Lower demand, cost constraints & uncertainty hindering return of fundraising events
Melanie May | 17 June 2021 | News
More than half of charities do not expect to reach pre-pandemic levels of fundraising events by the end of 2021, with many seeing lower demand from the public than in a typical year, according to a survey by Pro Bono Economics.
Cost constraints, uncertainty about future restrictions, and furloughed staff have also led more than one in five charities to reduce their spending on fundraising activities in the past year.
The latest edition of the COVID Charity Tracker by PBE, in partnership with Charity Finance Group and the Chartered Institute of Fundraising, found that:
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- Charities that have organised in-person fundraising events for 2021 are seeing lower public demand for places than usual with almost two-thirds (62%) reporting worse take-up than a typical year.
- 54% of charities do not expect to be back to pre-pandemic levels of fundraising events by the end of 2021.
- 70% of charities expect the pandemic to have a negative effect on their ability to deliver their objectives over the next 12 months.
Smaller charities are particularly nervous about the next 12 months, with 57% having seen their overall income drop, compared with 45% of larger charities.
This has been reflected in the number of fundraising events currently undertaken by smaller charities with only 4% currently carrying out fundraising events at pre-crisis levels, compared with 10% of larger charities.
Those smaller charities that are running in-person events in 2021 seem to be faring worse than larger charities, with seven in 10 reporting that bookings are at lower levels than in a typical year, compared to six in 10 of larger charities.
Manchester-based HIV support charity George House Trust for example was forced to cancel its annual gala dinner and its drag ball last year. The charity’s Chief Executive Darren Knight is not currently planning to hold the events this year having seen an 80% drop in the charity’s annual community fundraising last year.
Overall, 49% of charities have suffered a drop in income over the past year, while at the same time 53% saw an increase in demand for their services.
On the more positive side, the survey found that over the past year, 76% of charities had tried new delivery models, 59% increased their workforce digital skills and 42% collaborated with other charities.
Jack Larkham, Research and Policy Analyst at Pro Bono Economics, said:
“With all the positive talk of the economy bouncing back strongly as the country moves on from the worst of the pandemic, the very real challenges facing the social sector risk being overlooked. Charities have seen demand for their services rocket during the pandemic, with the long-lasting impact of the crisis meaning that situation is set to persist even as the country recovers. But elevated demand comes alongside a sharp squeeze on charity resources. Lockdowns and social-distancing rules have made in-person fundraising events – a key source of income for thousands of charities – impossible, and more than half of charities do not expect to return to pre-pandemic levels of events in 2021. To overcome these challenges, it is vital that more resources make their way into the social sector from government, existing funders and members of the public. In the long-term, there needs to be a complete re-think of public policy to reverse the neglect the sector has suffered from over many years.”
Caron Bradshaw OBE, CEO of Charity Finance Group, said:
“It’s a great relief that charities are once again able to fundraise through events and other face-to-face activities and that the general public continue to give generously. However, those who have had to make redundancies and other cuts no longer have the same resources at their disposal and this will inevitably reduce their ability to deliver for the people and causes they support. At the same time, we expect demand for services to continue rising and therefore the gap between income and demand will continue to widen. The sector is not out of the woods yet and the shock of the pandemic will continue to be felt for many months and even years yet. For many charities – including those smaller ones at the heart of their local communities – it’s going to be a long, hard road to recovery meaning potentially unmet need and beneficiaries going without support for some time to come.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.