The risks facing charities in 2024

In this report we explore the key risks facing charities and the importance of proactive planning

Charity risk 2024

PIB Insurance Brokers are proud to work closely with charity and not-for-profit organisations to support the great work that they do. We have worked closely with charities of all sizes for over 40 years. In that time, we have gained valuable insight into the risks charities face and how to mitigate those risks effectively.

The article that follows outlines the risks we see approaching the charity sector for the coming year and whilst every charity faces unique risks, our guidance is designed to be applicable to all. Zach Gray, CEO, is delighted to introduce this report and hopes it will be beneficial in helping you as a roadmap for considering your risk profile and subsequent insurance arrangements in the future.

The cost-of-living crisis continues to bite, with some forecasts suggesting it may continue until 2028, which means charities could well face a ‘cost of giving’ crisis in 2024.

Certainly, in 2023 charities have continued to balance increased demand on their services with reduced levels of income, calling for ever-increasing levels of resilience and creativity to manage the crisis.

We take a look at some of the key risks that charities may want to consider as we approach 2024.

  • Economic uncertainty

    Rising or stagnating inflation and the ongoing risk of potential recession could see charitable donations decline in 2024, calling for non-profit organisations to plan accordingly with contingency budgets.

  • Greater competition for donations

    As the economic challenges persist, competition for charitable donations could well increase, requiring charities to focus on supporter retention and stewardship.

  • Rising costs

    It is very likely that inflation will continue to drive up operating costs, forcing charities to look for opportunities to cut expenses where possible.

  • Public health issues

    Covid, influenza and other public health concerns could further impact charity operations and fundraising, requiring charities to include flexibility in their plans.

  • Natural disasters

    Extreme weather events may well increase, diverting donations and money to disaster relief efforts, calling for charities to have emergency plans in place.

  • Cybersecurity threats

    Charities hold sensitive data on supporters and staff, so it is essential to maintain the highest levels of security against phishing and cyberattacks.

  • Talent retention

    In a challenging hiring environment, it’s likely that employee turnover may rise, which means succession planning and employee development is essential.

  • Compliance burdens

    Charities face ever more stringent regulatory requirements, so it is essential to ensure legal requirements are up to date, tax forms are filed and policies follow best practice.

  • Reputational risks

    Any controversy or scandal could damage a charity’s reputation and impact supporter trust, resulting in a drop in donations, so it’s imperative to have a crisis management plan in place to navigate such issues.



Amidst a global landscape of geopolitical events, war and climate change disasters, and on the home front a continuing cost of living crisis, extreme weather events and increased incidences of cyberattack, everything looks set to impact the charity sector even further as we move into 2024. A combination of increased need for a charity’s services, reduced donations and greater competition is likely to put greater strain than ever on the sector’s resources.

Often operating on tight budgets and the increased financial burden of insurance premiums can limit resources available for products and services for charities. However, inadequate insurance cover such as underinsurance on buildings valuations increases the risk faced by charities. In the event of a disaster, if underinsured, a charity could find themselves unable to recover the full value of their assets, reducing their ability to rebuild, which will in turn impact their day to day operation of the charitable activities. As insurance costs escalate, charities have to find a balance between safeguarding assets and ensuring resources are directed towards their charitable activities.

The way forward

As we approach 2024, it is key for charities to anticipate challenges and have strategies in place to manage events and weather uncertainties ahead. The continued growth of digital technology offers new ways for charities to communicate with supporters and create more personalised fundraising campaigns, along with the use of Artificial Intelligence to enhance the supporter experience, and this may well be key to a charity’s survival in the future.

More than 1,000 not-for-profit organisations and charities currently trust PIB to meet their insurance needs and mitigate risks, giving us considerable expertise within the charity sector and a real understanding of current and emerging exposures. Proactive planning is absolutely necessary if charities are to withstand the many risks that 2024 could bring, our team at PIB has the capability and knowledge to work with you and play an active role in the solution.

If you are looking at insurance and risk management advice for your charity, please contact Rachel Barker and the charity team on 0330 058 9862 or email

Enquire about Charities Insurance

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