# Charities’ pandemic-driven innovation & digital growth expected to last through 2021

- Link: https://fundraising.co.uk/2021/01/08/charities-pandemic-driven-innovation-digital-growth-expected-to-last-through-2021/
- Published: 2021-01-08T10:06:50+00:00
- Author: Melanie May

**Charities expect to continue building on the innovation they have shown during
the pandemic with the increasing shift towards digital and collaboration expected
to last and keep growing during 2021.**

 

New research from the Pro Bono Economics [Covid Charity Tracker](https://www.probonoeconomics.com/the-charity-sector-through-covid),
produced in partnership with [Charity Finance Group](https://www.cfg.org.uk/) and
the [Chartered Institute of Fundraising](https://ciof.org.uk/about-us), shows that
there has been wide-spread innovation and invention through the charity sector as
a result of Covid-19.

## Advertisement

 

Fundraising, service delivery and day-to-day operations have moved online, with 
three quarters (77%) of charities having made greater use of digital and technology
during the pandemic, and two thirds (67%) innovating to deliver services remotely.

 

The majority, 7 in 10 of the charities surveyed, want to make more services digital
and deliver new services remotely over the next 12 months. Over half (54%) want 
to increase their use of technology and digital within their back office functions.

 

Collaboration has also risen up the agenda. 50% of charities say they are looking
to collaborate more with others in their sector, up from 30% in August last year.

 

Anya Martin, Senior Research and Policy Analyst at Pro Bono Economics, said:

 

> “Voluntary and charitable organisations have a long history of overcoming adversity.
> 250 years ago, they rose to the world-altering challenge of the Industrial Revolution.
> Following the last financial crisis, the sector pivoted towards new sources of
> earned income when other sources of funding fell away. This crisis is no different.
> “Much about the months and years ahead are uncertain and the funding gap is a 
> flashing red light on the sector’s dashboard. Yet a determined focus on collaboration
> and digital innovation means it is possible the charity sector emerges from the
> pandemic more closely knit and more efficient in the long-term – ultimately able
> to help more people, more effectively.”

 

Among the challenges faced by charities, the report also highlights that while 35%
wish to enhance their relationships with business, previous surveys have revealed
that these have struggled during the pandemic with just under a third (28%) of charities
reporting a decline in corporate giving in 2020.

 

In addition, one in four charities (25%) anticipate it taking at least two years
for income to return to pre-Covid levels, and 81% expect Covid to negatively affect
their ability to deliver their objectives over the six months ahead.

 

Daniel Fluskey, Head of Policy and External Affairs at Chartered Institute of Fundraising
said:

 

> “The story of Covid through 2020 for the charity sector has been one of huge challenge,
> but also of resilience, flexibility, and innovation. As we look ahead to 2021,
> we will need to learn the lessons of what worked last year and embed some of the
> flexibility and innovation that we’ve seen in fundraising activity. But we also
> have to be realistic that the charity sector will start 2021 smaller than it was
> in 2020 and that a full ‘recovery’ is unlikely to be seen this year.”

 

Roberta Fusco, Director of Policy and Communications at Charity Finance Group also
called on the government to add its support, saying:

 

> “Charities and social change organisations of all sizes have shown huge amounts
> of resilience, adaptability and decisive action through 2020. The imperative to
> keep rapidly adapting will continue through 2021. The capacity to remain flexible
> and adaptable relies on financial sustainability, which is under serious threat
> for many.
> “Charities have stepped up to deliver and adapt at pace and have pulled on all
> the levers at their disposal, but they still face 2021 with hope – now government
> needs to do the same in their support of never more needed charities and not give
> up on the millions of beneficiaries who rely on the public benefit they deliver.”

 * **[Funding & support available for solutions building financial resilience to life shocks](https://fundraising.co.uk/2021/04/23/funding-support-available-for-solutions-building-financial-resilience-to-life-shocks/)**(
   23 April 2021)
 * **[Is governance killing your innovation pipeline?](https://fundraising.co.uk/2021/07/29/is-governance-killing-your-innovation-pipeline/)**(
   29 July 2021)
 * **[St Barnabas Hospice wins award for lockdown Donation Drive-Thru](https://fundraising.co.uk/2021/09/13/st-barnabas-hospice-wins-award-for-lockdown-donation-drive-thru/)**(
   13 September 2021)