisingly so. Saying that your business has helped 100,000 people is a powerful way to show employees the impact they’re making, in turn helping them to feel more connected to the programme.. 

The most effective volunteering programmes enable staff to better connect with their local communities, igniting a sense of satisfaction from supporting those in need. In fact, YouGov research commissioned by Neighbourly in 2021 found that employees in organisations that offer volunteering programmes are happier and more likely to trust and recommend their employer to others. 

However, recognising the link between volunteering and employee engagement is only the start.

Employee volunteering strategy

To move from planning to activating a successful volunteering programme requires a multifaceted strategy. The more that volunteering and community action are ingrained in the culture of a company, the easier they will be to execute and, in turn, foster greater employee engagement. Aligning a volunteering programme with company values will ensure it’s an integral part of your ESG plan as well as serving as evidence that the business is living its values. 

At a time where businesses are often faced with staff shortages due to the ongoing impact of covid and Brexit, it’s important to consider how you can build an inclusive volunteering programme. For example, micro-volunteering takes into consideration that time-poor employees are more likely to volunteer their skills in small, convenient chunks, allowing them the opportunity to contribute to a larger community project in a flexible way. Remote volunteering gives employees who can’t or don’t want to leave their house the chance to make a difference in a way that is comfortable and, equally as valuable.    

Companies that are particularly good at this will often include their volunteering policy in the job descriptions of all employees as well as job adverts, therefore new joiners know from day one that volunteering is important to their employer. 

Overcoming barriers to employee volunteering

One blocker to the uptake of such programmes is the sense among employees that they require permission to take time away from their main work responsibilities to volunteer. However, the more they feel their manager is behind their volunteering efforts, the more engaged they will be. 

Including these programmes within the KPIs that line managers actively and regularly check on further encourages employees to put themselves forward for volunteering opportunities. 

The KPIs used to evaluate the success of employee volunteering programmes can also influence overall success in relation to employee engagement. The most successful programmes tend to report on the number of lives they have been able to positively impact, rather than focussing on the number of employees that have taken part or the hours they have clocked. 

By focusing on human impact, rather than raw numbers, employees will feel more connected to the cause, fulfilled by their experience and thus motivated to partake in the programme repeatedly. 

The benefits of an engaging employee volunteering programme

Creating a volunteering programme that your employees care about is an effective long-term strategy that improves talent recruitment and retention over time by demonstrating that the business values are integral to the culture. This ultimately feeds into the bottom line by ensuring that employees are better connected, happier, healthier and more trusting of their employer.

If businesses want their financial donations to charities to have the desired effect for the local communities they seek to support, as well as delivering on their ESG strategy, understanding the local multiplier effect is critical.

In research published in 2003, Ward and Sacks visualised a local economy as a leaky bucket with lots of holes. These holes are typically caused by a lack of investment, infrastructure and jobs, which only get bigger as necessary improvements to improve the local economy are not made. As employment depletes and services deteriorate, more people leave, leading to a downward spiral of decline. 

This is a tale familiar to many areas that have fallen into deprivation over the years and the subject of the Government’s recent Levelling Up white paper published in February 2022. But the same principle flipped on its head also demonstrates how a local community can prosper by endeavouring to keep resources within that area.

For instance, if you spend £10 with the local greengrocer, they might put £7 in the till and spend £3 on lunch in a local cafe. The cafe owner might put £2 in the till and purchase a pint of milk from the local corner shop on the way home. While a simple representation, it shows how value can stay in the local community.

You might think you have only spent money with the greengrocer, but it has benefited the cafe owner and the family who runs the corner shop, thereby enabling all of them to continue offering their services to the community. By retaining and circulating money within our communities, we can help build prosperous, thriving economies across the country with more employment, better infrastructure and improved opportunities.

Recirculating prosperity

The local multiplier creates impact in three ways. Direct impact is spending done by a business in the local economy to operate the company, such as inventory, utilities, equipment and employee salaries. Indirect impact happens as the money local businesses spend in other local businesses recirculates. Induced impact refers to the additional consumer spending that happens as employees, business owners and others spend their income in the local economy.

The same is true for the benefit of donating to local charities with every pound donated to a local good cause potentially washing around that community multiple times before it bounces back out again. Local good causes are at the coalface of community action, made up almost entirely of workers or volunteers directly involved in frontline services. Rising social consciousness is making employees and customers increasingly adept at spotting attempts at CSR box-ticking or ‘purpose washing’, so it’s crucial that businesses are ensuring their donations are making the impacts they’re intended to make. 

Localisation is critical for the future existence of all businesses. If they don’t look after the local community around them and the health and prosperity of the environment in which their customers and employees reside, their business will be negatively impacted. Healthy local communities ultimately enable everything else to function successfully in society.

Download our full report ‘Corporate Donations: The Power of Local’ for more on the business benefits of financial donations to local good causes.

A recent survey of over 1,200 small charities and local good causes in Neighbourly’s network has highlighted a rise in demand as the biggest concern this winter. 

Whilst demand overall appears to be just over 2% higher than this time last year, with causes supporting an average of 372 people per week, it is 24% up from mid way through the first wave of the pandemic in June 2020 when the average figure was 299 per week.

Similar patterns have emerged from the Trussell Trust, the UK’s largest network of food banks, where its CEO Emma Revie recently told the Guardian: “Food banks in our network continue to see more and more people facing destitution” - after finding that their network had seen an 11% rise in winter demand when compared to the same period in 2019. 

"More families are struggling to put on decent meals for the family during the Christmas holidays"

In particular for food banks in the Neighbourly network, a huge 92% believe that this will be their busiest Christmas on record. For many of the good causes with the highest concerns around demand, the story is the same. Families struggling with the impacts of the pandemic and rising costs of living simply can’t afford the basic pleasures of Christmas that many others take for granted. 

Simple Norfolk is a charitable organisation providing services and volunteering opportunities to young people. Charity Director, Carla Barreto, said : “More families are struggling to put on decent meals for the family during the Christmas holidays. At the peak of winter with fuel costs and additional holiday spending, many just do not have enough money left for food.”

Economic trends

Compounding the concern is financial stability - the second greatest challenge for small charities and good causes, after rising demand. Almost half of respondents said they have seen a drop in income in the past 3 months, whilst two-thirds also expect demand to continue to rise in the next three months. Around 20% think the rise could be over 50% on current levels.

For Moorlands Community Charity, which supports older people, young people and those experiencing social isolation, funding is especially needed at Christmas to support those who might otherwise go without. 

"We provide a great deal of social activities for adults, children, families and young people that would not normally have the means to access these," says Jacky Crawford, CEO at Moorlands. "We also provide Christmas presents to children and young people and our food bank is particularly busy as many can't afford food at Christmas."

These findings are a reflection of recent findings from the New Economics Foundation that suggest that half of families are £110 a year worse off since 2019. 

With the £20 Universal Credit uplift now removed, 86% of causes are concerned about the impact this will have on their organisation and the community they operate in. The end of the furlough scheme and rising gas prices are also sources of concern, with 62% very or extremely concerned about the impact of increased fuel costs. What’s more, 69% are very or extremely worried about access to sufficient nutritious food for the people they support.

These economic concerns are all the more worrying for good causes that support local communities experiencing the highest levels of poverty and deprivation, where their services are critical for the health and wellbeing needs of the people they help. 

"People have been struggling all year"

"Many people in the community are unemployed, working poor or have had their furlough payments come to an end," confirms Maureen Chaseley of The Marketplace community larder, for which this is the first Christmas they have been able to open since the start of the pandemic.

Yvie Bernett at Chirk Community Agent adds: "People have been struggling all year and are now being hit with reductions in universal credit and removal of furlough payments at the same time as prices are rising rapidly - particularly fuel and food costs."

An emotional toll

As a result, frontline charities and community causes are feeling the pressure. As part of this quarter’s survey we asked causes to rate how they are feeling at the moment. Using the net promoter score (NPS) framework to create a sentiment score which ranges from a low of -100 to a high of +100, we found the result was -33. Anything under a score of 0 is painting a negative picture.

When we asked a similar question about how causes feel things are for the local communities and the people they are supporting, the average score dropped to -77. 

For secondary schools, where concern for the impact of the pandemic on teenage pupils is naturally evident, the score was -100. Similarly, mental health charities which are looking after some of the country’s most vulnerable people, reported this measure as -89. 

As our previous survey conducted in early summer 2021 showed, mental health remains number one on the list of concerns when it comes to beneficiaries - with three quarters rating it as either very or extremely concerning. 

Prioritising community impact

Charities and good causes operating at a local level are performing vital work and have stepped in to deliver front-line services that go way beyond their pre-pandemic remit at a time when traditional methods of generating income have been disrupted. 

Many local charities have been forced to do more with less during the last two years and have demonstrated phenomenal agility and creativity - drawing upon local knowledge, resources and goodwill to deliver what communities truly need, and fast.

As a result, the need for financial support is greater than ever, particularly in light of the uncertainties of new Covid variants and the threat of further lock-downs. In the last six months alone, Neighbourly has disbursed over £1m in local community grants through partnerships with Sainsbury’s and Virgin Media O2, which has been amazing. This is in addition to support from Southern Co-op, RSA, Aldi, M&S, Lidl, Cadent, Coca-Cola EP, Danone, giffgaff, Heineken and the B&Q Foundation.

Businesses like these have huge potential to make a difference to local communities whilst meeting their own CSR and ESG objectives - linking up with the good causes that have the local knowledge and connections to make the biggest impact, at scale.

Good causes can join our 18,000+ community for free, to access grant funding programmes, food and product surplus and employee volunteer resources, as well as adding their voice to our regular community surveys.

For businesses wanting to connect with and support local communities, follow us on LinkedIn and Twitter - or click the blue ‘Get in touch’ button below to book a demo.

Platforms like Virgin Money Giving have offered millions of charitable organisations a simple means to create fundraising campaigns and help supporters rally friends behind their cause.

But with Virgin Money Giving set to close at the end of November, many non-profits have been investigating alternatives to easily and safely raise vital funds and build a more diverse fundraising portfolio.

Fundraising can be hard work - which can make finding tools to help plug the gap seem overwhelming - particularly for small charities with less resources or groups without registered-charity status.

What does Neighbourly offer good causes and charities?

Neighbourly’s key offering for small charities and community groups comes in the form of its corporate partnerships. Neighbourly matches donations of volunteer time, surplus goods and financial grants with causes that can benefit. 

The platform also offers a fundraising tool for registered charities, whereby the charity can set up a fundraising pot (or pots) and encourage supporters to donate by promoting the pot through their digital and offline channels. Neighbourly charges a small transaction fee equal to 5% of the gross donation, exclusive of any Gift Aid declaration, which covers the cost of running the service, with any residual funds going directly back into the Neighbourly Foundation charity to support Neighbourly good causes.

The Neighbourly platform itself is completely free to use for good causes and is home to a community of over 18,000 small charities and community groups across the UK and Ireland. By registering on the platform, good causes have the opportunity to:

• Apply for grant funding from corporate partners throughout the year through simple and quick online application forms. Neighbourly’s corporate grant programmes support causes with everything from tackling food poverty to improving community spaces and running climate and greening projects.

• Collect and redistribute surplus food and products - including fresh and dry/packaged food from local supermarkets as well as items like books and laptops. The average good cause offering a food service saves £3325 per year by collecting surplus food through Neighbourly - so it’s a great way to diversify support to your good cause.

• Receive help with key projects through corporate volunteer programmes, which can be skills-based or practical help, delivered remotely or in-person. Good causes have received help with everything from mentoring, befriending and training to practical assistance with renovations, gardening and more.

Charities and community organisations can join Neighbourly here.

Branching out

Below we’ve listed four further fundraising platforms to suit small charities and community groups that include everything from easy-to-use fundraising pages to tools that can help diversify fundraising too.

The saying goes, don’t put all your eggs in one basket. So it’s useful to consider supplementary options in order to maximise fundraising and support. 

Givey

Givey has been designed specifically for small charities and good causes - which represent 95% of all types of charity in the UK yet receive just 6.6% of donations.

With that, it is deliberately clean and simple to use for the purpose of setting up secure fundraising pages. As with most fundraising platforms, there is a small transaction fee associated with donations. With Givey, however, the fee is charged to donors - meaning 100% of their donation goes to the charity or cause.

Registered charities, CICs and community groups can set up a page using Givey - with the platform also offering additional means for regular promotion and updates - both digitally and at a local level.

Just Giving

For those looking for something close to Virgin Money Giving, Just Giving is one of the most popular platforms for setting up fundraising pages online - for charities, individuals, nonprofits and community causes.

Just Giving is a profit making business, however it does not charge charities and good causes to use the platform. That said, there is a small transaction fee per donation - and an additional small fee for registered charities receiving gift aid through the platform.

Just Giving is simple, secure and used by millions of people - a strong option for fundraising - particularly when used in combination with other tools.

BOPP

BOPP offers a more alternative selection of tools via a mobile app that can allow causes to branch out and try new methods for fundraising, such as:

• Creation of QR codes that can be added to posters to allow people to easily donate 
• BOPP paylinks that can be sent online or via messaging apps to raise funds
• Instant, secure payment following donation
• Ability for donors to set up regular donations (e.g. monthly)

Charities and causes can get a free 30 day trial of BOPP to see if it works for them - after which they can opt for a £10/month subscription or ‘pay as you go’ model which charges a 5% fee per donation.

Kickstarter

B Corp certified platform, Kickstarter has a particular mission - to boost and support the creative sector - from food to music and art.

Like Neighbourly, also a certified B Corp, Kickstarter’s certification means they are legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment.

Kickstarter works by offering a platform to help people reach their financial goal for a project or business idea - with ‘backers’ being offered rewards for supporting the project. This can be as simple as a commemorative t-shirt or having their name on a mural wall of supporters.

Community-oriented projects that have been fully backed on Kickstarter have ranged from a community participation film to a free outdoor library box and a community street art and dance festival.

Whilst not suitable for all types of causes and projects, Kickstarter could be a solution for causes looking to launch social-good projects and spaces that need a kickstart to get going or one-off events that rely on external funding and support from the community to run.

Please note, none of the information in this blog constitutes financial advice. To stay up to date with Neighbourly news and blogs, follow us on LinkedIn and Twitter.

Neighbourly’s latest Community Survey of over 1,100 local good causes cites major concerns ahead as the removal of the Government’s Universal Credit uplift and the end of the furlough scheme looms over many of the country’s most vulnerable citizens.

While covid cases may be showing signs of levelling off, the number of people in need is not. Being at the heart of communities, local charitable organisations and their volunteers are addressing specific social and environmental problems at a hyper local level. But concerns and needs must be recognised to ensure that adequate support goes to those struggling the most.

Removal of government safety nets 

Since March 2020, the average number of people a local good cause supports each week has risen by 187% to a record 417 - a number that has increased consistently every quarter. 

During this time, many of those most in need have been supported by a temporary £20 a week uplift in Universal Credit, whilst millions have kept their jobs and 80% of their salary through the Government’s Furlough scheme.

With both of these support systems set to be removed at the end of September, it’s predicted that a huge number of people will fall through these financial safety nets, plunging thousands of adults and children into poverty and exacerbating existing social issues, food insecurity and mental health problems.

For good causes on the ground this is a massive concern, with 63% seeing the removal of the Universal Credit top up and ceasing of the furlough scheme as the top reasons for an increase in future demand.

On average, groups expect these factors, plus the end of covid restrictions, to increase demand for their services by 33%.This could equate to an additional 140 people per good cause needing support every week. 

Applied to Neighbourly’s entire network of charities and community groups across the UK and Ireland, this could mean the equivalent of over 2.3 million people needing additional support in the next three months.

Regional differences

Whilst these changes will impact people across the country, our Community Survey data suggests that some areas may be impacted more than others.

Of the groups that responded to the survey, the majority based in Wales (80%) and Northern Ireland (75%) predict that the removal of the Universal Credit top up will lead to an increase in demand for services, the highest prediction of all regions, when compared to 43% of good causes in the South West.

These regions were also the most and least likely (respectively) to report concern for an increase in need due to the furlough scheme coming to an end.

Local good causes are unique in that they can respond to the exact needs of their communities. As this data shows, certain issues and concerns are more prevalent in certain regions over others, giving us the opportunity to respond to the exact needs of individual communities and having the biggest possible impact.

The domino effect

With all of these changes, respondents have told us where their greatest concerns lie. For the second time in six months, the mental health of service users is right at the top of the list with 97% citing at least some concern and 60% rating it as something they were either very or extremely concerned about.

Along with mental health concerns, half of good causes told us they are very or extremely concerned about income streams and lack of government support for underprivileged children during the school holidays. Just under half are concerned about financial struggles and physical health issues amongst those they support, along with rising Covid-19 virus rates causing disruption to vital services. 

Understanding the data

We know a great deal of positive impact can be had at scale with the right funding. We’ve seen this with unrestricted Neighbourly Community Fund grants that supported the delivery of vital services and aid during the Covid-19 pandemic - and then again with funds from our partners through the Neighbourly Foundation which has reached almost £3M in the last 12 months. 

• Read more: Neighbourly Foundation launches to provide sustainable emergency support to local community causes

Funds that have gone through the Neighbourly Foundation since the start of this year include Aldi’s Hunger Monster campaign, which has raised funding specifically for groups looking after children and families experiencing food poverty. This came after survey data from organisations in Neighbourly’s network at the end of last year estimated that 96% of children supported with food provision were missing a meal every single week.

• Read more: Aldi pledges to donate 10 million meals to families facing hunger 

Our insights also show that, financially, there has been some recovery for some types of charities. For example, 8% of respondents told us they have seen an increase in funds in the last 3 months, with almost a quarter saying their income remained stable. Food banks have seen the best recovery when compared to other types of good cause, with just under 40% telling us that their income has remained stable or risen.That said, with the consistent rise in demand taken into account, this income in many cases is being stretched further than it ever has before.

Moreover, the majority of good causes have still seen consistent reductions in funding in the last year. Almost half (49%) have reported a drop in income in the last 3 months, with nearly 1 in 10 saying the drop had been as much as 75% or more. 

The worst affected include community centres, elderly care centres and youth clubs of which almost a quarter have seen a drop in income of at least 50% in the last 3 months.

Creating local impact at scale

To help us understand broadly what these charities and community groups need to tackle their biggest concerns, we asked them to rank needs in order of importance.

Unrestricted and targeted grants are number one on the list for all types of good cause as they look to prepare for an anticipated rise in demand and respond to more complex needs in the community such as growing mental health concerns and those impacted by poor physical health.

Grants and funding is crucial in that it can provide immediate and targeted relief through a huge range of different impact themes. However the breadth of positive change that can be achieved doesn’t just come from funding.

Over half of respondents rate donations of food and products as one of their highest needs. For the 35% of good causes that began some sort of food provision within their local community as a direct result of the Covid-19 pandemic, the ability to collect and redistribute surplus food means they can react quickly and locally to the growing problem of food insecurity.

Equally, a third told us that they are providing food parcels for children during the school holiday with 18% providing holiday clubs and 15% providing lunch clubs.

• Read more: Food Insecurity: Tackled by our Local Communities

For these kinds of organisations, surplus food and the provision of good nutrition is critical to maintaining the health and wellbeing of their service users. Not needing to purchase food often has the additional benefit of freeing up funds for complimentary services that support people struggling in other areas of their lives.

Impact at scale

It’s not just food that makes a difference either. Surplus products such as the hundreds of refurbished laptops RSA insurance donated when they had a tech refresh has given those most in need a means to connect with others, access education and find work.

Volunteering remains a vital resource, with a vast number of small charities and community groups relying either heavily or completely on volunteer support. As well as enabling them to reach more people in need, volunteer support can help these organisations to grow, access funding and more. 

With our latest research showing that employer-led volunteer programmes lead to a happier workforce, there’s a huge opportunity for employers to bridge this gap in volunteer numbers whilst connecting with local communities and boosting employee wellbeing at the same time.  

Whilst the situation might look incredibly challenging on paper, with seemingly impossible situations on the horizon for both local good causes and the millions of people they support, there is clear data that shows exactly what is needed, where it is needed and how it can most effectively be delivered.

The good news is that much of this data is a prediction ahead of time and there is still time to respond. The knock on effects of the Covid-19 pandemic have been huge and we’re not out of the woods yet. Whilst funding and grants programmes have continued throughout this crisis, they need to be continually scaled up and scaled out, with more businesses investing in their communities - be that through volunteers, funds or surplus - to deliver impact at scale.

If you're a business that wants to deliver positive impact at scale by donating volunteer time, money or surplus food or products, tell us your challenges or ask us a question by getting in touch - just click the blue button below. You can also follow us on Twitter and LinkedIn for regular news and insights.

• Read last quarter’s insights: Spring Community Insights: Local good causes integral to recovery from pandemic

Last week environmental charity WRAP launched it’s latest Courtauld Commitment Annual Report which revealed that food surplus redistribution rose by 45% in 2020, when compared with the numbers from 2019.

This represents more than 92,000 tonnes of food, worth £280 million and the equivalent of 220 million meals in one year.

This came with the news that the Courtauld Commitment will be extended and expanded with ambitious changes to support the UK’s goal of halving food waste by 2030.

Achieving global environmental goals

The Courtauld Commitment 2030 is a voluntary agreement of over 80 organisations, including the likes of Neighbourly and its food surplus partners Aldi, Lidl and M&S, to collaborate across the entire UK food chain to deliver farm-to-fork reductions in food waste, greenhouse gas (GHG) emissions and water stress that will help the UK food and drink sector achieve global environmental goals.

At Neighbourly we believe that edible surplus food should never be wasted and should instead go to communities in need. With food waste one of the biggest contributors to climate change, we see businesses as playing a key role in tackling not only climate change, but delivering social value to local communities in the process.

As signatories of the Courtauld Commitment we tracked a significant rise in our own food surplus redistribution during 2020 - working with our key partners to help them redistribute over 9,000 tonnes of surplus food, equivalent to almost 23M meals, to those in need - representing a saving of over 34,000 tonnes of CO2. This was through the midst of a global pandemic where need across local communities was greater than ever before.

As momentum increases, we have seen just how great an impact food surplus redistribution can have when communities, organisations, businesses and individuals collaborate and take action for the greater good. 

Yet, as the Courtauld Agreement has shown, it’s a holistic approach that will help us achieve critical climate objectives and, at Neighbourly, we continue to take this view, engaging businesses in a range of initiatives including product surplus redistribution, employee volunteering and targeted financial donations - along with showing their impact through social value measurement - to ensure progress made against SDGs and climate issues are sustainable and scalable in the long-term.

A commitment to halving greenhouse gasses

It’s clear that the Commitment is helping the UK food and drink sector to deliver against the UN’s Sustainable Development Goal (SDG) 12.3 to halve food waste - with food surplus redistribution a piece of a much larger puzzle. 

The Commitment will now be central in achieving and monitoring progress towards Net Zero ambitions and convening action on water stewardship in at-risk food sourcing locations.

As well as highlighting the important progress that has been made, the Courtauld Commitment’s Annual Report revealed ambitious targets for the years ahead which include :

• A 50% absolute reduction in GHG emissions associated with food and drink consumed in the UK by 2030, against a 2015 baseline.
• A 50% per capita reduction in food waste by 2030 vs the UK 2007 baseline.
• To achieve sustainable water management (quality and quantity) in the top 20 most important product and ingredient sourcing areas in the UK and overseas – covering 50% of product ingredients deemed ‘at risk’ from water insecurity

With only four months until COP26, the UK has taken a bold step forward in reducing the impact food has on the natural world. But the next 10 years will be a critical time for those engaged inside and outside of the Courtauld Commitment and beyond to continue to collaborate and cooperate in order to achieve these goals from businesses right the way across the lifecycle of food.

To read the full report, head over to the WRAP website.