Charities cutting back on services over delays to probate, research finds

Delays to granting probate is causing charities to cut back on vital services amid a squeeze on their finances, according to new research.

A study published by wealth manager Rathbones found that over a quarter of charity bosses said they have had to cut jobs as probate delays have affected their finances.

The research showed that almost all charities, 99%, are currently affected by hold-ups in probate.

Andy Pitt, head of charities at Rathbones, said “significant delays with probate are causing charities to miss out on millions of pounds of income, which they need to be able to fund vital services and life-saving research”.

Gifts in wills currently raise around £4 billion annually for UK charities.

However, the research found that bereaved families are having to wait an average of more than 11 months for probate to be granted after a recent increase in waiting periods.

The wealth manager, which is responsible for £9.4 billion in funds under management for more than 3,000 charities, said that around 14% of each charity’s income is currently held up by probate issues.

This had led charity bosses to make difficult decisions in order meet the financial gap.

Eight in 10 senior charity executives said the problems are affecting their recruitment plans while 51% said it had caused them to cut back on their services.

The research also found that 43% said they have sold assets, such as property, to fill the gap while 27% have made redundancies.

Mr Pitt said: “The logjam is not only adding to the financial stress of grieving families, with property sales falling through or having to pay interest payments on inheritance tax – but is also resulting in many senior charity executives having to make difficult decisions on how to cope with hindered cash flow.

“They don’t know how long they could be waiting to receive these much-needed funds and it’s impossible to budget or plan for the future.”