The UK Civil Society Almanac 2023 from the National Council for Voluntary Organisation (NCVO) looks at the financial year 2020/21, which began shortly after the UK’s first national lockdown.

The sector’s income for the year dropped by 3% to £56.9bn, of which 46% (£26.4bn) came from public donations. In 2019/20, public donations had been £4.4bn higher.

For 2020/21, the next largest source of income was Government, accounting for £16.8bn, an increase of £900mn from the year before. Other sources of income were either stable or increasing, with the exception of investments (£4.5bn, down from £5.3bn).

Sector comparisons

Looking at different causes, environmental charities had the highest proportion of income from public donations (69%), followed by parent-teacher associations (57%). These types of charities were also top of this list the previous year, but in the reverse order. Charity sector umbrella bodies got least income from the public (32%).

The sectors getting the most income from Government were playgroups and nurseries (50%), law and advocacy (42%) and social services (42%).

Fundraising spend drops

The sector spent slightly more than £1bn less on fundraising activities in 2020/21 than it had in 2019/20, at £6.6bn. This meant it made up 12% of sector spending.

Fundraising’s portion of sector spending has been gradually increasing over the past two decades; in 2000/01, it was £3.6bn out of a total of £35.1bn.

The UK’s smallest charities spent least on their fundraising (8%), but received the most donations, with the public accounting for 54% of their income.

Other findings of the wide-ranging report include a 4% drop in the sector’s employed workforce, which totalled 928,886 in the year, out of a total UK workforce of just under 30mn in the same year. The number of Britons doing formal volunteering work at least once a month dropped from 17% to 16%.

Sarah Vibert, CEO of NCVO, says that the overall drop in income was “particularly felt by smaller charities… this left them extremely vulnerable to the cost-of-living crisis”. She adds:

“We are now facing the long-covid effect. Each day, we see smaller voluntary sector organisations make tough decisions to scale back, cut services or shut their doors for good. Charities, and the communities they support, need and deserve a more sustainable future if we’re going to make any progress in addressing inequalities across the country.”

Picture by Gary Butterfield on Unsplash

Future-proofing foundations for a post-Covid-19 world offers insights into how foundations learned and adapted to the new circumstances thrust upon them by the pandemic. It also shares ideas for how the sector can make responsible philanthropy the new normal.

Leveraging data from a document review as well as various surveys and interviews conducted with the membership of the former EFC, the analysis delves into what foundations have learned from this period.

It shows that while organisations may survive in their current state, they will lose legitimacy and perceived value if they do not adapt. The publication first looks at the challenges perceived by philanthropy professionals and how they respond to these threats, and then takes stock of actions that have helped foundations to bounce back from disruption.

The paper also offers a set of recommendations to help organisations spot opportunities for change and prepare for what’s next, including advice on how to move towards new models of philanthropy, commit to reflexivity and organisational learning, and engage with criticism.

Sevda Kilicalp from Philea commented:

“There has been a growing interest in trust-based philanthropy over the last few years. Our analysis suggests that in addition to flexible and power-shifting relationships with grantees, institutional philanthropy should assess its performance against four other dimensions; including the alignment of internal practices with overall strategy; resonance with society; innovative and risk-tolerant approach to problem solving; and being guided by the principle of accountability, transparency, accessibility and humbleness in order to ensure that responsible philanthropy becomes the new normal beyond the emergencies.”

Photo by fauxels on Pexels

Swissfundraising and the Zewo Foundation’s report summarises research on fundraising nonprofit organisations (NPOs) during the pandemic period of 2020-21, accompanied by commentary and interviews.

It highlights how, in Switzerland, the pandemic saw 8 out of 10 households donate, with the average annual amount given per household rising from around €288 to €337, according to a survey by Swissfundraising and the Zewo Foundation. In 2020, this led to the projected total amount donated exceeding the CHF 2 billion threshold (€1.9bn) for the first time.

Donations not only rose during the pandemic, the report shows, but significantly more came in via digital payment channels such as Twint. Charity websites also proved a key channel for donations, while many organisations made great strides in digitisation, for example, supplementing traditional communication channels and marketing tools with digital, and increasingly integrating their online and offline worlds.

In the media, with the pandemic remaining a key focus until mid-2021, coupled with a growing focus on health and human rights issues, the report finds that Swiss NPOs and their involvement in these areas were largely viewed positively.

However, one significant media issue did arise for the sector during this time. This centred around the Corporate Responsibility Initiative (KVI), which was narrowly rejected at ballot in late 2020. The initiative was launched by a coalition of Swiss civil society organisations in 2015, aimed at holding Swiss companies accountable for their actions abroad. This sparked debate over whether NPOs should be political, and led to an increase in negative media reports on NPO governance issues.

Roger Tinner from Swissfundraising commented:

“Swissfundraising is very pleased that for the first time over CHF 2 billion in donations were made and that solidarity with those in need was strengthened during this difficult time.”

Photo by Louis from Pexels

Following a major crisis like a pandemic, it’s to be expected that we will have a bigger state, and more state spending. Certainly, that has been the way for health and education spending, which has hit a record high in Ireland recently.

This level of spending was an inevitable outcome of the Covid 19 pandemic and the Programme for Government which emerged from our General Election of 2020. Both crystalised many of the gaps in our public services – not just in the capacity of our hospitals but across a swath of services like primary care, disability services, mental health, housing, how we support carers, educational disadvantage, and many, many more. And yet, charitable services were largely missing from that funding boost.

Making the case for charities

The crux of the issue is that the role that our charities do and will play in meeting these challenges is still not well understood. The history of most Irish charities – as is the case across much of Europe – is that they were established because the State left gaps in social, housing and health provision, requiring or enabling charities to step up to close the gap.

If governments are serious about committing additional funds to help nations recover from the pandemic, a key question will be how that funding is spent. Will the state take on more and more direct service delivery? Or will it recognise and build on the existing infrastructure and value for money offered by key charities to do more.

As a means of delivering services, there is a strong case to be made that charities have a clear advantage over direct delivery by the public sector. By their nature, charities are often closer to the service users and more in tune with their needs with strong neutral systems for interaction in place.

Besides providing non-partisan or independent advice and help, this proximity to citizens also means charities are innovative and flexible. They can test innovations and ideas in real time. Many services now provided to the most vulnerable in our society originated from innovative “charity” set ups. Organisations who saw a gap in support provided by the state and developed the services to fill that need. Organisations that can offer greater value for money than the public service often can. Organisations that are more agile, who can test and learn quickly, adapt and respond without the red tape or institutional approvals processes to try new methods.

Services initiated by charities have often subsequently scaled-up with state support. Without innovation by charities, many of these services might not exist today. During the pandemic many charities transformed quickly to deliver services online, to be there providing vital services, mental health supports, housing, social services, education and disability supports, and much more.

Charities had to innovate for new funding sources and find new ways to engage its volunteer bases to enhance service delivery, supporting critical employed staff who were equally on the front line in the height of Covid. With strengthened regulation, and high standards of governance continually growing, charities are well placed as experienced, professional and essential components of a vibrant society. So, the state should surely look to reap the benefits of working in alignment with strong and experienced charities.

Overcoming the obstacles

There are obstacles to this, but none are insurmountable. One long recognised constraint, in Ireland at least, is the absence of a sustainable funding model. At present, most charities operate on the basis that last year’s funding will emerge from the annual “estimates dance” that goes on between Government and its agencies and eventually delivers an outcome in November or December. It’s a principle that is completely at odds with commercial practice where budgets are agreed for the year in advance. We need to move to a system of multi-annual funding to enhance strategic planning, and to enable the more efficient and effective allocation of resources to meet need. Too much hangs in the balance. No charity board throws caution to the wind, but more security is needed to really drive impact on key issues being tackled.

Another barrier to enabling charities to deliver more is the absence of an appropriate cost-recovery model for programmes delivered by voluntary organisations, including costs of compliance and relevant governance overhead and administration costs. Where charities are stepping up and providing services under contract or service level agreement for the state, these should be paid for in full, allowing for governance and management costs. These are essential parts of programme delivery. An expectation of compliance with the highest standards of service provision, data protection, safeguarding and accountability but unwillingness to support charities to fund the professionals and systems needed to ensure these standards are met.

The core of every successful organisation

At Charities Institute Ireland, we firmly believe in the importance of these governance and best practice standards, but we also recognise that these require professional systems, administration and ultimately more staff. Charities are tackling significant local, societal and global issues, and short term savings in contracts does not help build robust and resilient organisations.

Full cost recovery and capacity building to help charities retain staff is more conducive in the long run. The core to every successful organisation is the quality of its people. Many charities carry heavy responsibilities to users in terms of the quality of care and the need to provide professional level services. Doing right by our vulnerable, elderly, disabled, marginalised, youngest, and sickest, by all our people requires dedicated and professional staff. And not just at front line defence but at senior and middle management where the strategic innovation and implementation occurs.

No one should be expected to work for significantly less than their value, especially when they are delivering vital services that will otherwise let people fall through the cracks. To seriously tackle major challenges like the growing issues of mental health, health, housing, disease, childhood illness, disability and inclusion, it warrants great people, who are not only committed to join, but encouraged to stay side by side with our communities, public services, and institutions. And who act for us all to make the world a better place every day.

About Scott Kelley

Scott Kelley, Charities Institute Ireland

Scott Kelley was appointed Charities Institute Ireland’s COO at its inception in 2016. In this role, Scott oversees Cii’s operational policies, rules, initiatives, and goals. Scott helps Cii execute long-term and short-term plans and directives by implementing judgment, vision, management, and leadership.

With over twenty years of experience in business operations, strategic development, and sales Scott has a proven track record in stakeholder management, budget forecasting, and event management across multiple sectors in Ireland, Australia and the UK.

Photo by Julia M Cameron from Pexels

Based on a survey of 480 nonprofit representatives across Europe, the 2021 Nonprofit Pulse Report reveals that 2 in 3 respondents expect their total income in 2021 to exceed or match income from last year.

Although half of respondents had to cancel or postpone fundraising activities during the year, nonprofits innovated and diversified, ramping up their use of digital. More than 2 in 5 reported a rise in individual giving over the past year, with 1 in 4 saying donation levels were stable. As demand for services continues to rise and social distancing restricts face-to-face outreach, over half (55%) have developed new ways to deliver their mission and reach beneficiaries.

Concerns about increased workloads and pressure on staff

However, the report exposes concerns about rising workloads and increased pressure on nonprofit staff. A second year of lockdowns, remote working, cancelled fundraising events, barriers to service delivery and a general climate of uncertainty is taking its toll on the sector’s workforce.

When asked to identify the biggest challenges facing their nonprofit now, the ability to manage workload topped the list, cited by more than half of respondents (52%). 4 in 10 report that staff and volunteers are more stressed than they were pre-pandemic.

As nonprofits continue to adapt to new ways of working and often longer task lists, sector capacity is being stretched. 1 in 3 representatives report a drop in volunteers and 1 in 5 a reduction in staff.

Eduard Marček, former President of EFA and Head of the Slovak Fundraising Centre, says:

Eduard Marček, Slovak Fundraising Centre

“Nonprofits have proved themselves to be hugely resilient and agile, but this cannot come at the expense of the sector’s workforce; the people who work so hard to protect good causes and the most vulnerable communities around us.

“Remote working, reduced staff and volunteer capacity, restricted budgets and higher demand for services are all adding to the challenge of managing workload in an ever-changing environment.

“The biggest challenge ahead of us now surely is not only how to survive and thrive through the next phase of the pandemic, but how best to support and nurture our people and ease workloads. It’s no easy feat but protecting our people has never been more important.”

Developing stronger supporter relationships

Digital has become critical for fundraising and service delivery in a socially-distanced world, but the shift in channels comes alongside a renewed focus on relationship building and supporter care, which are taking a front seat in fundraising strategies. Half of respondents say they are increasing their focus on supporter retention, and 1 in 3 say that supporter relationships have strengthened during the pandemic.

Bijan Bedroud, Senior Vice President and General Manager International at Salesforce.org, adds:

“We know that supporters and volunteers are the lifeblood of the nonprofit community and it’s amazing to see how the shift to digital has enabled organisations to strengthen this bond. The sector has shown its commitment and endurance during the pandemic, and even if we all look forward to more in-person events, the nonprofit community continues to embrace new channels and the opportunities they bring.”

Reactions from the sector

Responding to the findings, Ceri Edwards, Director of People & Engagement at the Chartered Institute of Fundraising and Vice President of EFA, says:

“These findings are a fascinating snapshot of the impact on fundraising across Europe during 2021. It’s clear that the pandemic continues to place challenges on fundraisers all over the continent and is transforming fundraising strategies for the longer-term, especially with the increased focus on digital and opportunities of online events and new channels. While it is encouraging that income for charities is increasing and that fundraising is recovering compared to 2020, significant challenges remain.

“From the UK perspective, it’s concerning that respondents are most likely to say that they have bigger workloads and that staff are more stressed. We need a fundraising workforce that is energised and healthy to be able to raise the funds that our causes need, and the Chartered Institute of Fundraising will be working with its members to develop the right tools, support and training to achieve that.”

Martin Georgi, Chair of the German Fundraising Association (DFRV) highlights nonprofits’ resilience, saying:

“Organisations in Germany were remarkably resilient in the crisis and many even managed to increase their income significantly through active fundraising. Digital channels have become ever more important, but mail and telephone also worked well in the pandemic since donors could be more easily reached at home: the overall outlook for fundraising is optimistic.

“Challenges were faced by organisations that depend on income from live events and for all organisations providing services, not all of which could be easily transferred easily to digital formats. A particular note of concern for the coming months is the continuing high workload – after almost two years of extra efforts and reconciling sometimes conflicting private and professional pressures, and with the pandemic not yet over, many staff and volunteers are struggling or even suffering and need some relief.”

Commenting on the Irish market, Scott Kelley, Chief Operating Officer of Charities Institute Ireland, adds:

“The pandemic has caused a lot of change in our society and this survey demonstrates that the Irish public has responded to the pressures on charities. The lockdowns and the curtailment of our normal social lives have given donors a fresh perspective on charities and the work we do. Many charities have responded to a collapse in traditional fundraising (events, face-to-face) by seeking donations online through digital platforms. This is encouraging because it is impossible to envisage a future without a significant level of fundraising being carried out online or remotely.”

View the report here.

Main photo by Frauke Riether on Pixabay

More than half of the leaders surveyed say their charities have faced a surge in demand for support since the start of the pandemic last year. And almost half of charity chiefs cite concerns about the wellbeing of their volunteers.

The study echoes new findings from the 2021 Nonprofit Pulse report from EFA and Salesforce.Org, which reveals that workloads are rising and pressures on staff have increased, meaning that managing workload has overtaken concerns about raising enough money as the most prevalent challenge for nonprofits across Europe.

UK findings from the Law Family Commission on Civil Society

YouGov polling for the Commission, shows that 6 in 10 charity leaders believe the situation is set to worsen over winter due to a “perfect storm” of rising demand and funding constraints. In fact, 40% of charity leaders do not expect to have the capacity to meet growing demand over the winter.

Demand for charity support is expected to rise in response to cost of living increases, NHS backlogs and cuts to services provided by other agencies, according to the study.

At the same time, many charities are simultaneously having to deal with a large drop in funding, with research charity Pro Bono Economics estimating that the sector could be heading into winter with a permanent £6.6 billion (or €7.8 billion) gap in public giving because of the pandemic. 

Social services charities and health charities expect to be among the worst-hit by rising demand over the winter.

Matt Whittaker, LFCCS Commissioner and CEO of Pro Bono Economics, said:

“The pandemic created an unprecedented crisis for the country’s charities, with demand for their help rocketing at precisely the time that many of them faced a sharp squeeze on resources. It is a testament to the strength and resilience of the sector that it has continued to undertake so much vital work in the face of such challenges.

“After 20 months of upheaval from the pandemic, it is clear from this study for the Law Family Commission on Civil Society that charities are finding it increasingly difficult to sustain their activity. Sector leaders have told us they are bracing for a perfect storm of pressures this winter, which many do not expect to have the capacity to meet.

“Ultimately, overcoming these challenges means ensuring more resources make their way into charities from government, funders and the public. But it’s important too that we recognise the importance of the sector to our wider national outlook – particularly its potential to boost our post-pandemic recovery – by overturning the policy neglect it has suffered from for far too long.”

Photo by Doğukan Şahin on Unsplash

Gathering the findings of a number of third sector studies, the report provides an overview of donations of time, money, and the biological gifts of blood and organs given by Italians last year.

The studies include an IID survey on fundraising conducted in collaboration with CSVnet; BVA Doxa’s Italians in Solidarity research, which surveyed 2000 individuals, and its weekly Tracker which questioned adults with Internet access on the pandemic’s impact on their lives; an Istat survey of 25,000 Italians in 800 municipalities, and research by Solidarity Testament.

The report finds that while Italian generosity increased in 2020 due to the health emergency, this was largely directed at the many initiatives aimed at containing it, with other causes struggling.

BVA Doxa’s Italians in Solidarity report showed that the majority (55% of donors) supported health and research related causes. In second place, 3 in 10 of donors supporters nonprofits linked to the coronavirus emergency and civil protection.

Financial support

In terms of how much people give, the average donation size for donors interviewed for Italians in Solidarity was €80 (up from 2015’s €59 and 2019’s €66), while the average size of informal donations (those not given directly to a nonprofit organisation, such as via a collection during Mass or to homeless people on the street) is €36. Looking specifically at online donations, in 2021 research by Solidarity Testament found the average size to be €90, up from €77 in 2020.

Unsurprisingly, with less opportunities to do so, 2020 saw a slowdown in people donating informally. The Italians in Solidarity survey by BVA Doxa shows that in 2020, 33% said they made informal donations, down from 41% in 2019. Fewer also donated directly to nonprofits, falling from 26% to 21%. These findings are supported by the IID’s own research, where 82% of its sample of around 350 charities said they had raised fewer funds.

The IID’s research found too that only 15% of nonprofits have not seen any change as a result of the pandemic. While 28% of the nonprofits it surveyed saw online donations rise in 2020, 55% raised less money overall in 2020. 45% saw a drop in donations from individuals while 36% saw companies give less, and 15% received less income from foundations. This has continued into 2021 with 43% of organisations estimating that they will end the year with a moderate or substantial decrease in revenue.

Volunteering

Volunteering has also been impacted by the pandemic with lockdowns halting this activity for many. According to the AVQ Istat survey, volunteers dropped from 9.8% to 9.2%. The IID’s study found that 45% of the organisations interviewed were forced to stop volunteer activities with a further 23% substituting them with online activities.

Biological donations

On the biological donation front, the number of those donating blood in 2020 fell by 3.4% compared to 2019, according to data provided by the National Blood Center, with new donors down by 2%.  The health emergency has also caused a decline in organ and tissue transplants.

Commenting on the report, IID president Stefano Tabò said:

“The health emergency has absorbed Italian’s generosity, partly diverting resources that were traditionally destined for nonprofit organisations. The share of those who donate money, give biological donations or volunteer is always a minority and has been experiencing a slow decline for many years. Reversing this course is one of the crucial challenges for the nonprofit and the period we are facing will test its ability to raise awareness among citizens and attract their generosity.”

Image by Orna Wachman on Pixabay

For its ‘Giving, commitment and trust in the wake of the pandemic’ report, Giva Sverige questioned its 54 largest members (organisations with SEK 25 million or more in annual income from gifts and grants) about the gifts and grants received during 2020.

The forecast, which is based on preliminary fundraising results, shows that total income from gifts and grants is expected to be on a par with 2019, when a total of SEK 9.1 billion was collected by these organisations.

Just over 40% of the organisations stated an increase in funds raised, while a little over half predict a decrease and 6% expect no change compared with 2019. However, while public giving remained strong, the biggest change was a drop in corporate donations.

Charlotte Rydh, secretary general of Giva Sverige, commented:

“The decline in donations that we expressed concern about at the beginning of the pandemic seems to have been absent, at least for the larger organisations. The public has shown great commitment and a willingness to contribute during the pandemic year, and according to our forecast, gifts from individuals have even increased compared to 2019. On the other hand, organisations with a smaller share of income from private individuals seem to have had more difficulty in 2020.”

2020 was also the first full year in which a new tax reduction for gifts to organisations working in the fields of social assistance and research could be used. According to the report, three out of four organisations that have communicated this to their donors saw an increase in gifts from the public in 2020.

Giva Sverige would like to see this tax reduction extended to all causes. Rydh commented:

“The tax reduction for gifts as an incentive to increase the commitment to nonprofit organisations seems to work well, but far from all organisations can benefit from it. All purposes, such as children and young people or nature and the environment, should of course be included in order for the tax reduction to contribute to a viable civil society.”

Public perception of nonprofits has also remained high over the past year. Working with Novus, Giva Sverige conducted 1013 interviews with the Swedish public aged 18-79, and found that 8 out of 10 have a positive attitude towards nonprofit organisations. And in fact, this has increased during the pandemic, with more people than ever saying they feel very positively about nonprofit organisations, at 41% compared to 30% last year. Additionally, more now feel empowered to make a difference with two out of three agreeing that they can participate and contribute to solving common societal challenges – again an increase on 2019.

Image: Christoph Meinersmann from Pixabay

Well before the pandemic struck, we were becoming more and more aware of the importance of donor loyalty. In the UK, media scrutiny and nonprofit scandals had damaged public trust, while ever decreasing donor acquisition returns had made it impossible to recruit donors in the volumes we used to, and GDPR had forced the fundraising sector to see the importance of donor data and consent and appreciate that this doesn’t come easily.

And then the COVID-19 pandemic shut off many of the donor acquisition channels that were left.

It’s never been so important to look after our supporters. As Tracey Pritchard said to us when she was executive director of engagement at Prostate Cancer UK last year, “It’s our warm supporters that will pull us out of this. If we get the experience wrong for them now, then we’re dead in the water.”

We know what creates donor loyalty. Commitment to the cause (or a passion for the goal that you are seeking to achieve); satisfaction (or being happy with your communications and feeling valued by the charity) and trust. And we know that loyalty leads to more giving in the future – our own analysis shows that for every one-point increase in donor loyalty, 5.2% more donors go on to give again the next year.

But in difficult and changing times it’s vital to read the room – what’s right today won’t necessarily be right tomorrow. If we go back 12 months, everyone was scared by Covid-19, confused and feeling isolated. And yet there was also a tremendous amount of good feeling created as communities came together to support and care for each other. There was a genuine feeling that we should support one another, and while many things changed very fast, one thing didn’t – the desire to help. There was a tremendous outpouring of goodwill towards others, and for donors this meant that they continued to want to help the causes that were still important to them. Many charities saw record responses to their appeals.

This is why it’s so important to read the room. People wanted to give. We saw this in several big campaigns – most noticeably Captain Tom’s raising of £30m for the UK healthcare organisation NHS Charities Together.

The important take-out is that asking people to give is NOT contrary to providing an excellent supporter experience. People care… passionately! And when they do they want to do something about it. And that’s where we come in. Done well, charities offer donors the chance to live out their values, to make a difference in the world and to feel good about themselves. If we want donors to feel good then we need to offer them a chance to help the things they care about.

Of course, it’s all about how it’s done.

Asking is important, but so is thanking – Research in the UK by John Grain shows that donors remember the thank you more than the appeal. A genuine, heart-felt thank you to a donor will make them feel valued. And in turn they’ll want to support more in the future.

Telling the donor what they have achieved is vital – It gives the donor a feeling of competence (one of the drivers of well-being). And it shows that you value how important they are.

Something else that charities did really well last year was to provide hope. It was vital that charities provided their donors some hope in dark times. In fact, research has shown that it is vital for a donor to believe that progress has or can be made towards a goal before they will give.

Looking Forward

Circumstances can change quickly, and the most successful charities will be those able to move fast. In the UK, we are seeing the end of lockdown with lower coronavirus cases, the vaccines making people feel safer and some growing confidence in the financial future. Of course, many parts of Europe are in a different situation, but this will be seen elsewhere too, over time.

It’s vital to keep these changes in mind – to keep reading the room. Perhaps one of the big questions to ask and monitor is whether people want to return to what they knew before (the old normal), or whether they want to see the pandemic used as an opportunity to create change and a new normal – to Build Back Better as the UK government puts it. As things start to pick up, it’s time to review and ask if can you inspire people behind a new vision? Can you give them a new hope?

Perhaps the key thing is that everyone will be in a different situation. Our UK research shows that, despite the general and significant uplift in mood and optimism, around one in five people are showing signs that it will be years before they feel safe again. And we’re seeing that half the population believe that they won’t be affected by a recession while the other half believe that they will be massively affected. This leads me to suggest three specific recommendations:

Be flexible with your messaging – Reflect what’s happening and try to appeal to people across these divides. Try not to exclude people, such as supporters who still care passionately about your cause but happen to be in a difficult financial situation just now. Talk to people who can give, but not in a way that excludes people who can’t. Tell people about your shops opening up or events, but don’t make people who are scared to go out feel under pressure.

Resource your fundraisers accordingly – Make sure that everyone is ready to speak with a donor who is experiencing hard times. Remember they may not want to stop supporting, but they might have to. Enable your fundraisers to offer them alternatives (payment holidays, non-financial ways to support etc). But most of all, make supporters feel great for the change they have helped you make rather than making them feel bad for having to stop. Then they’re more likely to come back to you.

Always offer hope – Hope is so important to us all, and we can offer it like no other sector. When you’re asking for money, show the difference the donor can make. When you’re thanking them, show them what has happened because of their gift. When you’re sharing stories, show them the progress you’re making. Fill that void and your donors will love you for it.

Roger Lawson, About Loyalty

About Roger Lawson

Roger Lawson is founding director of About Loyalty, a researched based fundraising consultancy in the UK, which specialises in the science of charity supporter loyalty.

Related feature: Special focus: Donor love – Charity campaigns that give back

Main photo by Jarosław Kwoczała on Unsplash

At a time when many traditional routes for fundraising are closed off, nonprofits have had little choice about pivoting to digital and transposing physical events into the virtual world. The impact being widespread acceleration and greater breadth in nonprofits’ use of digital for fundraising, sparking new levels of creativity.

In our recent survey of European nonprofits with Salesforce.Org, almost seven in ten respondents said they increased their use of digital for fundraising during the pandemic and over one third started using fundraising channels that were new to them. Accessible, flexible and cost-efficient, the digital world enables organisations to come up with creative solutions, to finely target campaigns, test new thinking, take risks, track, learn and adapt, all at great pace.

This feature explores some of the recent success stories from fundraising in Europe, together with digital leaders’ insights about future developments.

Embracing social channels

Social media usage soared by 13% in 2020, according to the Digital 2021 Global Overview report, giving nonprofits the potential for even great reach. And while Facebook, Instagram and Twitter are most widely used by charities and cited by donors as the channels most likely to encourage them to give (2020 Global Trends in Giving Report), 2020 was the year that TikTok emerged onto the fundraising scene.

With the ability to post imaginative and authentic content to attract and engage younger followers, nonprofits have become increasingly visible on the channel, achieving levels of high engagement. The light-hearted style of video posts provide much-needed entertainment and distraction from more serious news and life events, enabling early adopter charities like the Norwegian Sea Rescue Society and British Red Cross to have great success on the platform.

So far, relatively few organisations have made much use of TikTok for fundraising and it remains primarily a space for younger audiences (Gen Z and Millennials), but it seems that there is much greater potential and it will no doubt be exciting to see nonprofits how nonprofits experiment with the channel to educate, inspire and appeal to supporters in 2021.

Live-streamed gaming events

Gaming and live-streaming are massively on the rise. Viewing time on Twitch – the world’s largest live-streaming platform – increased by 83% over the year to 17 billion hours and Facebook Gaming grew by 166% (source: StreamElements), so it’s perhaps no surprise that world records were broken for live-streamed fundraising in 2020 too.

Z Event in France, the annual live-streamed gaming marathon on Twitch, smashed global records in 2020 by raising over €5.7 million for Amnesty International. Led by Adrien Nougaret and Alexandre Dachary (better known as ZeratoR and Dach), the marathon brings gamers come together for 50-hours of non-stop live-streamed gaming, encouraging viewers to donate to a different charity each year. First launched in 2016, the event has continued to grow, with the 2020 campaign seeing an 84% annual uplift in viewing hours and almost a 60% rise in donations.

Mais… que… quoi ?! On a dépassé les 5.000.000€ pour @amnestyfrance , et pas qu'un peu !

Vous êtes complètement fous ! Merci ! Merci infiniment ! On aura bientôt le total final, mais on est déjà abasourdi ! pic.twitter.com/95uTyzsUEz

— Z Event (@ZEventfr) October 18, 2020

Greater interaction with social media is further maximising the potential for live-streaming as a fundraising channel and predictions are that gaming will become even more important as an income stream in the years ahead. And with the likelihood that physical events will be limited for some time yet, gaming is yet another opportunity for expanding the virtual events space.

Goats on Zoom

One of the biggest advantages of digital is its ability to level the playing field, with small, local organisations having been hugely creative in lockdown and expanding their supporter base. Simple, authentic and often humorous posts can go a long way in capturing people’s attention and building understanding of the cause.

Animal organisations were quick to get in on the action and offer both quirky and endearing experiences. In the UK, a local farm in Lancashire (UK) tapped into the spike in Zoom users to offer up its goats to ‘butt in’ on calls, raising over €57,000 (£50,000) – a substantial surge in income for Cronkshaw Fold Farm.

Similarly, a live streamed campaign from the Donkey Sanctuary enabled the charity to connect with over one million people across the globe on Facebook Live, leading to a 110% increase in year-on-year online revenue and winning Best Audience Engagement Campaign at the 2020 UK Social Media Awards.

Goats at Cronkshaw Fold Farm

Taking to a virtual stage

Without the ability to perform in the same live space as their audience, artists and nonprofits worldwide are taking to the virtual stage in an urgent bid to generate funds.

At the Youth Centre and School of Arts (MaTeMù) in Rome, (managed by CIES Onlus), performers transformed their Christmas concert in 2020 into an online campaign. The show, “This Christmas, thinking is not enough”, was recorded in Scomodo’s premises – the nation’s leading student magazine, which supported the campaign by hosting the show for free and publishing it as a series of episodes throughout December and early January. The campaign integrated online tools and social media channels (Facebook, Instagram and YouTube), including a landing page on the website with a donation facility. Email and national press coverage further boosted the campaign, raising around €6,500 at almost no cost, with donors giving an average of €92.

Similarly, the VOCES8 Foundation – a UK-based charity which promotes choral music and uses it to educate and develop young people – took its concerts and fundraising drive online to boost donations by 250% over the year. Typically, the Foundation’s two professional singing groups VOCES8 and Apollo5 perform 200 concerts worldwide and, alongside a freelance teaching team, reach thousands of singers each year with music workshops.

“At the start of the pandemic we moved quickly to online delivery,” says Chris Wardle, director of external relations. “We already had a considerable presence on social media and used this to promote daily online interactive content.”

Raising around €260,000 euros (£227,000) between April and October last year, the Foundation was able to invest in professional audiovisual equipment and deliver a series of ten online concerts. Digital ‘seats’ were sold to 40,000 viewers in 62 countries, leading to two further concert series and the launch of a Digital Academy. During the year, they gained 500 new donors – almost a 700% increase.

Wardle adds: “Our use of digital has enabled us to reach a much wider audience, broadening our donor base and helping people to feel connected during the crisis, particular older music-lovers who have been shielding. VOCES8 and Apollo5 will return to touring when they are able but will also set aside time for online concerts and workshops, helping us to continue to reach bigger audiences.”

As and when social distancing restrictions ease, the challenge will be for nonprofits to offer a balance and blend of offline and online events and other activities, enabling them to continue to engage with digital communities as well as a live audience.

VOCES8

Leveraging the power of a brand giant

Nonprofits are also finding increasingly inventive ways of reaching out to new audiences. Henry Rowling, co-founder of Flying Cars Innovation – an innovation agency for charities and cause-driven brands, cites a recent example from France:

Henry Rowling, Flying Cars Innovation

“Amazon saw relentless growth in 2020 as lockdowns globally meant home delivery of goods was highly desirable. So it was exciting to see French NGO L’Auberge des Migrants hijack the Amazon review functionality to raise money and highlight the plight of refugees in Northern France as they face icy weather conditions, the threat of Covid-19 and governmental hostility. Not to mention the trauma they have already experienced in being forced to flee their home countries.”

“This is a great fundraising campaign as it leverages the power and utility of a huge brand to increase awareness of a cause and people that are sidelined and often forgotten about. Hijacking the very commonly used review features to bring to life horrific stories visually is an original creative element.”

Users are asked to either make a donation to the Association or to purchase items needed by real refugees from their wishlist.

Rowling adds: “The campaign places the voice of the Association’s beneficiaries at the heart. The reviews are left by real refugees that are in contact with L’Auberge des Migrants. This kind of tactical, opportunistic campaign shows daring and a fleet of foot we at Flying Cars would love to see more often.”

An example of ‘brandjacking’, this campaign leverages the brand equity of another to promote their cause. He highlights that this is an approach that organisations could emulate so long as they understand where their audience spends time online and what brands they interact with.

Impact of widespread digital adoption

The shift to digital has been significant for organisations across Europe, particularly those in Eastern Europe, where internet usage is fast-growing. Donations doubled through the national online donation platform in Slovakia (Darujme.sk), and the equivalent Czech site saw similar levels of growth (over 80%).

Igor Polakovic, FOUR PAWS International

Igor Polakovic, fundraising campaigns coordinator at FOUR PAWS International and board member of the Center for Philanthropy, says that this steep curve in digital growth over the past year has been a ‘game-changer’ for nonprofits in Slovakia and other parts of Central and Eastern Europe, where regular giving is relatively new.

With no functional Direct Debit system in place, he references online giving and crowdfunding as a ‘gateway’ to normalising donations from the public, saying: “This shift has enabled NGOs to build supporter relationships more easily, integrate online donations with their CRM systems, develop welcome processes and other automations.

“Of course, this isn’t just about digital technology. During the pandemic there’s been more need, more reasons for NGOs to ask and more reasons for the public to give. Plus, it’s been almost impossible to fundraise by other means. So while this may be a case of digital adoption rather than innovation, the impact has been substantial.

“Ultimately, we’re seeing more and better fundraising across a wide range of platforms and social channels. NGOs launched many creative campaigns with the aim of mobilising people and prompting solidarity. There’s greater focus on lead generation, clear targeting, supporter segmentation and more tailored messaging. This once again proved that a crisis can be an opportunity; a swifter shift to a new fundraising era.”

Maximising supporter value

Mattia Dell’era, Fondazione L’Albero della Vita

In Italy, Mattia Dell’Era, digital fundraising manager at Fondazione L’Albero della Vita, reiterates that digital has been transformational for the sector, while cautioning the need to ensure that digital activities are still derived from the fundraising plan, rather than allowing the plan to be dictated by digital opportunities.

“We must also be careful not to confuse digital fundraising simply with acquiring new donors,”  he says. “The digital component should be seen as an opportunity to give donors greater value and to channel other donations with new tools, using a different transaction system.

 “For a fundraising campaign to be incisive and achieve its objectives, communication remains the most important aspect: associations must emphasise their uniqueness and the impact of their work on people’s lives.”

He adds: “We tend to overestimate what will happen in two years and underestimate what will happen in five. In this new technological scenario, we need to invest in the development of new professional skills, but we also need to re-plan traditional soft skills like empathy in a digital key. There is a need and opportunity for innovation.”

Looking to the future

Exploring how nonprofits can maximise digital for the future, Beate Sørum, fundraiser and digital consultant at b.bold, reiterates the importance of the personal approach in digital : “My hope and prediction for the future, is that organisations will start using digital channels not just for mass communication, but to bring back the personal touch and connection to each and every donor.”

Beate Sørum, b.bold

“For too long we’ve been focused on how digital tools can automate processes, thus removing humans from the equation. When what digital really should do is allow us to connect as humans to our donors in a much more efficient manner.”

Sørum suggests: “Send a personal email on someone’s birthday. Set up a Zoom meeting with all new donors this week/month/quarter to introduce them to your work or beneficiaries. Find ways to create offline experiences that leave digital footprints.

 “By all means, let your software help you automate the process that keeps track of all this – but let the humans make the actual connections. Let’s remind ourselves of best practices of the past, and ensure we bring them forward with us.”

Main image credit: Photo by Andras Vas on Unsplash