CHARITIES in Pembrokeshire face a challenging year ahead, as new data from the Charity Commission highlights a steep decline in donations. In 2023, just 47% of people contributed to charity, down sharply from 62% in 2020. Rising operational costs and increasing demand for services are compounding the pressures on local organisations.

Ansvar Insurance, a specialist provider for the charity, not-for-profit, faith, and care sectors, has identified five major risks that charities may face in 2025. Alongside these risks, the insurer offers practical steps to help organisations navigate the challenges.

Mounting pressures for local charities
Adam Tier, Head of Underwriting at Ansvar, said:
“In 2025, charities will face higher operational costs, greater service demand, and ongoing financial pressures due to the cost-of-living crisis. Smaller, local charities are particularly vulnerable as resources are already stretched.”

Top five risks for 2025

1. Financial instability
Declining donations and increased costs, including rising utility bills and the living wage increase to £12.21 per hour, present significant challenges. Ansvar advises charities to adopt robust financial planning and explore alternative funding sources, such as corporate partnerships and grants.

2. Increased demand for services
Organisations supporting foodbanks, hospices, and mental health services are reporting heightened demand. While government funding for social care and healthcare may provide some relief, local charities should collaborate with councils and other groups to manage this strain.

3. Declining income from donations
Changes to Inheritance Tax and Capital Gains Tax could encourage legacy giving. To counteract falling donation levels, Ansvar recommends enhancing donor engagement strategies to build sustainable support networks.

4. Cybersecurity threats
Cybercrime continues to target charities, with a third of respondents in the Government’s 2024 Cyber Security Breaches Survey reporting attacks. Ansvar urges charities to implement robust cybersecurity measures, provide staff training on safe practices, and ensure their insurance policies cover cyber threats.

5. Regulatory and compliance challenges
New charity tax regulations, set to take effect in April 2026, and stricter data protection rules under the Data Protection and Digital Information Bill (DPDI), will increase compliance requirements. Charities should regularly review their strategies to avoid financial and reputational damage.

Proactive steps for resilience
Adam Tier emphasised the importance of forward planning:
“It’s vital that charities take proactive steps to ensure their resilience, from reviewing financial strategies to securing adequate insurance cover. These actions are essential for protecting against emerging risks and continuing to make a difference in their communities.”

Ansvar, part of the Benefact Group, is committed to supporting charities through expert advice and tailored financial services. The Benefact Group is the UK’s third-largest corporate donor, further showcasing its dedication to empowering charitable organisations.

Temporary arrangements have been put in place for Argos customers attending the Haverfordwest store to pick up heavy items while the town’s new public transport interchange is being built.

The construction work means that customers can temporarily collect heavy items from the Argos loading bay which is at the rear of the store at Riverside, Haverfordwest.

This area is accessed by turning left off Cartlett Road, just after the County Hotel. The exit is back to Cartlett Road, following the left only turn towards Bridgend Square (Morrisons) roundabout.

This entrance and exit is being widened by interchange contractors Keir Construction to enhance safety in the area.

WELSH SECRETARY Jo Stevens has chaired the first meeting of the Welsh Economic Growth Advisory Group, an initiative aimed at boosting prosperity, shaping the UK’s industrial strategy, and positioning Britain as a global leader in clean energy.

The meeting, held on Monday (Dec 2), brought together representatives from both governments, alongside leaders in business, education, industry, and unions, to influence cross-government policy. The group’s goal is to enhance economic growth, create jobs, and increase household incomes across Wales.

Supporting Welsh innovation

As part of this initiative, Stevens met with leaders in Wales’s digital and technology sectors to explore growth opportunities. Last week, she toured Wolf Studios in Cardiff Bay, home to productions such as *Doctor Who* and *A Discovery of Witches*, while discussing Wales’s creative industries.

Speaking after the meeting, Jo Stevens said: “I was thrilled to meet some of Wales’s most talented and ambitious minds and hear their ideas on how we usher in a new era of prosperity. This partnership has hit the ground running, working at pace to rekindle Wales’s proud industrial roots with jobs and industries of the future.”

Focus on key sectors

The group is expected to play a pivotal role in shaping the UK Government’s Industrial Strategy, which will prioritise Welsh industries. Their recommendations will also inform Welsh priorities for the UK Spending Review in spring 2025.

Since July, the UK Government has announced more than £1 billion in investments for North Wales, launched Growth Deals and Investment Zones, secured a steel industry deal for Wales, and delivered a record Budget settlement for public services. Over the next six months, the advisory group will meet regularly to refine priorities for economic growth and clean energy.

Voices from across Wales

Alison Orrells, Chair of CBI Wales, said: “I welcome the opportunity to share our members’ insights on actions needed to drive sustainable growth and prosperity across Wales. From regional investments to green growth projects and semiconductor clusters, Welsh businesses can play a crucial role in delivering this mission.”

Shavanah Taj, General Secretary of TUC Cymru, highlighted the need to address economic inequalities: “Many parts of Wales have been scarred by deindustrialisation and underinvestment. These plans must prioritise decent work, manufacturing, and a just transition to net zero.”

Oriel Petry, Head of Airbus Group UK Public Affairs, said: “I look forward to advocating for Wales to capitalise on its sectoral strengths and industries of the future.”

Dr Jenifer Baxter, CEO of Industry Wales, added: “Industry Wales is excited to help shape an industrial strategy that drives innovation and economic growth through high-value manufacturing, clean energy, and digital connectivity.”

Sir Derek Jones, Independent Adviser at Cardiff University, concluded: “Economic growth must be the top priority for Wales. This initiative is a vital step in ensuring that goal is achieved.”

The Welsh Economic Growth Advisory Group marks a fresh approach to tackling Wales’s economic challenges and unlocking its potential for future prosperity.