UK charities ‘cautiously optimistic’ about year ahead

In the UK, almost a third of charities saw income drop in 2022, according to new report, but two thirds maintained or increased it, and most are cautiously optimistic about the year ahead.

The latest Charity Pulse report from Enthuse surveyed leaders at over 200 UK charities to find out how their organisations fared in 2022, reasons for optimism and potential challenges in 2023, as well as insight into how good causes are embracing technology.

It shows that small charities fared best in 2022 with 70% saying their income either stayed the same or rose. This was followed by larger charities at 64%. Among medium sized charities, nearly two in five of those surveyed for the report saw either volatile or lower fundraising. However, this is an improvement on 2021 when this figure was 45% for medium sized charities.

Looking at the year ahead, just over half (53%) expect to see growth in fundraising events and activities of all sizes, with 12% forecasting a drop in income. 55% of charities plan to get involved in mass physical events while 47% say they are organising their own mass events. Additionally, 39% think that corporate fundraising will increase, while 18% predict a drop. With legacy giving, 25% predict growth in this area while 19% expect a dip.

Cautious optimism for 2023

• Overall, 72% of the charities surveyed said they are either very or fairly optimistic about the year ahead
• 59% said that supporters seem keen to take part in events post Covid
• 55% believe there will be more opportunities to make use of digital channels in 2023
• 51% believe that younger generations are feeling more positive towards charities

The biggest challenge is the cost of living crisis – highlighted as significant by nearly half (47%). Other key challenges are fundraisers being reluctant to ask for donations in the current financial climate (37%), and persuading volunteers to help with fundraising and events (33%).

Commenting on the research, Chester Mojay-Sinclare, Enthuse Founder and CEO, said:

“Despite the challenging backdrop, it’s encouraging to see that the sector is cautiously optimistic about the year ahead. Participation in mass events seems to be key to this. Charities are recognising the appetite for great experiences post Covid and are looking to make the most of it.

“It’s clear from the research that the clever use of technology will be vital at a time where resources are stretched and engaging supporters is paramount. It’s important that the third sector embraces innovation by tapping into the potential of tech like AI and improving user journeys with the use of end-to-end integrated solutions.”

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