How to talk about fundraising in a cost-of-giving crisis

Join our Conference: Overcoming the cost-of-living crisis

 

The cost-of-living crisis isn’t only affecting households. Charities are also feeling the impact. In May, a Charities Aid Foundation (CAF) survey found that 71% of charity leaders are concerned about the increasing demand for their services.

 

Many people who’ve been hit hardest are relying on charities for food, shelter and emotional support. Citizen’s Advice predicts that by the end of the year they’ll have supported 57% more people than last year with access to crisis support.  

 

 

What’s the cost-of-giving crisis? 

 

With household budgets being stretched to, and sometimes, beyond their limits, many are looking for ways to save money. That potentially means fewer people being able to donate to charities. According to CAF, one in eight donors are considering cutting back on or reducing donations.  

 

But charities need donations to survive and fundraisers need to be smart about how they ask for money. Here are some pointers to help you ask for donations in a tough economic environment.    

 

 

Get your tone right  

 

We all learnt a lot through the pandemic – with one lesson being that empathy and honesty go a long way. It can help to be explicit and address the awkwardness of asking for money – but don’t overdo it. You could be up front in saying, for example: “We know we’re all being stretched financially right now, but some of us are being pushed to the brink. Just £5 will help.”  

 

Or if, for example, a supporter cancels their regular donation, show that you understand. You could ask if they’re comfortable with giving less money each month, or if they’re happy for you to contact them in a few months’ time. The way you handle this interaction will stay with donors, and even if they’re not able to support you financially today, they’re more likely to in the future if they’ve had a good experience of your charity.  

 

 

Use the 80-20 rule on social and other comms 

 

It’s important not to bombard your supporters with asks. Balance is key. A good rule of thumb is to use the 80-20 rule. That means making 80% of your social posts or comms useful to your audience – whether that’s sharing information, educating them about what you do, or sharing success stories. The other 20% of posts can be specific requests for donations.  

 

This balance will give your audience lots of content to be able to connect with you. It can help them to really understand what you’re all about and what your impact is – but without the risk of zoning out when they see a call for donations. It’s also a way of being sensitive to your supporters’ own financial situations.  

 

 

Demonstrate your impact and how you’re helping the community  

 

Trust and transparency have always been important for charities. When someone donates to you, they need to trust that you’ll spend it wisely. That counts even more right now. Highlight your achievements, whether through newsletters, social or blogs, and if relevant, show how your charity has responded to the current crisis.  

 

When you ask for money, be clear about your impact and why you need donations. Give tangible examples of what people’s money will be spent on. Why should they give you £10? What will you spend it on? And how will that affect the people you support? 

 

 

Understand who your donors are and why they support you  

 

While it’s always important to know who is giving to you and what’s motivating them, now it’s crucial. The cost of living crisis is complex, shifting and will affect people differently.

 

Just as your charity may be supporting new groups of people, you might be attracting new donors who haven’t previously resonated with your cause. Understanding who they are and why they support you, can help you connect with new audiences.     

 

 

Don’t forget about legacies 

 

The Cost of Giving Monitor, produced by the GOOD agency and YouGov, found that legacy campaigns are still crucial, with one in five charity givers likely to consider a legacy gift in the next three months. If you don’t already, it may be worth focusing some of your fundraising efforts on legacies. We have some ideas to get you started.  

 

 

Say thank you 

 

And finally, thank your supporters even more – especially regular givers. At a time of economic turmoil they’ve chosen to give to your charity and every donation counts. Celebrate their contributions and thank them by showing how their money is benefitting others.

 

You might share regular updates about projects they’ve helped to fund – which is also a great way to keep your supporters engaged.