# Combating the cost-of-giving crisis: why learning data best practice will help

- Link: https://fundraising.co.uk/2023/12/22/why-learning-data-best-practice-will-help-fundraisers/
- Published: 2023-12-22T10:22:00+00:00
- Author: Howard Lake

**Many charities are fighting for survival this winter but there are some vital 
opportunities in early 2024 which could help fundraisers, explains Elise Hunter,
Director of Marketing at the Data & Marketing Association.**

Recent research from the National Council for Voluntary Organisations (NCVO) suggests
that the cost-of-living crisis has created a [‘cost of giving’ crisis](https://www.ncvo.org.uk/get-involved/cost-of-giving-crisis/)
for charities.

Their research suggests this will force one in five (19%) to stop operations completely
until the economic outlook has improved. With industry reports showing nearly 170,000
charities operate in the UK, this could equate to around 34,000 charities unable
to help the people and communities they support.

## Advertisement

The climate remains extremely challenging – 54% believe it will even be tougher 
than last winter. However, there are opportunities in 2024 which could help in the
short to mid-term future.

## Upskilling data-driven marketing skillsets

According to the [Charity Digital Skills Report 2023](https://charitydigitalskills.co.uk/wp-content/uploads/2023/07/Charity-Digital-Skills-Report-2023.pdf),
data is a key priority, with 59% of charities wanting to use data and insights to
improve their services or operations.

Data insights aren’t as overwhelming or time consuming as they might seem. In fact,
data is the greatest asset an organisation has.

When you understand your data, you can effectively target the most receptive audiences
and communicate what matters to the people who truly care about your cause – saving
your team time and resource.

Training budgets are very limited, so, thanks to lobbying efforts from UK industry
trade bodies, like the Data & Marketing Association, the government has recognised
this need and has partnered with us to offer government-funded ‘[Data and Analytics for Marketers](https://dma.org.uk/article/boost-your-teams-data-skills-with-government-funding)’
Skills Bootcamps from January 2024. Plus, up to 90% of the total course cost will
be [funded by the government](https://dma.org.uk/article/upskill-your-teams-with-government-funding)
for charity SMEs.

A common issue we hear from charities across our membership is that they have a 
basic understanding of their data, but they don’t understand best practice on how
to use it to benefit both their organisation and its donors.

The aim is for charities’ marketing talent to walk away with tangible skills and
templates that they can immediately put into practice each week into their current
set up – to be confident that donors’ data and best interests are in capable hands.
During 14-day sessions over 14 weeks, fundraisers develop their skillsets in data
strategy, analytics, and measurement.

![Building blocks are overlayed with digital squares that highlight people living
their day-to-day lives through windows. Some of the squares are accompanied by cursors.](
https://wfay6x.infiniteuploads.cloud/2023/11/ai-city_emily-rand-cc4-2560x1440-1.
png)

Image by [Emily Rand](https://www.emilyrand.com/) / © LOTI / [Better Images of AI](https://www.betterimagesofai.org)/
AI City / [Licenced by CC-BY 4.0](https://creativecommons.org/licenses/by/4.0/)

## Law changes to boost data insights

The Data Protection and Digital Information Bill ([DPDI](https://dma.org.uk/article/dma-welcomes-the-new-pro-growth-dpdi-data-privacy-reforms)),
which has just concluded its journey through the House of Commons, will make a series
of reforms to the UK’s data protection laws early next year.

These important reforms will provide charities and businesses with additional pro-
growth opportunities and legislative clarity, while simplifying administrative burdens
on SMEs – but, crucially, it will maintain the UK’s high standards of protection
and ensure we retain our adequacy status with the EU.

A key reform for charities is the extension of the soft opt-in for email to non-
commercial organisations, which will enable fundraisers to communicate with existing
donors and volunteers – affording charities the same opportunities as businesses
for email marketing.

One of the most significant reforms within DPDI is the greater clarity offered on
what constitutes a legitimate interest – attracting and retaining donors (through
direct marketing) is now clearly identified as one.

This will give a lot more charities confidence to use it as a lawful basis for data
processing where appropriate, helping them to better communicate and engage with
donors. For example, by offering them opportunities based on previous interactions–
Clubcards are a great example of how useful this type of relationship building can
be to both the UK public and organisations.

Also included is an expanded range of exemptions to consent for cookies, which will
reduce consent banners, especially for charity websites that do not take advertising.
Exemptions include collecting statistical information, enabling the way a website
appears or functions, and for necessary security updates. This could be a timely
boost for first-party data collection.

## Data is key for growth

Data-driven marketing insights will be more important than ever in 2024 to help 
charities survive the cost-of-giving crisis. But through government-funded learning
opportunities and pending legislative reforms, there is some light in the not-too-
distant future for fundraisers across the UK.

By prioritising upskilling for communications teams in data and analytics, charities
will afford themselves the best chance of identifying, engaging with, and building
meaningful relationships with donors in 2024.

![Elise Hunter. Black and white photo.](https://wfay6x.infiniteuploads.cloud/2023/
12/elise-hunter-dma.jpg)

**[Elise Hunter](https://www.linkedin.com/in/elise-hunter-31131593/), Director of
Marketing at the Data & Marketing Association**. _With nearly ten years’ experience
in the New Zealand and Australian EdTech Industry, Elise joined the DMA UK as their
Marketing Director earlier this year. The DMA brings together Elise’s passion for
the innovative-nature of the SaaS industry—with their new bite-size Learning Hub
for marketers—while getting to surround herself with the brilliant, marketing-minds
that make up the DMA Community. Her core mission is to promote a truly customer-
centric approach to marketing, ensuring organisations have the resources, opportunities,
and in-house skillset to succeed. The DMA is the UK’s largest trade association 
for data-driven marketers._

 * **[Direct Marketing Association launches campaign to address skills talent shortage](https://fundraising.co.uk/2022/07/12/dma-launches-campaign-to-address-skills-talent-shortage/)(
   12 July 2022)
 * **[DMA crowns winners of customer engagement labs prize](https://fundraising.co.uk/2018/04/05/dma-crowns-winners-customer-engagement-labs-prize/)(
   5 April 2018)
 * **[DMA reveals how UK consumers use email](https://fundraising.co.uk/2017/11/23/dma-reveals-uk-consumers-use-email/)(
   23 November 2017)**
