Fundraising in 2023 viewed from 2022
John Green | 27 December 2022 | Blogs
Nearly three years after COVID shook up charities and the way we fundraise, what does 2023 look like? A glance into the fundraising crystal ball shows a tumultuous year but with foresight, planning and some nerves of steel fundraisers and their charities can help those in greater need than ever and weather 2023.
The perfect storm of European recession and geopolitical tension will continue. If Russia’s war in Ukraine ceases the chaos and instability this has caused will be with us beyond 2023. China will continue to make its presence felt around the globe but having seen what has happened in Ukraine will use cyber capabilities and nation influencing to advance its agenda. Ongoing tensions between the West and China & Russia will remain for 2023.
Consequently, for charities energy costs, supply chain difficulties and inflation will remain problems. Charities and fundraisers will need to look for cost savings in their 2023 plans and get used to this new normal of higher costs. Those charities that have sensibly considered the rationale for their reserves will need to be use them, the proverbial rainy day for many charities arrives in 2023.
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Against this background, the need for many charities services in 2023 will continue to be high. The
key challenge to sustain operations and income in this scenario will be the tough recruitment market. Recruiting and retaining fundraising professionals will require innovation and an attention to motivation to prevent a churn that will jeopardise income and the work of the charity.
Whilst 2023 will see a more stable UK government than in 2022, a looming general election, though not until 2024, will mean there will be little change in government support for charities, fortunately the possible cut in gift aid relief will also remain off the table.
Income in 2023 will benefit charities with a diverse fundraising portfolio
A much higher inflation than in recent history and rising interest rates will mean the drop in individual giving seen at the end of 2022 will continue in 2023. Fewer people will give and those charities that steward donors well will succeed.
During 2022 fundraising events gradually returned after the COVID shut down, many now also having a virtual component that looks set to stay. Church giving, which traditionally lags due to a slower adoption of technology will move increasingly into digital giving, a move desperately needed as some congregations have not returned to their pre COVID levels. The digital transformation across the sector is not without its risks and those charities in 2023 that have failed to monitor cyber risks and data protection security will suffer data breaches affecting their reputation and ability to function normally.
The bright fundraising light in 2023 will be legacy giving. This will grow in 2023, as the death rate increases, even the slight drop in house price growth will not dent this. Those charities that have
invested in this area and stewarded their supporters well will benefit, mitigating cost increases and
drops in income elsewhere.
Similarly, higher interest rates will help trust fundraising, as investment portfolios benefit. The pivot during COVID by trusts will return to more normal patterns of grant making though the cost-of-living
crisis will attract significant grant giving.
2023 will be a tough year to be in fundraising, those who have planned for the long term with a diverse portfolio stand a good chance of maintaining income to support their charities mission.
On the 31st of December 2023 will these be the key trends of the year and the route to success?
Happy new year.
2023 crystal ball trends
- Higher costs – long term investment in staff and trimming costs
- Polemical news – difficult for charities to raise awareness of causes, informing supporters
directly is vital - Giving holds up – diversified fundraising portfolios mitigate income shortfalls
Survival or success in 2023 - Supporter relations, those who learnt from COVID to engage with supporters not just for an
ask - Risk prevention, attention to cyber security, and data audits will prevent business
interruption - The long game, those who have robust planning at all levels, regularly reviewed and
adjusted will see out the storm.
This post is based on discussions and presentations at the Catholics in Fundraising forum in November in London.
About John Green
John Green has worked in the voluntary sector for over 20 years. After 17 years at seafarers’ charity Stella Maris as their Director of Development, he is now fundraising manager at The Jesuits and has a Masters in Voluntary Administration from South Bank University. In 2012 he founded the networking forum ‘Catholics in Fundraising’ and has been a trustee at various charities including Field Lane and Aberdeen Seafarers’ Centre and has served on the grant making body of The Plater Trust. He also plays the bass trombone.