During the recession, charities tended to suffer greatly through a lack of consumers making donations to good causes. This was because household disposable income was so low that consumers gained the outlook of “every penny counts” and therefore looked to save their spare cash in order to cushion themselves against further economic downturn.
Although charitable donations have increased slightly amidst signs of recovery, charities are now of the view that efficiency and careful money management are hugely important. It is for this reason that one of the UK’s largest charities, Oxfam, has decided to close several regional offices and make cuts to its workforce.
In the year to the 31st of March, Oxfam’s income fell by £17.6 million to £367.9 million, with shops’ net income dropping by 9.9 per cent to £20.1 million. Proceeds raised by fundraising, meanwhile, dropped by 5.6 per cent to £267.8 million.
In total, 125 jobs are expected to be cut around the country, with the majority of losses centred at Oxfam’s Oxford headquarters where 110 staff will be made redundant. Chief executive officer Mark Goldring explains that this will allow the charity to focus more clearly on the main issues affecting those living in poverty around the world.
He says; “It is imperative that we have an Oxfam which lives within its means and is relevant to 21st century needs.
“Advances in technology mean we no longer need as much support in head office – instead, our resources will be focused in the regions where we carry out the majority of our work.
“This will mean we can deliver the most effective and efficient support to the millions of people who go to sleep hungry each night.”
While the locations of the regional offices set for closure have not been revealed, Oxfam has confirmed that those working within certain areas of its workforce will be more highly affected than others. These employees from groups including finance, human resources, business support, and campaigns and policy.
In terms of Oxfam’s money saving targets, the charity is expected to focus on fewer countries based on a spectrum which identifies those most in need of the services Oxfam provides. It will also narrow its field of expertise, with a particular target being to promote the rights of women in poorer countries. However, in the long term, it hopes to balance its budget to remain financially secure in the event of further economic issues. It also hopes this will allow for funds to be allocated for investment in other charitable programmes.
Human resources director at Oxfam, Jane Cotton, pledged a policy of complete honesty with all Oxfam staff during this transitional period.
She said; “This is the start of a consultation process with staff.
“We will make every effort to keep the number of redundancies to a minimum and where possible we will redeploy people and help colleagues find work elsewhere if this is not practical.”
Do you think Oxfam should be cutting back on staff, or rather should it be looking to find more effective ways to grasp public attention?
