Charities are being hard hit by the Covid-19 lockdown with directors warning the bodies need help to survive before the pandemic is brought under control.
Sector experts warn that hardly any UK charity will come out of the coronavirus lockdown unscathed.
Almost £4 billion has been wiped from charity fundraising, according to early estimates.
Daniel Fluskey, head of Policy and External Affairs at The Institute of Fundraising NCVO, said: "There may be some individuals that have success but no charity will be unscathed.
"Most charities see approaching a huge financial hole and anything raised is mitigation against that."
The Institute of Fundraising is the professional membership body for UK charitable giving. It has more than 600 organisational members who raise more than £10 billion in income for good causes annually.
Key funding closed
As coronavirus sweeps the country some charities are in the front line of health care using resources.
Others are losing employed staff and volunteers as the country begins another three weeks of lockdown.
Other charities will be needed after the pandemic to help in a country that is likely very different from what it was before the pandemic.
Pretty much every charity is losing support from volunteers who cannot leave their homes or making employees redundant. They have also seen fundraising efforts have ground to a near-halt.
The Charity Commission says it is working with organisations to try to be flexible as they face the unprecedented difficulties of operating in a pandemic.
Mr Fluskey said: “The main areas for charities are closed, from local shops where doors are shut to big events like the London marathon or the Great North Run.
“The cancellations of these events will have put a big hole in the charity reserves.
“It’s not just the fundraising on the day. It’s also the ability to build up a relationship with fundraisers and get them to become regular givers.
“On top of that, community events in local areas are on hold everywhere once the lockdown happened.
“Some are trying virtual events but it is an exercise in mitigation rather than getting sums of money in."
Charities are 'fundamental'
Despite high profile success stories like Captain Tom Moore’s inspirational £20 million fundraiser from his back garden, the charity world is reeling.
The £4 billion estimated lost revenue includes income from big annual events like the London Marathon as well as the small weekly community events, sales in now closed shops and corporate sponsorship.
Mr Fluskey said that charities are coming up with virtual fundraisers and innovative online events but it is a drop in the ocean to the lost millions.
He said government needs to step in to help the charity world.
Mr Fluskey said he is hoping the £750 million already promised to the sector will be increased to a billion-pound-plus, and change to some laws that prevent charities taking on as volunteers people they have made redundant.
He also said the funding needs to be in place so that charities can survive the economic crisis of the pandemic and be able to offer their services in the post-pandemic environment.
That will , he says, include a nation in recession, more unemployment, and less security as the fallout of the outbreak.
“Nobody is expecting the charity sector to sail through this unscathed. We are in crisis [but] charities are a fundamental part of our society, not just a nice idea.”
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
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UAE currency: the story behind the money in your pockets
The Book of Collateral Damage
Sinan Antoon
(Yale University Press)
PREMIER LEAGUE FIXTURES
Saturday (UAE kick-off times)
Watford v Leicester City (3.30pm)
Brighton v Arsenal (6pm)
West Ham v Wolves (8.30pm)
Bournemouth v Crystal Palace (10.45pm)
Sunday
Newcastle United v Sheffield United (5pm)
Aston Villa v Chelsea (7.15pm)
Everton v Liverpool (10pm)
Monday
Manchester City v Burnley (11pm)
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FIRST TEST SCORES
England 458
South Africa 361 & 119 (36.4 overs)
England won by 211 runs and lead series 1-0
Player of the match: Moeen Ali (England)
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The specs: 2018 Maserati Levante S
Price, base / as tested: Dh409,000 / Dh467,000
Engine: 3.0-litre V6
Transmission: Eight-speed automatic
Power: 430hp @ 5,750rpm
Torque: 580Nm @ 4,500rpm
Fuel economy, combined: 10.9L / 100km
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