Charities selling assets and cutting services due to probate delays

In a poll of 100 UK charity board directors, finance directors, investment managers and investment directors looking after £3.7bn in investments, wealth-management group, Rathbones, found that 87 per cent of charities are being negatively impacted by probate delays. More than one in 10 reported being very badly affected.  

Over half (57 per cent) of respondents said delays have meant that they have sold vital assets, such as property, to fill the financial gap. Around half (51 per cent) said it has adversely affected recruitment and 43 per cent said they have had to cut back on vital services. Others reported having to make redundancies (38 per cent) and cutting back on research (24 per cent). 

The research found that, on average, 14 per cent of each charity’s annual income is still being held up by probate issues – the same amount as found in a previous Rathbones study, in May 2024.

Andy Pitt, head of charities at Rathbones, said: “While there have been improvements in probate waiting times over the last six months, this is still a live issue for charities, and costing them millions of pounds of vital income.

“Charities are having to become increasingly agile and resilient to build against these kinds of disruptions in an already challenging environment. It is critical that they ensure their investment portfolios are structured to provide liquidity when needed, balancing long-term growth with short-term flexibility, while also ensuring they anticipate and plan for times of financial stress.”

Rathbones is responsible for £9.3bn in funds under management for more than 3,000 charities.

www.rathbones.com