The latest annual Charity Financials Top 100 Fundraisers Spotlight report has been launched, which examines the financial trends of the UK’s top fundraising organisations amid a difficult funding environment...
The report, written by professor Cathy Pharoah at the Centre for Giving and Philanthropy, Cass Business School and sponsored by M&G Investments, assesses income growth, presents a new analysis of the causes dominating the top 100 fundraisers that are—consequently—highly influential on public opinion, and looks at the future as charities fight to regain ground.
Total income picture
Reviewing the overall income picture of the top 100 in 2017/18, total income was £9.6 billion, a substantial one-fifth of the income of all voluntary organisations. The major fundraising charities will no doubt be glad that in a difficult time, total income was maintained, albeit with just a tiny above-inflation growth of 0.8% growth. This is largely explained by the static position of fundraising income, for which the moderate increases in their smaller statutory and charitable income is barely compensated.
Income generation challenges in all streams
While charities’ diverse income base means they can often try to compensate shortfalls in one income stream through increases in others, the picture of performance by income stream reveals how charities are indeed challenged across the board, with many top charities unable to maintain overall incomes. Just over half of the top 100 fundraising charities (53%) reported an increase in their total income, with a few staying the same and a substantial 43% reporting a decrease.
A striking indication of the general strain on fundraising is that 6 of the top 10 charities experienced a fall in fundraising income after adjusting for inflation. These included Cancer Research UK, whose fundraising income fell following operational difficulties with its flagship Race for Life event along with its ‘decision to allow supporters the choice to opt in to marketing communications [which] resulted in lower numbers of new subscribers’ - (Cancer Research UK Annual Report, 2018). Also affected were Macmillan Cancer Support, Oxfam GB (whose total income increased), Royal National Lifeboat Institution, RSPCA and Save the Children. However, in spite of their income drop, the dominant position of these charities in the top 10 went unchallenged largely because of the general stalling of the fundraising market.
To download the full Charity Financials Top 100 Fundraisers report, click here.
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