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NHF requests financial support from members after income hit by coronavirus crisis
The National Housing Federation (NHF) has written to all of its members asking for support due to the “severe short-term impact” the coronavirus pandemic has had on its finances.
The housing association trade body said it had seen its income reduce by 25% this year due to impact of the crisis on its business plans.
Over the past few months the NHF has taken action to reduce costs, including salary cuts for every member of staff and placing around a third of its staff on furlough. A virtual conference programme has also helped recoup some of the losses from its usual events programme.
As a result, the NHF said that it has reduced a forecast £3m deficit this year to roughly £600,000.
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But if the organisation is unable to close the remaining gap, it said that it will “be faced with taking measures that will significantly impact our ability to support the sector during this difficult and uncertain time”. The NHF said it risks losing staff if it is unable to “reverse the cuts they have borne”.
In order to avoid this, the body is asking members for “an exceptional, one-off financial contribution to the NHF this year”.
In a letter to members, Kate Henderson, chief executive of the NHF, said the organisation had never made a request like this before and would not do so again.
She pledged to develop plans, in consultation with members, to ensure the NHF is in a sustainable financial position moving forward and without the need for a further contribution in the future.
In a statement, Ms Henderson said that it was “not a request we take lightly”.
“It is a decision we have come to after considering all options available to us with our board,” she stated.
“Prior to the coronavirus pandemic, the NHF was in a strong financial position, but unfortunately this crisis has dealt a significant blow to our finances which we could not have foreseen.
“We have already taken swift action to make savings, including significant salary cuts for every member of staff and furloughing around a third of our staff. We believe that now it is more important than ever that the housing association sector has a strong trade body.”
Ms Henderson added that she was keen to talk to members about the request and encouraged anyone with questions to get in touch.
