UK charities are optimistic about the future despite concerns over economic uncertainty affecting donors’ disposable income and increasing demand for services, a new report from the Institute of Fundraising and PwC has shown.
Fundraising for Impact is based on a survey of over 100 fundraising charities of different sizes, and shows charities predicting a 10% growth in income over the next three years, and investing in fundraising and the supporter experience, despite the economic issues.
The report explores fundraising income and costs, how charities are investing in fundraising, key fundraising challenges and their views about fundraising in the future. It shows that despite the pressure on charities, including increased costs in compliance, workforce and fundraising activity, charities are adapting and proactively taking control through innovation and new approaches to put in place strong foundations for future success.
Other key findings include:
– The top three current fundraising priorities for charities are: improving the experience of current supporters (63%), reaching out to find new supporters (59%), and innovation, new approaches & trying new things (53%)
– The most important areas of investment are finding new supporters (91%) and improving the experience of current supporters (90%)
– Only 35% said it was business as usual
– Three quarters of respondents (73%) said their charity’s investment in generating voluntary income was a priority, with digital engagement being the most likely area of predicted increased donations over the next three years
– 79% were concerned by the uncertainty over the economy and the disposable income of donors (79%)
Peter Lewis, CEO, Institute of Fundraising, said
“Fundraisers know that the success of fundraising goes beyond the pound that is donated – it is about the relationships that are created between the cause, the charity and supporters that will deliver long-term success. While increased costs and economic uncertainty lead to a challenging environment, I’m pleased to see that more charities are putting in place strong foundations and building blocks that will deliver for their causes into the future.”
Also commenting, Aidan Sutton, Partner and Head of Charities, PwC, said:
“I’m heartened by the sense of positivity and optimism from those who responded to our survey. Improving the experience of existing supporters and attracting new ones are, quite rightly, seen as key priorities – and building deep, authentic relationships will be at the heart of this. Focusing on creating a great supporter experience means a shift in mindset away from a traditional measure of financial return on investment and towards a return on experience.”
A second report out this month, Charities Aid Foundation’s (CAF) UK Giving Report 2019, backs this up. It reveals a decline in trust as well as in the number of regular gives in the UK: an issue the report says must be addressed with a need for charities to work harder to inspire people to give as well as to rebuild relationships. Read more here.