Following the economic downturn, is there now light at the end of the tunnel, or are charities simply adjusting to the 'new normal'?
Tracey Lloyd, fundraising director, Action For Kids
The fundraising environment continues to evolve as it always has, and the economic downturn is just one factor affecting charities. Some charities have increased income (Macmillan, Bliss) since 2008, while others have not (NSPCC, League Against Cruel Sports). The reasons for these are varied, as was shown by the story last week on declining income for military charities. Income rose for them during the most intensive years of the Afghan conflict as the country went into recession – in line with military casualties and communicated need, and not reflecting economic growth. Each charity raises funds against a backdrop of different factors, and those that balance these successfully will thrive.
Joseph Howes, executive director of fundraising & development, Depaul UK
Both charities I’ve recently worked at have increased their net fundraising income, year on year, since the economic downturn began. Just as has been the case with statutory income, charities have had to get used to doing more with less money. Making sure resources are placed on the right income streams has been absolutely key. At Depaul, we’re also working to create new and innovative income streams so we don’t just have to rely on fundraising income. The Depaul Box Company, created with Publicis, is a good example: we sell cardboard home removal boxes that often are associated with living on the streets, and use the money raised to help young people escape homelessness. Simple but effective!
Mehmet Baylav, head of fundraising, Health Poverty Action
Charities have no doubt had to adjust. While the government and the media are pushing a perception that the economic recovery is taking place, I’m not entirely convinced that people feel as secure in their jobs and general outgoings as they did before 2008. I think there is still caution, which means people are holding back on non-essentials like donating to charities, or cutting back on the number of charities they support, or the amount they give. Along with this, it feels like the sector is becoming increasingly competitive, making fundraising much tougher. Having said that, I do think that there is still plenty of wealth out there in certain hands, and that is still an opportunity for charities to tap into.
Liz Kearsley, communications & marketing manager, Pennies
We have worked with hundreds of charities, large and small, since launching in 2010. We are acutely aware of the tough funding situation across the sector, and while the economic situation is starting to ease, the feedback we receive from charities remains the same. For them, every penny matters; budgets are still shrinking and charity belts remain fastened at the tightest notch. As some funding streams look unlikely to return to previous levels, new sources of revenue are being developed through innovation. We are pleased to be a charity that has been able to help other charities tap into one such stream through our digital charity box, and we look forward to helping even more as we continue to grow.
