Charities could soon suffer from the credit crunch as Britain is becoming more frugal. Research by nfpSynergy shows a direct correlation between GDP (Gross Domestic Product) and charity income since 1980.

It shows that charities have had a dip in their donations when the average disposable income has fallen. Although charities have not reported a drop in donations yet, there is an average of 15 months between the drop of disposable income and charities.

Jonathan Baker of nfpSynergy commented: “Some charities have done well during a downturn, perhaps by being very efficient and tightening their methods.” But are advising people to be aware of this trend.