What donors want in 2023

Fundraising when the economy is uncertain is one of the biggest challenges that faces the UK charity sector in 2023. Forecasts by the International Monetary Fund suggest that the UK economy will shrink over the next 12 months, while the cost-of-living crisis continues to affect households with little sign of abating in the near future. 

 

Charities face a delicate balance between rising costs, increased demand for their services, and sensitivity towards the financial difficulties of their donor base. Around four in five charities say they are concerned about the current economic situation leading to fewer donations, according to the Status of UK Fundraising report from software provider Blackbaud.  

 

It is essential, therefore, that charities do what they can to make donating easier for their audiences. That means understanding more about their preferences and motivations for supporting the organisations they care about.  

 

In order to help charities understand donor behaviour in 2023, Blackbaud has created the Donor Behaviour Insights report. The report offers key insights into how donors donate, fundraise, and think about charities that will shape our fundraising strategies throughout the year ahead.  

 

We’ve outlined some of the key trends from the report below.  

 

 

Donor behaviour trends to look out for 

 

• Cash prevails 

Blackbaud asked more than 1000 donors in the UK how they have donated in the past and the ways they would like to donate in the future. Interestingly, the report found that cash is the most popular way to give to charity, followed closely by online donations.  

 

More than a third of respondents said they preferred to donate using cash, while exactly 33% said they liked to donate online.  

 

However, donors under the age of 35 were more likely to prefer donating online – 38% said they preferred to do so compared to less than a quarter of over-55s. Over-55s preferred using cash, followed by Direct Debit donations.  

 

• Flexibility matters 

Around three in five donors say they prefer to give to charity on an ad-hoc basis. In all age groups, more than half cited ad hoc donations as a preference, with the highest proportion coming from those aged between 35 and 54.  

 

The tendency towards one-off donations may prove a continuing challenge for charities looking to consolidate a reliable stream of income during the cost-of-living crisis.  It demonstrates the value of flexible fundraising (in which Direct Debits can be paused) avenues, which may be worth considering in order to attract more donors.  

 

The report also found that under-35s were more likely to prefer monthly giving, with 29% saying so, only slightly edging out the other age groups.  

 

• Generosity remains 

The report shows heartening signs that the appetite for donating to charity is not diminished, despite the financial uncertainty of recent years.  

 

The report reveals that most people (62%) have given to between one to three charities in the last 12 months, with 5% giving to more than ten. Furthermore, more than half of donors said the pandemic had no impact on their donation habits.  

 

The report also found that donating money was the preferred method of supporting charities for most, with 93% saying they donate compared to 26% who say they volunteer. Around three in ten (28%) said they take part in events while 24% said they fundraised. Under-35s are more likely to fundraise than other age groups, with more than a third saying they do and a similar proportion taking part in events.