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.”

Picture by Engin Akyurt on Pexels

The Virtual Fundraising Monitor, a research report by mass participation agency massive and created in partnership with JustGiving, examines data shared from 150 virtual fundraising events delivered in the UK by charities including British Red Cross, Breast Cancer Now, and Alzheimer’s Society since lockdown began, along with publicly available figures. It reveals which activities, from running to walking, and cycling, have been most popular, how they have performed in terms of income and participant numbers, and what makes a virtual event a success, as well as offering insight and guidance to help charities with their own campaigns in the virtual arena.

Of the 150 campaigns, 45% were new events launched in response to the pandemic, with the remainder adaptations or developments of campaigns already planned.

Analysing their performance, the research identified a number of key determiners of success, with guidance for running virtual events including:

– Events with clear and simple asks do better: clear and simple asks, like the MS Society’s 100K Your Way which asked people to run, walk, or cycle 100km typically recruit 40% more participants and report higher fundraising levels than those that leave it to their supporters to decide how they would like to raise funds.

 – Stand out comes from your cause: A clear ask is critical but connecting your event to your cause also significantly and positively impacts success. British Red Cross’s Miles for Refugees, for example, sees fundraisers pick a distance to aim for over a month, which represents a part of the journey a refugee would make to reach safety. This event went from raising £27,000 in year one to £2m in year four with over 7,000 sign ups.

– People need opportunities to connect, even virtually: whether they’re virtual or not, events work because they bring people together through shared experiences. Online touchpoints such as Facebook groups or Strava clubs, that let people share their experiences, are one of the most valuable engagement tactics for helping virtual events succeed in terms of supporter experience and money raised. Breast Cancer Now for example sets up Facebook groups for all of its fundraising challenges, and its June Walk 300,000 Step Challenge saw more than 4,000 people join its Facebook group for this event.

– Virtual events still need marketing: allocating budget for this, as well as for building the virtual event, plays a key role in determining success. Research by JustGiving cited in the report also backs this up, finding that charities with event plans looking two to five years ahead were more likely to report stable or income growth than those with just one-year plans.

– There is opportunity for every charity: with people’s daily lives changing significantly during the pandemic, many have found themselves with the opportunity to try new activities, establish better habits or create space to think about causes and the way they live their lives. This creates opportunities for charities, as does the removal of many of the barriers to entry typically experienced by smaller charities with physical events.

Commenting on the report, Sally Falvey, Head of Corporate Marketing at JustGiving said:

“The Virtual Fundraising Monitor shines a light on the incredible wave of creativity and innovation that has been unlocked in the charity sector this year in response to COVID-19, and the dramatic acceleration we’ve seen at JustGiving in the number of charities launching virtual events.”

“It’s reassuring to see that the report reveals that some of the bedrocks of event fundraising remain the same – we don’t have to throw out the entire rule book just yet, but there are emerging trends and differences shared that will help all charities benchmark their virtual events performance as they continue to adapt their fundraising.”

Photo credit: Photo by Manfred Antranias Zimmer from Pixabay

Liz Hughes, Charities Institute Ireland CEO, said:

“Challenge Thirty Two is a great way for people to show their support for a charity that means something to them – and have plenty of fun along the way!” 

With over 20% of Cii members taking part in the challenge there were some unique and interesting challenges, not least for Threshold and Brighter Communities Worldwide.  

Saoirse Jacoby, head of fundraising with Threshold explains:

“Our home-saving services have never been more important and needed by so many with the Covid-19 Crisis. When the crisis hit, and the job losses started, the phone line never stopped ringing. In fact, the number of calls to Threshold’s nationwide Freephone Helpline from people in need of emergency financial assistance is seven times what it was in 2019.

“Some people in Ireland are going through the most challenging time in their lives right now. And that’s why we need to do all we can right now to make sure no one is without a home.”

Jacoby continues: “Whether it was digging out the runners for a 32km walk, 32 gruelling workouts in 32 days, or a 32km cycle, all of the staff at Threshold came together as part of Challenge Thirty Two to help save even more families from homelessness.”  

Brighter Communities Worldwide raised over €11,000 through during the campaign. Like most charities in Ireland their fundraising plans were devastated by Covid-19, but the charity was blown away with the creativity and innovation that came from how supporters engaged with the challenge. Head of fundraising Jane Breare said:

“We had people walk, hike, cycle, kayak, toddle, skip, star jump, plant trees … we had dogs catching balls…children writing postcards, making crafts and baking…people participated in their living rooms whilst isolating, at work incorporating challenges into their work routine … there were many variations on the number – 32 flights of stairs, 32 kilometres, 32,000 steps, 3.2 lengths of the lounge in a baby walker!” 

It was a global effort with people taking part in New Zealand, China, Lebanon, UK, Jordan, USA, Portugal and in Kenya where Brighter Communities Worldwide CEO and the co-founder of the charity took part with a team of local staff and volunteers.

Breare continued: “We had an army of supporters taking part and we even had an Olympic Gold medallist and an Irish Overseas Ambassador. We also had great fun and enjoyed a true community spirit …the Brighter Communities Worldwide spirit of passion, togetherness and integrity.”  

The Irish people rose to the challenge and the initiative will continue to run in the weeks ahead, with organisers hoping to see it become an annual programme.