In recent years, the combination of the COVID-19 pandemic and rising operational costs has significantly impacted mental health charities, leading to a sharp increase in demand for their services while simultaneously causing a decline in overall income. This briefing paper explores the current state of charity reserves in light of these developments, highlighting the financial pressures and the need for strategic planning to ensure sustainability in the face of ongoing uncertainty.

This work was led by Jane Hughes and Sarah Maguire, Chief Executive Officers of Mental Health Matters and Choice Support, respectively, and Trustees of the Association of Mental Health Providers.