Is the cost-of-giving crisis a fundraising myth?

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Much has been written about the ongoing cost-of-living crisis in the UK, as prices continue to rise alongside inflation. While there have been small signs of recovery, other forecasts have suggested the cost-of-living crisis could continue until 2028. 

But what does this mean for charities? Over the last year, fundraisers have been concerned about the cost-of-living crisis resulting in a “cost-of-giving" crisis, in which supporters are less able to donate to charity at a time when demand for services is soaring. Charities have had to navigate scenarios in which usually reliable streams of income may falter.  

Fortunately, while it has been necessary to making fundraising more flexible and prioritise sensitivity in the process, the signs have been promising. According to the UK Giving Focus report, from software providers Blackbaud, overall giving rose by 4.2% between 2021 and 2022, indicating that, although times are indeed tough, generosity among the public remains strong for the causes they support. It is up to charities to demonstrate their impact in order to capture that support.  

The report brings together fundraising insights and analysis from multiple sources, such as JustGiving and the Bowelbabe Fund, to discover more about how supporters are behaving and further understand what challenges charities face in the months ahead. 

Below, we explore three of the key trends highlighted in the report. You can download the full report by clicking the button below.

Momentum matters 

Data consumer giving platform JustGiving found that the volume of funds raised in 2022 grew by 10% from the previous year, reaching more than 23,000 charities. Splitting these results into quarters, they were able to identify key drivers behind these results and how this influenced giving behaviour throughout the year.  

For example, the first quarter of the year saw a 4% increase in fundraising, largely driven by donations to causes related to the conflict in Ukraine which began in February 2022. In the second quarter, the increase in funds was driven largely by the work of Dame Deborah James, who raised more £8 million through the Bowelbabe fundraiser.

This fundraiser was the second largest JustGiving page ever after Captain Sir Tom Moore’s landmark 2020 fundraiser. 

The report also pulls from Blackbaud’s own research which found that 48% of charity donors are motivated to give by current events or news related to a cause they care about.  

For charities, these insights show the importance of agility and flexibility when it comes to fundraising. Pascale Harvie, Senior Vice President at JustGiving, says: “Ultimately, the success and resiliency of personally-organised fundraisers teaches organisations the value of capturing moments of inspiration to make the greatest impact, even in uncertain times.”  

Nurture your supporters 

The UK Giving Focus report features an insightful interview with Tom Lay, Partnerships Specialist from Cancer Research UK, who worked closely with the Bowelbabe Fund. Part of the reason the Fund was so successful was because of the strength of the partnership between the charity and Dame Deborah James, who campaigned as “Bowelbabe” to raise awareness of the signs of bowel cancer and funds for further research. 

“As an organisation, the most important thing is to steward and manage relationships with every single supporter,” explains Tom. “It doesn’t matter who they are – Deborah wasn’t someone who had a million followers when she first came to us, she was just someone who wanted to raise awareness of the signs and symptoms of bowel cancer. What we did was give her some really good relationship management and stewardship and gave her the space to have her voice.” 

Tom offers three tips for charities in how to best support fundraisers: offer personalised support, be honest, and make them feel valued. “Whether it’s a written thank you card in the post, or a pair of socks before they do the marathon or just by being there to listen, let your supporters know how wonderful they are.” 

Generosity remains 

More than half of donors said the pandemic had no impact on their donation habits, according to the report. In fact, Blackbaud’s research reveals that younger people are more likely to say they give more now than they did before the pandemic. 

This, again, demonstrates the importance of listening to supporters, understanding them, and showing them how vital their contribution is. Almost four in five donors say they are motivated to give to charity to help those in need – yet only 43% of donors say they know what difference their donation has made.  

Though charities must proceed sensitively and with caution during crises and times of economic uncertainty, supporters still want to help where they can. 

To find out more about supporter motivations and what drives them, you can download the full UK Giving Focus report from Blackbaud here.