Falling income and rising demand forces 71-year-old charity to close

Mental Health Aberdeen has closed citing falling income and rising demand, after operating for more than 70 years in the city and across Northeast Scotland.

Its chair Mark Lough said the charity had been “working tirelessly to explore all available options for the charity to continue delivering its vital services” but following a strategic review and “careful consideration of all viable options” it has closed its services, shops and head office with immediate effect.

It is now working with liquidators’ accountancy firm MHA, which is not related to Mental Health Aberdeen.

Lough said that the charity had been facing “the stark reality of a complex set of circumstances” including rising demand for mental health support across the region.

It had also been working to diversify its funding streams away from public funding and fundraising but “we have not been in a position to realise the long-term benefits of this in the current landscape”.

“The year ahead has also become increasingly uncertain,” he said.

“Funding has been reduced or withdrawn, and upcoming contract negotiations offer no guarantee of renewal. Rising operational costs, including a significant increase in National Insurance contributions, have added further strain.”

Lough added: “Despite the team’s tireless efforts to meet rising demand, our current income can no longer sustain the level of service we aim to provide.

“Like many third sector organisations across the country, we are facing the stark reality of being asked to do more with less – a position that is no longer viable.”

Amid its financial challenges the charity has been “increasingly reliant on the dedication of volunteer counsellors”.

Lough said they have “played a vital role in helping us meet the growing need. Their contribution has been invaluable, but it highlights the wider issue facing mental health charities right now, which is that public demand is outstripping the resources available to meet it”.

Charity Times editor, Lauren Weymouth, is joined by Dementia UK CEO, Hilda Hayo to discuss why the charity receives such high workplace satisfaction results, what a positive working culture looks like and the importance of lived experience among staff. The pair talk about challenges facing the charity, the impact felt by the pandemic and how it’s striving to overcome obstacles and continue to be a highly impactful organisation for anybody affected by dementia.

The cost-of-living crisis is impacting charities in a number of ways, including the risks they take. Endsleigh Insurance’s* senior risk management consultant Scott Crichton joins Charity Times to discuss the ramifications of prioritising certain types of risk over others, the financial implications risk can have if not managed properly, and tips for charities to help manage those risks.

* Coming soon… Howden, the new name for Endsleigh.