Understanding supporter behaviour in the cost-of-living crisis

The cost of living crisis continues in the UK, with rising prices and bills taking their toll on our wallets and purses.  

 

For charities, this presents two main challenges. Firstly, how can they themselves prepare for financial uncertainty amid tightening purse strings? Secondly, how can they approach fundraising sensitively while costs to their donors continue to rise? 

 

It is an issue many charities are currently getting to grips with. The Donor Pulse report: Summer 2022, by fundraising platform Enthuse, found that the rising cost of living was the primary concern for three quarters of the public, with 6% also worried about their job security.  

 

This is a contrast to three months ago, when less than half were concerned about the cost of living – 55% of people were more concerned about COVID-19. Now just one in ten say the same.  

 

However, there is some hope on the horizon. The public’s intention to donate to charities remains high, with nearly three quarters stating they will.   

 

Almost a fifth of the public (19%) have donated to humanitarian efforts in Ukraine. Around 2% of donors gave solely to Ukraine, 17% were donors to other causes as well. 

 

The report shows that these donations are not in addition to the number of charities people were giving to before. The public is giving to the same number of causes but redirecting their support to causes they see as priorities. 

 

 

Approaching the cost of living crisis

 

The cost of living crisis is still in relatively early days, but charities should be prepared for economic uncertainty as bills rise and people tighten their purse strings in response. Currently, Enthuse’s research shows that overall giving has stayed fairly consistent despite the rise in costs, but this may change as costs escalate further.  

 

The report shows that people are already feeling the squeeze. Nearly three in five respondents feel they are worse off than six months ago, with 55% also saying their financial position makes it hard to donate. 

 

Of those who feel worse off, 17% have already stopped making donations, while three in are giving smaller or fewer donations to charity.  

 

The number of respondents who said they were ‘somewhat likely to give’ is at its lowest level since Autumn 2021, and those who have not donated in the last three months are less likely to do so in the future. 

 

This is concerning for charities, but the challenge, according to Enthuse, lies in their average donation amount. This is much higher when people donate through a charity’s own website, rather than through third-party consumer giving platforms.  

 

With the majority of donors preferring to give online, making it easy for them to do so through a charity website benefits both them and the charities they support. “Charities need to be mindful of financial challenges and present multiple donation options for supporters,” advises the report.  

 

While the way people feel about their finances has worsened for all in the last three months, the report also showed that younger demographics are offering a lifeline to charities. Four in five under-40s donated to a charity in the last three months, and the same number intend to give in the next quarter. 

 

Of all the age groups surveyed, Gen Z appear to be feeling more positive than most when it comes to the cost of living crisis. They are the only age group where those feeling worse off are not in the majority; a quarter feel better off and 28% feel the same. Younger supporters should therefore form an important part of charity fundraising strategies as we move forward in 2022. 

 

 

Removing barriers to physical events 

 

With normal life making a gradual return for many in the UK, the appetite for fundraising events from both charities and supporters is now returning with it.   

 

However, the cost of living is having an impact in this area, too. There is good news for charities in that only 14% of people highlighted the price of registration as an obstacle to participating, but a third of respondents said they were worried about asking for event sponsorship in the current economic climate.

 

The report suggests instead that charities should focus on how they can support their event participants with fundraising during difficult financial times. 

 

Similarly, the report outlines ways that charities can support their participants when it comes to the fundraising challenge itself. Enthuse suggests that COVID-19 may be having an impact on sign-ups in another, more unexpected way, as people who would otherwise sign up for physical challenges are feeling less fit as a result of the pandemic and resulting lockdowns.  

 

According to Enthuse, there is “some evidence that people are less fit and therefore less willing to enter shorter distance running events, and some have taken up different hobbies during lockdown periods”. 

 

“Charities should be mindful of this and introduce support, and training tips to help supporters get match fit for shorter distances and walks,” the report concludes.