More than half of charities maintained or grew fundraising income in 2023, says report
Despite the challenges, more than half (55%) of charities maintained or increased their fundraising income in 2023, according to Enthuse’s latest Charity Pulse report.
Enthuse surveyed decision makers at 202 UK charities, and found that small and large charities fared best last year with 58% saying their income had either stayed the same or grown. 52% of medium sized charities maintained or grew income.
Cautious optimism for 2024
Looking at expectations for this year, Enthuse’s study found that charities of all sizes are cautiously optimistic about 2024, with 44% saying they feel very or fairly optimistic about fundraising in the year ahead, and a further 23% feeling neutral. 63% of charities think there will be more opportunities to make use of digital channels; followed by 53% saying younger generations are more positive about backing charities; as well as supporters being more focused on fitness and taking part in physical challenges (49%).
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Half of charities (52%) however said people having less to donate due to the cost of living was a significant challenge this year. 36% of fundraisers are reluctant to ask for donations in the current financial climate, while donor fatigue was a challenge for 29%.
Looking at fundraising streams, Enthuse found that the sector is most confident about fundraising events and activities, with 53% expecting this area to grow. 70% of charities plan to get involved in events like the TCS London Marathon or to organise their own mass events.
Commenting, Chester Mojay-Sinclare, Enthuse Founder and CEO, said:
“Charities have been stretched over the past few years. Society has moved from the uncertainty of the pandemic straight into a cost of living crisis. This has seen the demand for charitable services rise. The sector has handled this admirably and that hard work hasn’t gone unnoticed by the public.
“It’s encouraging to see that more than half of charities saw their income stay the same or increase. It’s testament to the resourceful nature of the sector that charities find a way to continue to deliver results, even against a difficult financial backdrop. But what really stands out to me is a great opportunity to drive income. Fundraising events and activities are seen as the highest growth opportunity in 2024. At a time when many have less disposable income, providing a memorable experience is increasingly important, and taking on a big physical challenge can inspire people to give.”
Tech use
The survey also asked about tech, and found that 5% of charities say they are currently using AI to personalise donor journeys, with a further 9% trialling it.
In terms of social media, the study suggests the use of TikTok on the rise. 29% of charities say they are already using it and a further 16% say they are trialling it. A quarter (24%) are using podcasts with a further 21% trialling them. One in seven (14%) charity leaders say they’re using mobile apps as part of their work. Enthuse also highlights growth in the use of QR codes, which is up 11 percentage points since last year.
Concerns related to tech use include how third parties collect and use supporter data (58%), developing skills to run digital campaigns (63%), and developing social media skills (63%).
Trust & politics
Trust and politics were also part of the survey. Nearly two thirds of those surveyed (63%) say they believe people have a high or complete level of trust in their cause (nine out of ten or higher). At the same time, a similar proportion (66%) say that supporters also expect them to steer clear of political discussions, although 58% say they are increasingly having to stand up for what are sometimes termed ‘minority groups’. One in six said their charity had to defend its actions in 2023, but only 6% of those saw income drop as a result.
In an earlier Donor Pulse from Enthuse, released last September, half of the people surveyed (51%) said they wanted charities to campaign on political issues. This was greater among younger generations – 64% of under 45s support charity political involvement while 61% of over 45s don’t.
That report also found that shows that charities that get involved in the political arena and receive criticism as a result, also receive donations in support, particularly from younger people. In the six months prior, one in five (18%) people overall said they had taken part in this ‘inverse giving’ – rising to nearly two in five (37%) of 18-24 year olds.
Another report, from last October by NPC (New Philanthropy Capital) found that a majority of people who plan to vote Conservative didn’t think that charities are ‘too political’ with 63% saying they ‘get it about right’ and 7% thinking charities should be more political.